Traway Condominium Management

 

 

 

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Sub-Metering and Smart Metering, What's the Difference and Will it Save Me Money?

Smart Meters have the ability to record energy consumption by time of day.  This will allow utility companies to bill for “peak usage” of the utility, which can billed at a higher rate than non-peak usage.  “Time of Use” billing has not been implemented for those homes equipped with smart meters.

At this time, neither sub-metering nor smart meters are mandatory for multi-unit condominium dwellings.  Equally important is the absolute authority of a board of directors to enter into contracts for the installation of sub-meters without homeowner approval.

Many multi-unit condominiums have their electricity metered and billed through a “bulk meter”, one large meter that measures the consumption of the entire property.  Sub Meters allow for the individual billing to residents of multi-unit dwellings.  Newer more sophisticated sub-meters are capable of also being smart meters.  So, if your corporation is considering the installation of sub-meters, they must also be smart meters. The installation of smart meters is mandatory for single family dwellings in Ontario. For condominium corporations currently on a bulk meter(s), it is not.

Do a quick search on the web, and you will find plenty of information telling you of the benefits of smart and sub meters and as the old adage says, there are two sides to every story.

Pros

  • Sub meters will allow for the individual billing of electricity based on actual usage and effectively make homeowners more conscientious and ultimately more responsible for their consumption.
  • Better tracking of common area electricity usage with the goal of greener initiatives to conserve energy.
  • Adjustments to annual budgets to reflect actual common area hydro consumption only. This should equate to a reduction in your monthly fees.

Cons

  • The complexity of sub-metering contracts could result in 15 year commitments, or even longer contract terms! It is an absolute necessity that boards engage a lawyer experienced in this transition to make sure the Corporations and the Homeowners best interests are placed first.  For example, Measurement Canada requires recertification of meters every 6 years, is this cost included, or in addition to, the contract.
  • While smart and sub-meters are small, they still require space.  The physical complexity of the space required to house the meters makes their installation prohibitive in many instances.
  • Bulk meters have one administrative charge, typically less than $30.00 per bill.  Once sub-metering is implemented, each homeowner will have an administration fee on their bill.
  • All sub-metering contracts are constructed to ensure that the firm engaged to read and bill homeowners will always get paid!  No matter what!  The corporation has a clear path for collection of arrears provided by the Energy Conservation Responsibility Act and the Condominium Act.  If a homeowner is in arrears with their hydro bill, the corporation must take steps to protect this debt in the same manner they can with common element arrears, a lien must be properly registered on title.  But what if the hydro arrears are minimal, lets say $100.00.If the corporation does not take steps to register the debt on title, at a cost of $900 - $1,200, then they will loose the protection afforded them by way of the Condominium Act.  A troubling scenario to say the least!
  • Time of Use billing is being introduced to encourage off-peak electricity usage.  In a multi-unit building environment, we can already see the effects of homeowners who work off-peak shifts.  For those homeowners, their regular daily routine may occur during the early hours of the morning.  This could include laundry, cleaning, vacuuming, dishwashers etc.  There is an increase in noise issues where those situations occur.  Time of use electricity billing will increase tensions in an already difficult climate.

There are many questions to be answered before a board can make informed decisions on sub-metering.  Each case needs to be weighed out on it’s own merit.  Just because it may have not worked for one particular corporation, does not mean it will no work for you and vice versa.  What’s good for the goose, is not always good for the gander!