Submetering is a method of accurately apportioning a tenants electric charges based upon direct measurement of electric usage through an approved metering device. It is a way for a tenant to monitor usage and see if his conservation efforts are working to keep his electric consumption and, therefore, his electric bill to a minimum. It provides a tenant an assurance that they are paying only for their usage and are not subsidizing (or being subsidized by) anyone else in the building. The table below shows why submetering is a desirable method of electrical billing.
Methods of Apportioning Electric Charges
| Inaccurate | Semi-accurate | Accurate |
| by square feet | by survey | by submeter |
| by number of shares owned | by appliances used | |
| by number of rooms |
The methods shown under the inaccurate heading are just that, completely inaccurate. They are based arbitrarily and have no basis whatsoever for determining a tenants actual electrical usage and are used solely to cover the building’s electric bill to the local utility company. For example, a tenant with only one room loaded with electrical devices that are used twenty-four hours a day would be being billed less than a tenant with three rooms, only having necessary electrical devices and using them conservatively. Not fair and rightly so.
The methods shown under semi-accurate, while being a much better way of apportioning the building’s electric bill, are still based upon someone’s guess as to usage and it only makes sense that the guess is going to be in the favor of the building and not the tenant (worst case scenario must be covered).
The only fair and equitable method for both the building and the tenant is to know how much the tenant uses exclusively; determined by use of an electric metering device, known in all multi-tenanted properties as a submeter.
Submetering includes both commercial and residential sides, each with its own distinctive measurement devices and billing applications.
How can we help you?
Let’s discuss the submetering requirements for your property. Call Bay City Metering at (212) 575-0785, or send us an email using the form on this page. We look forward to speaking with you soon.