Billing Methodology

submetering billing methodologyThe phrase – “every property is unique” doesn’t just apply to the design of the submetering equipment.  Submeter Solutions will develop a specific billing methodology for every new monthly utility billing services account.   Submeter Solutions assigns a Billing Specialist to all billing accounts who will work closely with the property managers to customize our billing software and processes to best fit your requirements. 


Compliance with Regulations

Developing the proper billing methodology for your property starts with making sure that it conforms to local regulations governing utility billing.  In general, we’ll make sure that the total utility charges for each tenant doesn't exceed the master utility bill for the property.  We’ll also check to insure that billing service charges conform to local requirements. 

 Master Utility Bills

Submeter Solutions will analyze the property’s master utility bill and tailor our internal billing software to emulate the same methods used by the utility company for each tenant.   Often we can use published rates from the local utility company or have the property’s utility bill sent directly to our office.   Our Billing Specialist will develop a plan specific to your situation. 

submetering calculation methodsCalculation Methods

Submetering calculation methods can vary for each utility and can include full capture submetered billing, or allocation based Ratio Utility Billing System (RUBS), or hybrid methods that combine metering and allocation formulas.   The most common methods include:

Full Capture Submeter Billing

Utility usage based upon the usage reading from a sub-meter. A sub-meter measures various utility usages such as gas, electricity or water for an individual tenant’s unit.


Utility usage based on any methodology by which the cost of a master metered or other un-metered utility service provided to tenants and common areas of a multi-unit building is apportioned to tenants through the use of a formula that estimates the utility cost of each unit in the building based on the number of occupants in a unit, number of bedrooms in a unit, square footage of a unit, or any similar criteria. Formula should be clearly stated to residents. 

Hot Water Allocation

Submetering can also be accomplished by using a hybrid of metering and allocation methods. One common example of this is a Hot Water Allocation (HWA) method.  A water meter is placed in each unit and the meter will measure the hot water that the tenant consumes.  The cold water usage is then calculated in proportion to the amount of hot water used.  The total water consumed by the tenant is the sum of the hot water usage and the calculated cold water.  The formula for the amount of cold water usage based on metered hot water usage is clearly stated.