When a rental building is submetered, the lease agreement should clearly address how electricity billing works. Transparency in the lease reduces confusion and disputes after move-in.
The lease should state that electricity for the unit is individually metered and billed by a licensed Unit Sub-Meter Provider. It should identify the provider by name and OEB licence number. It should explain that utility pass-through charges are not marked up, and that the USMP charges a separate service fee.
Ontario's Residential Tenancies Act has specific provisions about utilities and services. Landlords should consult with their legal advisor to ensure lease clauses are consistent with the Act. In general, tenants in submetered buildings are treated similarly to tenants who have their own utility accounts with the local distribution company.
Disclosure is important. Before signing a lease, prospective tenants should understand that they will receive a separate electricity bill from the USMP, that the bill will reflect their actual consumption plus applicable charges, that bill assistance programs like OESP are available, and that they can contact the USMP for billing questions or disputes.
For new leases, incorporating submetering language from the start is straightforward. For existing tenancies where submetering is being introduced, the process may require additional steps depending on the terms of existing leases and applicable tenancy law.
The practical goal is simple: tenants should know what to expect before they move in, and the lease should reflect the actual billing arrangement. Clear documentation prevents misunderstandings and builds trust.