Utility submetering is the implementation of a system that allows a condominium association or other multi-tenant property to bill tenants for individual measured utility usage by making use of individual water, gas, or electricity meters for their relevant utilities.
Submetering provides an opportunity for building owners to shift their rising electricity costs to tenants who lack ownership or control over thermal efficiency of the structure, its insulation, windows and major energy-consuming appliances.
Todd C. Quarterman, president of Rochester, N.Y.-based WaterWatch Corporation, says that many condominium communities built or converted prior to 1980 use master meters because they did not submeter the utilities, especially their water.
“In many cases, the HOA is bundling the utility costs into the monthly association fee so homeowners are not required to conserve their usage,” Quarterman says. “Once utilities are submetered and the homeowner is held accountable for their usage, they will conserve. With water submetering, total consumption will decrease around 20 to 25% once submeters are installed.”
Since the homeowners represent the community association, energy costs will also decrease making it a win-win for both the homeowner and the association.