What is electrical submetering and what are the benefits to building owners?
Sub-meters measure individual electricity consumption in each unit. Tenants or unit owners are billed individually and pay only for the electricity they actually use in-suite. Common area electricity is billed to the building owner. By moving to a user-pay system, residents become responsible for the financial implications of their own consumption behaviour.
Depending on the building consumption, roughly 60 per cent of the hydro bill is associated with in-suite use. Once all residents are bill payers, building owners will no longer be responsible for this portion of the bill. There is also significant positive impact on overall energy use. In-suite consumption typically drops by about 27 per cent in electrically heated buildings and 34 per cent in non-electrically heated buildings. This reduces overall building consumption by 15 to 25 per cent.
That said, the benefits extend beyond the results. Submetering enables building owners to manage their electricity budget more efficiently and reduce exposure to rate increases and uncontrolled consumption. By reducing operating expenses, owners can improve their net operating income and building value.
Submetering enables building management to monitor individual suite consumption, which can expose significant issues such as faulty equipment or prohibited activities. It also enables building owners to eliminate exposure to bad debt. There is no equipment risk, since service providers offer full warranty and equipment service for the team of the contract.
Submetering also enhances the building owner’s corporate image, as it demonstrates that they are adopting an effective green strategy. Resident-payers can use the web portal to monitor their own electricity usage and manage their electricity consumption. It’s a win-win prospect for everyone.