Sub-metering systems: changing energy usage

Some apartment property managers are changing the way they charge tenants for energy. Historically, multi-unit buildings measured natural gas and electricity used by the entire building using a master meter. The usage would be divided equally among the units in the building and were usually included in the rent price.

Some landlords and property management companies are choosing to install and use sub-metering systems to measure energy used by each individual rental unit. Instead of having these utilities included in a building-wide rental rate, each tenant would be responsible for paying for the energy they consumed.

“Sub-metering allows landlords to more accurately bill for energy usage and this actually promotes energy conservation among tenants,” said Chris Vilcsak, president and CEO of Solution 105, an Edmonton energy consulting firm that installs sub-meters.

When master meters are used low-energy users are essentially subsidizing tenants in the building who are heavier users. Sub-metering systems rewards these low-energy users and offers incentives for heavy users to become more responsible for energy conservation. Vilcsak shared that industry sources have found that sub-meters can reduce energy usage 15 to 20 per cent in an average apartment building. These findings are confirmed by Solution 105’s experience.

“One of our first jobs gave us the opportunity to measure the effects of tenant behavior and energy usages before and after a sub-metering system was put in place. The average tenant reduction was 17.2 per cent,” said Vilcsak.

Sub-metering systems can reduce costs for both tenants and landlords and by encouraging energy conservation they contribute to overall impact on the environment. With Earth Day approaching on April 22, it’s important to look for ways to reduce energy use, create eco-friendly habits and develop strategies for long-term energy conservation and sustainability. Reducing energy consumption 15 to 20 per cent in a large multi-unit apartment building is a pretty good place to start.

Note: If your landlord introduces sub-meter in your building it is considered by the government to be a rent increase. According to regulations in Alberta, rent can only be increased once a year. If you have already been subject to a rent increase within the year or have other concerns regarding sub-metering systems in your building, contact your local Utilities Consumer Advocate.