The use of the smart sub-metering systems to bill tenants is allowed with the written consent of the tenants. The Decision and Order provides landlords with direction on the conditions necessary for using smart sub-metering systems to bill tenants.

The smart sub-metering systems are designed to enable the allocation of electricity use by individual tenants on a unit-by-unit basis. Each tenant consumer is assessed according to his or her actual usage as recorded by their individual smart sub-meters.

In the case of residential complexes, the tenant’s written consent must be voluntary and informed; an energy audit must be conducted by an independent third party; additional details such as a corresponding rent reduction must be provided; and a licensed smart sub-metering provider must be used.

In the case of commercial complexes, the tenant’s consent must be in writing, and meters must be installed by a licensed smart sub-metering provider.

Residential and commercial complexes are provided with electricity, through a bulk meter, by licenced local distribution utilities. This meter records all of the electricity flowing into the building without any differentiation between users. Smart sub-metering systems are designed to enable the allocation of electricity usage by individual tenants on a unit-by-unit basis.