As a tenant, it is important to be aware of your rights and responsibilities regarding electricity, natural gas, and water utilities. Here are some tips to help tenants navigate the process.
Before moving in:
Determine who is responsible for paying utility bills at the rental property – the landlord or the tenant
The person responsible for utility payments is different depending on the situation. Shared houses, basement suites and apartments will all have different set-ups and will be agreed upon in the lease agreement. Possible arrangements include:
- Tenant pays all utilities directly to the retailer or sub-metering company
- Tenant pays for a portion or all of the utilities to the landlord, who has the billing in their name
- The landlord pays for all utilities directly to the retailer
Make sure the lease terms between the landlord and tenant clearly state who is responsible for utility payments.
If the amount to cover utility payments is fixed, the lease terms cannot be changed unless both the tenant and landlord agree to it.
Alternatively, if the tenant sets up a billing account for utilities in their name per the lease agreement, then no cost for these utilities will be part of the monthly rent.
Understand who pays for utilities in shared spaces
Depending on the landlord and the lease agreement, common area utility costs may be paid for by the tenants or the landlord. It is important to ask who is responsible and have it explained in the lease agreement.
If the building sub-metered
The bill will either come from the landlord or the sub-meter company. A sub-meter measures the natural gas and electricity for a specific rental unit. There is a formula that they will use to calculate how much a tenant pays. Tenants have a right to know this formula and should insist that it be in their sub-meter contract. Tenants should also check their bills to make sure they are accurate.
Before moving in:
Remember, it may take time to set up services
It's recommended to call the retailer to set up services at least two weeks before taking possession. New consumers will need to provide their full name and contact information (phone number and email), service address, and desired service start date, theymay also be asked to provide some type of identification, such as a driver’s license number.
The Cost Comparison Tool can be used to compare plans and rates to find what retailer works best for you.
Default rate retailers can typically set-up services right away, while competitive retailers may take up to 30 days.
If a consumer already has electricity and/or gas in their name, they may be able to transfer accounts from one billing address to another.
If the building has a sub-metering system, the consumer will not have a choice of service provider and will have to buy utilities through a contract arranged by the landlord.
If utility services at the property are not active, reconnection may take more time. Call the default rate retailer in the area at least one week before taking possession to allow time for the distributor to reconnect the services.
Plan for additional fees
The retailer or distributor may request a deposit or connection fees to set up utilities. When setting up services, it is important to ask if these fees need to be paid before services are delivered or if they will be included in the first statement. Be sure to ask your retailer if it is possible to avoid these fees. Some companies will waive deposits for consumers who put their account on automatic monthly withdrawal. Ask about the retailers policies for keeping/returning deposits.
Rural locations may have separate meters
Ask the landlord for the meter number or site ID. Many rural land locations have separate meters for buildings and yard lights. Tenants should make sure their services are connected to the correct meter and location.
After moving in
Pay the utility bills
Check with the retailer about how and when the first bill will be received. Some retailers use paper billing, while others are completely electronic. It’s a good idea to also understand what the billing cycle will be. The account holder is responsible for all charges, even if they do not receive a bill.
If consumers do not pay their bills, electricity, natural gas, and/or water services may be disconnected. This could nullify the lease and/or create additional charges if utilities need to be reconnected or if there is damage due to disconnection.
Moving out
Cancel the account or transfer services
It is the account holder's responsibility to close their utility account with their service provider. If the utilities are provided through a default retailer, call them a week in advance. Some competitive retailers require up to a 30-day notice.
The account holder should provide a date to end services. This date will be the same as the last day of your rent or lease. For example, if the lease or rental agreement ends on May 31, ask the service provider to stop billing for utilities on May 31, even if the tenant is moving out a few days earlier.
It is important to provide a forwarding address to the retailer, so they can send any statements or refunds that may be issued after the move.
Consumers may be able to transfer their services from one billing address to another with the same provider. Consumers can check if their current retailer offers services in the new location.
If an account holder is responsible for two properties at the same time – even for a short period - it is important to tell the retailer that there will be an overlap in billing.
Remember that the bill for both properties will likely be larger than the usual monthly bill.
There may be fees for cancelling services
Some competitive contracts may have exit fees for canceling contracts early, consumers should make sure they review the terms and conditions of the contract to see if there are any fees.
Prudential/deposit
The prudential/deposit will be returned to the account holder. If the retailer is holding a deposit for the account, ask them how and when they will return this money.
