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 $178 over budget in winter. This information must be disclosed in the lease.
In the Ontario Standard Lease (Form 400)
Schedule A (Additional Terms), clearly state:
“The Tenant is responsible for all utilities billed directly by [Provident Energy / Metergy / name of company], including electricity, heating, hot water, and cooling. The Landlord is responsible for the condo corporation monthly fee which includes [specify what’s included]. Hot water heater rental ($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
📞 416-888-6161 · arthurzhao.realtor
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