In Ontario, if your original lease states that hydro (electricity) is included in your rent, a landlord cannot unilaterally force you to open a utility account in your name or sign a sub-metering agreement mid-lease without your explicit, written consent.
With the cost of living and energy prices surging across Ontario cities like Kitchener, Vaughan, and Toronto, many property investors are looking for ways to cut expenses. A very common tactic is attempting to shift the burden of hydro bills onto the tenant. You might suddenly receive an email from your landlord stating that as of next month, you are responsible for paying the electricity, or they might slide a new “sub-metering agreement” under your door 📍.
If your original lease clearly states that utilities are included, this tactic is completely illegal under the Residential Tenancies Act (RTA). A lease is a binding legal contract. One party cannot simply change the core terms just because their operating costs have increased. This guide will walk you through your rights and how to successfully push back against an illegal hydro bill transfer .
Step-by-Step Process for Protecting Your Included Utilities
When a landlord attempts to offload utility costs, they often use aggressive language or falsely claim that “new government rules” require it. Do not be intimidated. You have the right to refuse, and you must do so clearly and legally. Follow these steps to protect yourself.
Step 1: Review Your Ontario Standard Lease
The very first thing you must do is pull out your copy of the Ontario Standard Form of Lease. Look closely at Section 6, which clearly outlines “Services and Utilities.” There are checkboxes indicating whether electricity, heat, and water are included in the base rent or if they are the tenant’s responsibility. If the box for electricity (hydro) is checked as “Included,” the landlord has no unilateral right to change it .
Step 2: Refuse the Transfer in Writing
Once you confirm your lease terms, reply to the landlord in writing (via email or a formal letter). Keep your tone polite but firm. State clearly: “As per Section 6 of our signed Ontario Standard Lease, electricity is included in my monthly rent. I do not consent to transferring the hydro bill into my name, nor will I sign a sub-metering agreement.” Keep a copy of this correspondence 📄.
Step 3: Do Not Sign Any New Agreements
Often, a landlord will bring in a third-party sub-metering company (like Wyse or Enercare) to install individual meters for each unit. They will pressure you to sign a contract with this company to activate your account. Do not sign it. If you sign a sub-metering agreement, you are voluntarily giving up your right to inclusive utilities. The landlord can install the meters, but they must keep the account in their name if you refuse to sign.
Step 4: File a Form T2 or T3 with the LTB
If the landlord ignores your refusal, illegally sets up an account in your name, or begins harassing you daily to pay the new bills, you must take legal action. You can file a Form T2 (Application about Tenant Rights) for harassment, or a Form T3 if they illegally reduce a service. If the landlord shuts off your power to force your hand, this is a severe provincial offence, and you should immediately contact the Rental Housing Enforcement Unit (RHEU).
How Much Does it Cost in Ontario?
Defending your lease terms should cost very little, as the law is overwhelmingly on the tenant’s side in these disputes. Here are the potential costs involved (in CAD):
| Action / Service | Estimated Cost (CAD) |
|---|---|
| Reviewing the Standard Lease | $0 (Do it yourself) |
| Contacting the RHEU for Shut-offs | $0 (Free provincial service) |
| Filing a T2 or T3 with the LTB | $48 (Online filing fee) |
| Consulting a Licensed Paralegal | $150 – $350 (If landlord harassment is severe) |
How Long Does the Process Take?
Sending a refusal letter is immediate. If the landlord backs down, the issue is resolved instantly. However, if they retaliate and you must file an application with the Landlord and Tenant Board, you are subject to the current provincial backlogs. It may take 8 to 12 months to get a hearing. If the landlord completely cuts off your electricity in retaliation, contacting the RHEU often yields results within 24 to 48 hours, as cutting vital services is highly illegal.
Frequently Asked Questions (FAQ)
What if my lease never specified who pays utilities?
If you have an older, informal lease that does not explicitly mention utilities, the LTB will look at your past behaviour. If the landlord has historically paid the hydro bill for the last two years without asking you for money, the LTB generally considers inclusive utilities to be an implied term of your lease.
Can the landlord offer me a rent reduction to pay my own hydro?
Yes. A landlord is legally allowed to negotiate. They can offer to lower your base rent by a certain amount (e.g., $100 per month) in exchange for you taking over the hydro bill. However, this must be a mutual agreement. You are free to say no.
What if they threaten to evict me for refusing?
A landlord cannot legally evict you for refusing to change the terms of your lease. If they serve you with a fake eviction notice (like an N5) as retaliation, the LTB will almost certainly dismiss it as an invalid, bad-faith eviction.
Can they increase my rent above the guideline to cover hydro?
Not without LTB approval. If your building is rent-controlled, the landlord cannot simply raise your rent by $200 to cover their hydro costs. They would have to apply to the LTB for an Above Guideline Increase (AGI), which is very difficult to win for basic utility increases.
Should I hire a paralegal if they shut off my power?
If a landlord shuts off your electricity to force you to pay, this is an emergency. You should immediately call the RHEU. Afterwards, hiring a local Ontario paralegal from our directory is highly recommended to file a massive T2 harassment claim for substantial financial compensation.
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