“SUITE METERING: THE ESSENTIALS”
A smart meter can read how much electricity is being used by a particular user and when. Electricity utilities allow users of smart meters to logon to their own Time-of-use web page where they can track their consumption/usage on an hourly/daily/monthly/yearly basis. Therefore, a smart meter allows the user to plan and track their usage of electricity as much as possible in order to lower costs.
The Ontario Energy Board (OEB) sets rates for the commodity price of electricity for consumers on the Regulated Price Plan; Tiered prices or Time-of-Use prices. Tiered pricing is based purely on the amount of energy used; i.e., up to a certain amount of energy used, the consumer pays one price for that energy consumption and then pays higher prices on any additional energy used. Time-of-use pricing requires the installation of a smart meter and is based purely on when the energy was used. Under the Regulated Price Plan, consumers pay a tiered price for electricity, unless time-of-use rates are in effect in their area.
A consumer can also sign a contract to switch to an electricity retailer. Most of these contracts, which are not regulated by the OEB, currently offer a fixed electricity price all day. It should be noted that in Ontario most, but not all, utility companies supplying electricity to consumers fall under the OEB’s Regulated Price Plan. The price charged to consumers for the electricity itself is the same for every utility company that falls under the jurisdiction of the OEB’s Regulated Price Plan. However, the charges paid by consumers for the delivery, regulatory and even debt retirement related to that electricity will be different depending on the utility company that is supplying the electricity.
Residential Rental Units
On January 1, 2011, The Energy Consumer Protection Act came into effect. As a result of this Act, landlords will be able to install individual suite meters in residential rental units. Suite meters will allow tenants to pay their own electricity bill based on their actual consumption and as a result help manage their energy usage/costs. If a landlord chooses to install individual suite meters, a landlord must obtain written consent from an existing tenant before he/she can bill them for their individual electricity use.
If electricity was included in a tenant’s rent, landlords must lower the rent if the tenant chooses to pay for their own electricity using a suite meter. The landlord must reduce the rent by an amount that accurately reflects the electricity costs the tenant will now have to pay separately. For a new tenant going into an existing building where there is suite metering, the landlord must provide available information on the electricity consumption for that unit.
For buildings with six or less units, the landlord can, with informed written consent from the existing tenants, charge the tenants an appropriate portion/percentage of the costs of the utility for the whole building rather than install individual suite meters. Of course the landlord would have to reduce the rent for the rental unit accordingly and provide consumption information and costs for the building as a whole. Suite meters must be installed in new rental construction and the installation must take place prior to the rental unit being occupied.
Residential Condominiums
For existing condominiums, the Act allows the board of directors to decide whether it is in the best interests of the owners to install individual suite meters. The Energy Consumer Protection Act gives a condominium board the authority to make this decision despite the fact that the condominium’s declaration may require that the building be bulk metered and the owners be required to only pay for electricity costs as part of their common element payments and in accordance with the square footage of their units.
No amendment to a condominium’s declaration is required if there is a conflict and the board of directors want to move ahead with individual metering.The Act requires that for new condominiums, suite meters must be installed before completion of the construction of the condominium building. In addition, each individual suite meter must be installed before that unit is occupied.
For the very latest time-of-use price periods and prices, go to: www.ontarioenergyboard.ca/OEB/Consumers/Electricity/Electricity+Prices
For more information on smart metering go to: www.ontarioenergyboard.ca/OEB/Consumers