In a Sub-Metering arrangement, who acts as the electric utility provider?

In a Sub-Metering arrangement, who acts as the electric utility provider?

• A. The building owner
• B. The tenants
• C. The local utility company
• D. A private energy broker

Answer: (A)

Submetering separates each unit’s electricity use by installing individual meters, while the main service from the local utility still feeds the building. The building owner becomes the entity that bills and collects payment from tenants based on those submeter readings, and then passes the total usage to the utility company. In this setup, the owner effectively acts as the utility provider to the tenants, handling the billing and responsibility for electricity costs. A private energy broker may help with procurement, but they don’t serve as the utility provider, and the local utility company remains the supplier of the actual electricity to the building.

Submetering separates each unit’s electricity use by installing individual meters, while the main service from the local utility still feeds the building. The building owner becomes the entity that bills and collects payment from tenants based on those submeter readings, and then passes the total usage to the utility company. In this setup, the owner effectively acts as the utility provider to the tenants, handling the billing and responsibility for electricity costs. A private energy broker may help with procurement, but they don’t serve as the utility provider, and the local utility company remains the supplier of the actual electricity to the building.