The Ontario government is promising new consumer protections for electricity customers who have accounts with unit sub-meter providers (USMPs) in multifamily buildings. A newly released summary of pending legislative initiatives includes planned amendments to the Ontario Energy Board Act to impose more regulatory prescription over suite metering fees and administrative practices.
That comes with an acknowledgement that roughly 10 per cent of Ontario’s residential electricity customers are treated differently than the larger share who have direct accounts with a local distribution company (LDC).
“Both LDCs and USMPs are licensed and regulated by the OEB, but USMPs are subject to a less prescriptive regulatory framework. As a result, USMP customers have fewer protections than LDCs’ customers,” the Ontario government’s briefing document states.
The proposed changes would require sub-meter providers to comply with service standards that LDCs have long had to meet, including a 1.5 per cent cap on late payment fees, consistent 12-month payment plans and a prohibition on wintertime disconnection. Sub-meter providers would also have to make at-the-door payment options available for customers on the day their disconnection notices are to take effect, and ensure that reconnection occurs within two business days of an arrears payment or the arrangement of a repayment plan.
The Ontario government highlights a disproportionate number of complaints emanating from the sub-metered multifamily sector. In 2024, roughly six times more sub-meter account holders cried foul — equating to 39.5 per 100,000 versus 6.4 per 100,000 direct residential customers of the LDCs. As well, it’s noted that USMP clients “primarily” raised issues related to billing and administrative fees.
The effort to apply more even protections comes nearly eight years after the Ontario government repealed legislation that would have given the Ontario Energy Board authority to regulate sub-metering fees. At that time, it was projected the resulting reduced regulatory burden would save unit sub-meter providers about $1.3 million annually and promote investment in the sector.
