The Ontario Energy Board (OEB) has issued a ‘Decision and Order’ that will allow landlords to install ‘smart sub-metering systems’ for individual rental units. Smart sub-meters’ are devices that can be installed in individual apartments to monitor a tenant’s use of energy thereby allowing individual billing.
(Refer to this link for more details: http://www.toronto.ca/legdocs/mmis/2009/cc/bgrd/backgroundfile-23859.pdf
The main reason behind this ‘Decision and Order’ is that landlords/ property owners have been installing ‘smart meters’ in residential and commercial complexes in the absence of regulations. Ostensibly the purpose of these ‘smart meters’ is to monitor the energy used by the individual occupant(s) and give them control over usage so that they can become more energy efficient. In a nutshell, landlords were transferring energy costs to individual tenants without the approval of the OEB energy regulator.
After this practice was deemed illegal by Ontario’s energy regulator, landlords had to cease this activity. This latest ruling by the energy regulator at the OEB now allows the installation of ‘smart sub-metering systems’ but it contains a set of conditions that will govern the installation process.
It is important to note that among the various conditions contained in the ‘Decision and Order’ from the OEB the most significant one affecting tenants explicitly states:
The use of the smart sub-metering systems to bill tenants is only permissible with the express written consent of the tenants.”
The option for consent can be exercised when the tenant signs the lease/tenancy agreement.
The conditions associated with this OEB ruling are extensive and complex and can be reviewed in the Decision and Order and also in the report at the link below:
OEB authorizes installation of electricity smart sub-metering systems in residential and commercial complexes
http://www.newswire.ca/en/releases/archive/August2009/13/c4541.html
Although there are multiple reasons for ‘smart sub-metering’ (mostly to do with conservation and allocating financial responsibility) these concerns below immediately come to mind:
1) There are some tenants who use a lot more electrical energy and water than others due either to the number of occupants residing in a unit and/or the electrical appliances they operate such as washers, dryers, air conditioners etc. This means that the units with fewer occupants and/or no additional electrical appliances are consuming less electrical energy and water and therefore are subsidizing units that use more resources.
2) Tenants residing in a badly maintained or older building with poorly insulated windows, doors and walls will have a very high energy bill compared with tenants in a well insulated building. These deficiencies fall under ‘capital expenditures’ and repairing or upgrading these items is the landlord’s responsibility and can be covered by their profits. Aging electrical appliances such as stoves and fridges that are not energy efficient will also increase the energy bill. This shouldn’t be an issue for new buildings.
3) Is there the possibility that the landlord might be able to circumvent the Annual Guideline Increase by claiming the installation of ‘smart meters’ can be bundled with other capital expenditures and therefore apply for an Above Guideline Increase?
The fact that landlords/property owners are ‘for’ this regulation gives one a gut feeling that there are less financial benefits for tenants. Therefore this question has to be posed: Do ‘smart sub-meters’ have more to do with money and increased profits for landlords than for environmental concerns and a fairer system of payment for energy consumed by individual tenants?
Tenants should examine all the ‘pros’ and ‘cons’ of smart sub-meters and do the math related to hidden fees and their actual monthly rent before signing the lease/tenancy agreement.
These links below provide more detailed information to help you make an informed decision on whether to agree to the installation of a smart sub-meter in your apartment:
1. Toronto Star articles:
– Tenants must consent to smart meters under new rules
http://www.thestar.com/article/681451
– Smart meter ban boggles supplier
http://www.thestar.com/business/article/626018
– Smarten up on smart metering
http://www.thestar.com/article/684874
2. Your landlord wants you to start paying for electricity – Be Careful
http://www.lowincomeenergy.ca/wp-content/uploads/2008/12/acto-tenant-info-flyer-on-smart-submetering-august-2008-update.pdf
This publication was prepared by the Advocacy Centre for Tenants Ontario (ACTO) and contains a helpful Q&A section as well as some important cautions for tenants.
3. So your landlord wants to sub-meter electricity service in your apartment building… is another publication from ACTO. It provides a definition of ‘smart sub-meters’ and identifies issues where tenants should exercise great caution before committing to smart sub-meters:
http://www.lowincomeenergy.ca/wp-content/uploads/2008/12/soyourlandlordwantstosub-metertenantinfobrochure_updatedjune2008.pdf
4. Smart Meters: A New Way To Think About Electricity
http://www.smartmetersontario.ca
According to the information at this site . . . “By 2010, every home and small business in Ontario will have a Smart Meter”
5. Installation of Smart Meters in Residential Rental Units and Its Impacts on Tenant Affordability
http://www.toronto.ca/legdocs/2008/agendas/committees/td/td080617/it002.pdf
This is a City of Toronto staff report that provides clarification on ‘smart sub-meters’. Pay close attention to the section Case example: A Rental Building in North York as it contains an example of a tenant who opted for ‘smart sub-meters’ but, due to various additional fees, ended up paying a very high monthly rent. This case has become contentious and the tenant has taken the case to the Landlord and Tenant Board.
6. Smart Sub-Metering Resources published by the Federation of Metro Tenants’ Associations (FMTA)
Refer to their website for more details:
https://www.torontotenants.org/
7. Residential Tenancies Act (Landlord and Tenant Board)
Smart Meters and Apportionment of utility costs
http://www.e-laws.gov.on.ca/html/statutes/english/elaws_statutes_06r17_e.htm
This link taken from the Residential Tenancies Act (e-laws) PART VIII, Sections 137 and 138, respectively, includes legal information on the rights and responsibilities of both the landlord and the tenant.
While we all have to embrace a more conservationist ‘green’ approach to the environment and dwindling resources we must not be sucked into a scheme that will enrich landlords/property owners while impoverishing more vulnerable members in society.
GET INFORMED ON THIS ISSUE OF ‘SMART SUB-METERS’ BEFORE YOU MAKE A DECISION TO EMBRACE IT!
NOTE: For another perspective on smart sub-meters refer to this follow-up post “Smart Sub-meters … Getting it Right” at this link: http://wp.me/pia0J-BC
East York Tenants Group 
Last week we rec’d notice a Hydro rep was coming to inspect the ‘recent energy conservation retrofit’ . . . whatever that is! By the way I live at 165 Barrington Ave and have no clear idea what they mean by this retrofit. Anyway we were required to have any additional locks unsecured to allow entry to this rep so because of the burglary some weeks ago I stayed off work that day but no one came to inspect my unit. What a wasted day. Other tenants in the building also said that the rep never came to their unit either even though they were at home that day. Does anyone know if this Hydro visit has anything to do with installing those smart meters in at our building? From what I gather this building is quite old, probably close to 40 years old and there are a lot of things that need repairing and upgrading. We have ancient drafty windows and screen doors where heat escapes when its cold. Will we be stuck with a huge capital expenditure bill because of this ‘retrofit’ now that the annual guideline rent increase for next year has been increased? A long term tenant mentioned that this building was built with taxpayer dollars and the conditions attached to getting that money were simply ignored by the landlord. A municipal permit about repairing plumbing has been posted for weeks outside the rental office. Does anyone in this building know what that municipal permit is about? Would love to know more.
CM
Just wanted to share this bit of information that came to my attention. The Enbridge company has quite a well designed site that provides all kinds of information associated with installation of these ‘smart meters’ . . . . . especially to do with pricing but also other important details on this ongoing subject. Enbridge has been providing services to both residential and commercial complexes for several years. They have a ‘consumer education’ section as well as a detailed FAQs section, not to mention a chart that helps you estimate your usage. However, I paused a bit when I came across the section on ‘disconnected for non-payment’ . . .
Those who are interested in learning more FAQs about ‘smart meters’ should check these links:
http://www.enercareconnections.com/EEC/FAQ.aspx
http://www.torontohydro.com/sites/electricsystem/residential/smartmeters/Pages/SmartMetersFAQs.aspx
Here is a great link for homeowners….
A GREENER HOME, ROOM BY ROOM
http://news.cnet.com/2300-11128_3-10001322.html?tag=nl.e404
E.M.
Excellent article and equally excellent questions and concerns raised. I particularly like the questions raised by MargC.
I would add the following to them:
Supposing each rental unit received its own hydro bill but the tenant falls far behind on payments, will hydro be cut for just that unit?
How will the whole thing be administered and monitored for accuracy and accountability?
Before any of us should even consider agreeing to this, we need a whole lot more specific and detailed information on just WHO, WHAT, WHERE, WHEN and HOW this will be handled.
I agree with conservation and accountability for our use of non-renewable resources, i.e. I, too, consider myself ‘green’, but I have no desire to be a part of something that’s not thoroughly thought through and tested and analysed in a proper business model!
Although the “smart sub-meters” programme does sound like a good idea, i have a few questions that make me wonder about this programme
1. will tenants receive a bill from hydro or does the landlord control this additional expense?
2. what happens to the landlord’s portion of the hydro expenses for security & safety inside & outside of the building; running of the washing machines & dryers? will this also be passed onto the tenants if the landlord controls the billing process?
3. will water usage be next?
4. if the tenant does not receive a direct hydro bill, what safeguards are in place that allow tenants to challenge any unreasonable & unbelievable billings?
5. with the items in the news over the last few months/years about illegal drug “grow-ops” that were found in apts throughout the city of toronto & other cities, what impact would this have on the hydro billing for current tenants who are living lives that do not include this illegal activity?
Ain’t life grand! Gotta to give it to them.
It is so devious of landlords to make use of the conservation issue here for their own gain. Landlords can always find a way to squeeze more money out of tenants. As you say, it seems to be all about MONEY AND PROFIT. I will not to consent to smart meters.
Seems to me that this is just another ploy to benefit landlords under the guise of equitable billing and being ‘green’. A tenant living in a poorly insulated building that is in dire need of renovation and repairs will have to pay a very high energy bill if they consented to smart meters. THAT SUCKS! That 1.8% annual increase guideline must be a source of great irritation to landlords.
Many apartment building in the GTA were BUILT WITH TAXPAYERS MONEY? Not landlord’s money, OUR MONEY! Landlords and developers have a very close relationship with landlord lobbyists and politicians at all levels of government and always get what they want. WHAT MORE DO LANDLORDS WANT?
We all need to be more ‘green’ (that includes businesses, homeowners, and renters) in our daily lives and should put in greater efforts to achieve this and stop jeopardizing our wonderful planet. As for sub-meters in apartments – it is those landlords who are more enthusiastic about these ‘smart meters’. How will I know if the rent I am being charged after agreeing to smart meters is fair? Would that NEW RENT BE GREATER or LESS than what I would pay if I consent to these meters? Remember – energy costs are affected by great price fluctuation in the marketplace. . . .
And we have to be very careful with those third party HIDDEN FEES associated with the installation!!! It is good that you raised the issue of overcrowded rental units and extra personal appliances that increase energy consumption as these units are definitely being subsidized.and contribute to high energy consumption. Landlords can probably use that as a selling point to other tenants who think they can save a few bucks. If landlords weren’t so greedy and negligent and did the required repairs and renovations to shoddy apartment buildings there would not be all this energy waste. It is all about money! Since I don’t own my unit I will not agree to these smart meters.
This is the first I am hearing about these smart meters and am not too comfortable with this idea … I think that although ‘smart sub-meters’ in apartment buildings appear to be an environmentally friendly initiative (not incentive) I have to wonder how the landlord (and their accountants) will ‘allocate the installation costs’ when it comes to ‘capital expenditures’ particularly with regard to the Annual Guideline Increase and Above Guideline increase . . . not to mention calculating the actual monthly rent a tenant has to pay once those meters are installed. Hmmmm. They will probably get great financial benefits from ‘smart meters’ than us tenants. So this will be a fairer system for whom? In my building there’s quite a bit of overcrowding in some units and some tenants were doing cooking for restaurants … I used to see them all the time in the elevator with these huge containers of food on a trolley. So maybe those who use less energy etc. won’t be subsidizing those that do use more. But we really should pay careful attention to who this new initiative will benefit the most – the landlord vs. the tenant.
RR