Rising Utility Bills Spark Concerns Over ‘Submetering’ Practices in Ohio
Table of Contents
- 1. Rising Utility Bills Spark Concerns Over ‘Submetering’ Practices in Ohio
- 2. What is Submetering and why is it Controversial?
- 3. Legislative Response and local Action
- 4. Industry Perspectives and Ongoing debate
- 5. What steps can Ohio renters take to avoid high utility bills caused by third‑party energy suppliers?#
- 6. Utility Middlemen Turn Ohio Renters Into High‑Bill Victims
- 7. How the system Works – and Where It Breaks Down
- 8. The Impact on Ohio Renters
- 9. Real-World Examples & Case Studies
- 10. Understanding “Utility-Scale” Energy & Its Relevance
- 11. Protecting Yourself: Practical Tips for Ohio Renters
Columbus, OH – February 9, 2026
Ohio renters are increasingly facing unexpectedly high utility bills due too a practice called submetering, where third-party companies resell electricity and water within apartment complexes.This emerging issue has prompted complaints to state authorities and fueled a debate over consumer protections and regulatory oversight. The practice of understanding energy bills can be especially challenging for renters navigating submetered systems.
Andrea Feagin,a resident of Columbus,Ohio,found herself grappling with a staggering $493.35 utility bill during a particularly cold winter. Her usage, reported at 2,206.77 kilowatt-hours for a one-bedroom apartment, far exceeded the national average of 899 kilowatt-hours per month, according to the U.S. Energy Information Management data published in late 2025.
What is Submetering and why is it Controversial?
Submetering involves a third-party company purchasing utilities from established providers like AEP Ohio and then reselling them to tenants. While initially intended to promote conservation by billing residents directly for their usage, the system has been criticized for a lack of clarity and potential price gouging, leaving many tenants vulnerable. Concerns have grown that some companies are inflating costs by adding considerable administrative fees and marking up the base utility rates.
According to data from the Public Utilities Commission of Ohio (PUCO),at least 555 complaints related to submetering were filed in 2025. Nationwide Energy Partners and american Power & Light received the highest number of complaints during that period.
| Feature | Traditional Utility Billing | Submetering |
|---|---|---|
| Billed By | Public Utility (e.g., AEP Ohio) | Third-Party Company |
| Regulation | Highly Regulated by PUCO | Limited or No Regulation |
| Price Transparency | Clear, Standardized Rates | Potential for Hidden Fees & Markups |
| Consumer Protections | strong Protections (e.g., disconnection rules) | Limited Protections |
Legislative Response and local Action
Ohio lawmakers are currently considering legislation to address the issues surrounding submetering. House Bill 265 proposed by Representatives tex Fischer and Sean Brennan, seeks to define submetering companies as public utilities, bringing them under the regulatory umbrella of the PUCO. A competing bill, House Bill 173, sponsored by Representative David Thomas, proposes registration and complaint procedures without full public utility status.
In December 2025, Columbus City Council took swift action by passing an ordinance to regulate submetering companies operating within the city limits. The ordinance caps administrative fees at $8 per billing cycle and prohibits charges exceeding those billed by the primary utility provider, offering a local layer of protection for renters.
Industry Perspectives and Ongoing debate
Fred Rice, owner of Spectrum Submetering, argues that the core concept of submetering—promoting conservation and fairer utility allocation—remains valid. However, he acknowledges that some companies have exploited the lack of regulation. Rice’s trade group, the Utility Management and conservation Association, reportedly denied membership to one Columbus-based submeterer due to questionable practices. Nationwide Energy Partners maintains that it adheres to state regulations, billing residents no more than comparable customers served directly by public utilities.
The debate centers around balancing consumer protection with the benefits of submetering, such as encouraging energy conservation. Experts note that the increasing financial strain on renters underscores the need for clear regulations and increased transparency within the industry. Do you think renters should have the same utility protections as homeowners? Are current regulations sufficient to protect tenants from unfair billing practices?
As the legislative process unfolds and local ordinances take effect, Ohio renters remain vigilant, hoping for a resolution that ensures fair and transparent utility billing practices for all.
What steps can Ohio renters take to avoid high utility bills caused by third‑party energy suppliers?#
Utility Middlemen Turn Ohio Renters Into High‑Bill Victims
Ohio renters are increasingly finding themselves trapped in a cycle of unexpectedly high utility bills, and a growing number of investigations point to a concerning trend: the rise of third-party energy suppliers acting as middlemen. These companies, frequently enough marketed as offering cheaper electricity or gas, are frequently leaving tenants with significantly inflated costs and complex billing issues.
How the system Works – and Where It Breaks Down
Traditionally, Ohio residents received their electricity and gas directly from regulated utility companies like AEP Ohio, Duke Energy Ohio, and Columbia Gas. However, deregulation of the energy market in the late 1990s opened the door for competitive retail electric and gas service. This meant companies could buy energy from the wholesale market and sell it to consumers, often promising lower rates.
The problem? Many of these suppliers aren’t actually generating energy.They’re purchasing it wholesale and adding a markup – and frequently enough, hidden fees. This is where the “middleman” aspect comes into play.
Here’s a breakdown of the typical scenario:
- Aggressive Marketing: Third-party suppliers aggressively market their services, frequently enough targeting renters who may not fully understand the complexities of energy choice. Tactics include door-to-door sales, phone calls, and online advertisements promising substantial savings.
- Variable Rate Plans: Many renters are unknowingly enrolled in variable rate plans. These plans tie the price of energy to fluctuating wholesale market prices. While rates can sometimes be lower, they are susceptible to dramatic spikes, especially during peak demand (like extreme weather).
- Lack of Openness: Billing statements from these suppliers are often confusing and lack clear breakdowns of charges. Hidden fees, such as early termination fees or administrative charges, are common.
- Limited Consumer Protection: Ohio’s Public Utilities Commission of Ohio (PUCO) offers some consumer protections, but navigating the complaint process can be challenging, and resolution isn’t always guaranteed.
The Impact on Ohio Renters
Renters are particularly vulnerable to these predatory practices for several reasons:
* Landlords Frequently enough Don’t Control Utility Accounts: In many rental agreements,tenants are directly responsible for paying their utility bills,giving them less leverage to negotiate with suppliers.
* Lack of Awareness: Many renters are unaware they have a choice in energy suppliers or don’t understand the implications of different plan types.
* Credit score Concerns: Some suppliers require credit checks, potentially excluding renters with lower credit scores and pushing them towards more expensive plans.
* Moving Complications: When renters move, they may be hit with unexpected early termination fees from their previous supplier.
Real-World Examples & Case Studies
The PUCO has received a surge in complaints related to third-party suppliers in recent years. In 2023 alone, complaints increased by over 40% compared to the previous year. Several high-profile cases have emerged:
* Energy Harbor (formerly FirstEnergy Solutions): Faced numerous complaints regarding misleading marketing practices and unexpectedly high bills. The PUCO investigated and imposed penalties.
* Frontier Energy: accused of enrolling customers in variable rate plans without clearly disclosing the risks.
* Numerous Smaller Suppliers: A pattern of smaller suppliers entering the market, aggressively marketing to renters, and then quickly exiting, leaving customers with unresolved billing issues.
These cases highlight a systemic problem: suppliers prioritizing short-term profits over long-term customer satisfaction.
Understanding “Utility-Scale” Energy & Its Relevance
While this issue focuses on retail suppliers, understanding the broader energy landscape is helpful. The term “utility-scale,” as it relates to solar and photovoltaic (PV) energy, refers to large, ground-mounted power plants. These plants generate electricity for the grid, and the energy they produce is then sold to suppliers who ultimately serve consumers. The complexities of this supply chain contribute to the lack of transparency renters frequently enough experience. Knowing where your energy originates doesn’t directly solve the problem, but it underscores the multiple layers involved in getting power to your home.
Protecting Yourself: Practical Tips for Ohio Renters
Here are steps you can take to avoid becoming a victim of predatory energy suppliers:
- Review Your current Bill: Carefully examine your utility bill for any hidden fees or unexplained charges.
- Understand Your rate Plan: Is your rate fixed or variable? If variable, understand how the price fluctuates and what factors influence it.
- Shop Around – Carefully: Use the PUCO’s Energy Choice
