Ontario
Submetering Services

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Ontario Utility Regulations

UTILITY ELECTRIC GAS WATER
RUBS ALLOWED No No No
SUBMETERING ALLOWED Yes
(with restrictions)
No No

Electricity Ratio Utility Billing Solution (RUBS) Regulation(s):

Utility: Electricity
Tenant Billing: Not Allowed
Regulation(s): Ratio Utility Billing (RUBs) of electricity is not allowed as suite metering is required for all new construction and renovations.

Electrical Submetering Regulation(s):

Utility: Electricity
Tenant Billing: Allowed
Regulation(s):

Energy Efficiency Requirements:

  • All submeters must be certified prior to use by Measurement Canada which is very similar to California regulations for metering via Weights and Measures.

  • Consolidated Acts, R.S.C., 1985, c. E-4, Section (3)(2)(a)(B):
    Electricity and Gas Inspection Act and Regulations Act, Section 9.
    9. (1) Subject to subsections (2) and (3), where a contractor or purchaser intends to use or cause to be used a meter for the purpose of obtaining the basis of a charge for electricity or gas supplied by or to him, the meter shall not, until it has been verified and sealed in accordance with this Act and the regulations, be put into service.
    (2) The director may grant permission for the putting into service, without verification and sealing or without sealing, of any meter or any class, type or design of meter on a temporary basis under such terms and conditions and for such period as the director stipulates.
    (3) The director may grant approval for the putting into service, without verification and sealing or without sealing, of any meter or any class, type or design of meter.
    (4) No meter shall be verified pursuant to this Act until it or the class, type or design of meter to which it belongs has received the approval of the director.

    Electricity and Gas Inspection Act
    List of Approved Registered Service Providers

Rent Reduction:

To enact an electricity suite metering program, the owner is required to reduce the tenant’s rent by an appropriate amount. This is difficult as one does not know the cost that unit contributes to the total bill but that is the requirement and there are some guidelines within the RTA for computing this presented below:

Residential Tenancies Act (“RTA”) RTA s. 137(3)(c) “reducing the rent…by an amount that accounts for the cost of electricity consumption and related costs.”
O. Reg. 394/10, s.4 – Two formulas can be used for calculating rent reductions

Method 1 – s. 4(4) – Actual Consumption

  • Based on actual electricity costs for the unit for the previous 12 months.

  • Adjusted by vacant months during the 12-month period s. 4(5)

  • Added additional charges and taxes for the following 12-month period (calculated based on actual electricity consumed for the 12-month period).

  • If choosing Method 1 – must use same formula for determining the minimum rent reduction for all units in a building

Method 2 – s. 4(6) – Estimated Unit Consumption

  • Estimated based on total building costs for the last 12 months, less electricity usage for common areas, divided by each unit based on square footage

  • Added additional charges and taxes for the following 12-month period (calculated based on estimated electricity consumed for the 12-month period)al

  • If choosing Method 2 – can use method 1 for other units in building (consent given at a later date when actual consumption data available)

Treatment of electrical heat:

  • RTA s. 137(5) “Where primary source of heat in the unit is generated by means of electricity, a landlord may terminate an obligation to supply electricity under subsection (3) in the prescribed circumstances, solely if the landlord meets the prescribed conditions.”
    The prescribed conditions as stated above in RTA S. 137(5) are outlined in RTA s. 137(3):
    (3) Subject to subsections (4) and (5), if a meter or a suite meter is installed in respect of a rental unit, a landlord who has the obligation under a tenancy agreement to supply electricity to the rental unit may terminate that obligation by,
    (a) obtaining the written consent of the tenant in the form approved by the Board;
    (b) providing adequate notice of the termination of the obligation to the tenant in accordance with the prescribed rules; and
    (c) reducing the rent, in the prescribed circumstances and in accordance with the prescribed rules, by an amount that accounts for the cost of electricity consumption and related costs. 2010, c. 8, s. 39 (1).”

  • O. Reg. 394/10, s. 6 – In electricity heated buildings landlords will not be permitted to suite meter the electric heat

  • Existing electrically heated buildings where tenants already pay for the electricity are grandfathered

Fees: Not Allowed

Regulation(s):

The Residential Tenancies Act, S.O. 2006, Chapter 17, Part VII, Section 134 (RTA) prohibits owners from charging any fees pertaining to electricity.
“(1) Unless otherwise prescribed, no landlord shall, directly or indirectly, with respect to any rental unit,
(a) collect or require or attempt to collect or require from a tenant or prospective tenant of the rental unit a fee, premium, commission, bonus, penalty, key deposit or other like amount of money whether or not the money is refundable;
(b) require or attempt to require a tenant or prospective tenant to pay any consideration for goods or services as a condition for granting the tenancy or continuing to permit occupancy of a rental unit if that consideration is in addition to the rent the tenant is lawfully required to pay to the landlord; or
(c) rent any portion of the rental unit for a rent which, together with all other rents payable for all other portions of the rental unit, is a sum that is greater than the rent the landlord may lawfully charge for the rental unit. 2006, c. 17, s. 134 (1).”
Notes:

Unit Sub-Metering Requirement for License –

As stated above, Section 57(c.1) of the Ontario Energy Board Act, 1998 requires that any person wishing to engage in unit sub-metering may not do so without a license
Application for a Unit Sub-Metering Licence
While Canada has enacted the Residential Tenancies Act (RTA) at the federal level they do not mandate it to be adopted by the provinces. If adopted by the provinces, they cannot change the provisions thereon.  However, they can make other additions and deletions so it is important to consult province RTA before starting a program.

Gas Ratio Utility Billing Solution (RUBS) Regulation(s):

Utility: Gas
Tenant Billing: Not Allowed
Regulation(s): Allocation (RUBs) of gas is prohibited in Ontario because is comprised of rent controlled properties. No rules or regulations have been passed allowing the practice unlike electricity.

Gas Submetering Regulation(s):

Utility: Gas
Tenant Billing: Not Allowed
Regulation(s): Suite metering of gas is prohibited in Ontario because it is comprised of rent controlled properties. No rules or regulations have been passed allowing the practice unlike electricity.

Water Ratio Utility Billing (RUBS) Regulation(s):

Utility: Water/WasteWater
Tenant Billing: Not Allowed
Regulation(s): Allocation (RUBs) of water/wastewater is prohibited in Ontario because it is comprised of rent controlled properties. No rules or regulations have been passed allowing the practice unlike electricity.

Water Submetering Regulation(s):

Utility: Water/WasteWater
Tenant Billing: Not Allowed
Regulation(s): Suite metering of water/wastewater is prohibited in Ontario because it is comprised of rent controlled properties. No rules or regulations have been passed allowing the practice unlike electricity.

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