Ontario Lease Utility Clauses: Don’t Get Trapped by Hydro Included






Ontario Lease Utility Clauses: Don’t Get Trapped by “Hydro Included” | Arthur Zhao




Ontario · Rental Guide

“Hydro Included” Doesn’t
Mean All Utilities Are Covered

The sub-metering trap and how to write your lease correctly ↓

One of the most common lease disputes I see in new condo rentals: tenants thought “hydro included” covered everything — then received a $278 winter bill from Provident Energy. Here’s the real breakdown, with actual bill data, and how to write lease terms that prevent surprises.

1
“Hydro” = Electricity Only

In Canadian usage, “hydro” specifically refers to electricity — not all utilities. A new condo may have separate billing for: electricity, heating, hot water, and air conditioning. In buildings using sub-metering companies (Provident Energy, Metergy, Wyse, Carma), these charges are billed directly to tenants — even if the lease says “hydro included.”

2
Real Bill Data: Spring vs Winter

Actual sub-metered utility bills for a downtown 1-bedroom condo:

🌸 Spring (Metergy): $107/month — electricity $43 + hot water $37 + service fee $27
❄️ Winter (Provident): $278/month — electricity $53 + heating $189 + hot water $36

A tenant who budgets $100/month for utilities will be $178 over budget in winter. This information must be disclosed in the lease.

3
Correct Lease Language

In the Ontario Standard Lease (Form 400) Schedule A (Additional Terms), clearly state:

“The Tenant is responsible for all utilities billed directly by [Provident Energy / Metergy / name of company], including electricity, heating, hot water, and cooling. The Landlord is responsible for the condo corporation monthly fee which includes [specify what’s included]. Hot water heater rental ($X/month, Reliance/Enercare) is the responsibility of [Landlord/Tenant].”

4
RTA Vital Services Protection

RTA Section 21 defines vital services (heat, electricity, gas, hot water) as services landlords cannot cut off — even if rent is unpaid. A landlord who cuts heat must go through LTB. If heating fails, tenants can file a T6 Application (Maintenance/Repair) to compel restoration. Ontario standard: indoor temperature must reach at least 20°C from November 1 to April 30.

3 Questions to Ask Before Signing

① Which sub-metering company serves this building?
② What were the monthly utility bills for the past 12 months?
③ Is the hot water heater owned or rented — and who pays the rental fee?
Utility costs are one of the biggest hidden variables in rental budgeting. Get the answers in writing before you sign.

AZ
Arthur Zhao
Broker · SRS · ABR · MCNE
📞 416-277-3836 · arthurzhao.realtor

#SubMetering
#OntarioLease
#HydroIncluded
#CondoRental
#ProvidentEnergy
#TenantGuide


Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Reset password

Enter your email address and we will send you a link to change your password.

Get started with your account

to save your favourite homes and more

Sign up with email

Get started with your account

to save your favourite homes and more

By clicking the «SIGN UP» button you agree to the Terms of Use and Privacy Policy
Powered by Estatik
Scroll to Top

Discover more from GTA Real Estate Broker | Arthur Zhao

Subscribe now to keep reading and get access to the full archive.

Continue reading