Molly Fadden, a resident of Columbus, Ohio, was shocked when her water bills for her two-bedroom apartment began soaring unexpectedly last fall. Her charges escalated from $157 in October to an astonishing $1,469 by January, with a threat of electricity disconnection if she failed to settle over $3,000. Despite being informed of a leak, she saw no signs of damage. This financial strain forced her to use savings as a mere credit of $465 from the property manager wasn't sufficient. The apartment's manager abstained from commenting.
By July, an additional $1,800 bill loomed over Molly with another disconnect warning, leaving her feeling bullied into payment due to her responsibility towards her children. The bills stemmed from Nationwide Energy Partners, a submetering company managing utilities in her complex, not from Columbus's main utilities. Submetering businesses have arisen in Ohio, with companies like NEP operating behind the scenes in apartment complexes, often leading to tenant complaints of unpredictable bill surges, sometimes including shared area charges.
Tenants find themselves trapped in leases in submetered units without transparent terms, facing disconnection threats. Such practices are common in Columbus, with NEP serving around 50,000 customers, including over 30,000 in Ohio alone. These submetering firms remain unregulated as of a 2023 Public Utilities Commission of Ohio decision, which ruled they do not qualify as public utilities. This deprives customers of protections like bill scrutiny and disconnection rights provided to regulated utility customers.
For Ohioans like Kenyonna Groves, this can mean significant hardship. Groves, living in a submetered apartment, saw her bills skyrocket and faced multiple power shutoffs. With limited relief from federal assistance programs not applicable to submetered setups, she is seeking alternative housing. Submetered tenants consistently report being gouged, often facing huge bills without using that much energy. Scott Wallace, another victim, pays exorbitant charges and describes the situation as predatory.
Despite companies claiming charges are akin to traditional utilities, many tenants suspect otherwise. Utilities vary with complex electric systems necessitated by modern complex designs which drive costs higher, affecting tenant perceptions further. While representatives of the companies avoided commenting, NEP dismissed claims of overcharging and suggested leaks were the landlord's concern. The legal landscape remains complicated, with courts denying appeals against the PUCO ruling, underscoring the difficulty tenants face in challenging submetering practices.
This ongoing battle for regulation and transparency highlights a growing issue as submetering practices expand, affecting more Ohio residents and eroding consumer protections typically enjoyed through regulated utilities. Tenants continue to fight for fair treatment, navigating an unregulated system that leaves them vulnerable to unexpected and often unaffordable utility bills.
