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Sectors — Retail, Malls & Property

You pay for the whole building. You recover what you can prove.

A landlord settles one invoice for the main incomer and then has to divide it among tenants, common areas and their own account. Every unit that cannot be attributed is unrecovered income, and every attribution that cannot be evidenced is a dispute waiting to happen. Metering turns the division into arithmetic.

The division you already make every month

The main incomer equals tenant feeders plus common areas plus unaccounted consumption.

Two of those three terms can be recovered. The third is the one most landlords cannot put a figure on.

Where the main incomer actually goes

Every kilowatt-hour on your utility bill ends up in one of three places. Two of them can be recovered. The third is the one you are currently paying for without knowing its size.

Main incomer — the utility invoice

Tenant feeders

Recoverable

Consumption that belongs to a specific unit and can be recharged to that unit with a reading behind it.

Common areas

Recoverable through service charge

Lifts, pumps, car park and external lighting, security and mall HVAC. Legitimately shared — but only defensible as a service charge if it is measured rather than apportioned by assumption.

Unaccounted

Not recoverable

The remainder. Bypassed connections, a unit fed from the wrong board, a tenant fit-out wired into a landlord circuit, or plant nobody has identified. This is the landlord’s loss in full.

The three destinations are fixed; the proportions are not. Establishing what your building’s split actually is, is the first thing sub-metering does.

What measured apportionment changes for a tenant

Sub-metering is often introduced as a way to catch tenants. It works far better introduced as a way to stop overcharging the quiet ones.

Under an apportioned service charge, a small shop with a till and two lights subsidises a restaurant with cold rooms and extraction. The restaurant is not doing anything wrong; the allocation method is. Tenants generally understand this the moment it is put to them, and a landlord who can show a reading is in a materially stronger position at renewal than one who cannot.

The same visibility protects tenants from being billed for a common-area cost that has quietly grown, and protects you from carrying a cost that was never yours.

What you have on billing day

The point of the installation is what happens at the end of each month.

  1. Read

    Consumption per tenant feeder for the billing period, taken from the meter rather than reconstructed from an estimate or a previous month.

  2. Allocate

    Common-area consumption for the same period, ready to apportion on whatever basis your leases specify — floor area, unit count or an agreed formula.

  3. Reconcile

    Tenant total plus common area set against the utility invoice for the incomer. Whatever does not reconcile is the unaccounted figure, and it is now a number instead of a suspicion.

  4. Evidence

    When a tenant queries a charge, the interval data for their own feeder answers it — usually in one conversation, and usually in the tenant’s presence rather than by correspondence.

Common areas are where a landlord’s own savings live

Tenant consumption is recovered. Common-area consumption is either recovered imperfectly or absorbed. It is also the part of the building you alone control, which makes it the part where an efficiency measure translates directly into margin — and in malls and mixed-use property these loads run long after the last tenant has closed.

Second term of the division, expanded

Common areas

Lifts and escalators
Run-hours set against trading hours, and movement recorded after the last unit closes.
Water pumping
Booster and borehole pump cycling against the building’s actual draw — the measurement a leak or a failing float switch shows up in first.
Car park and external lighting
A fully schedulable load, frequently on a manual switch with no named owner, recorded hour by hour.
Mall HVAC and ventilation
Central cooling and car-park ventilation measured against trading hours rather than against a default schedule.
Security and standby
CCTV, access control, and the generator that carries the whole property when the supply drops.

Common-area subtotal

Recoverable through the service charge to the extent it can be evidenced. Absorbed by the landlord to the extent it cannot.

Every one of these sits on a landlord circuit, which is why the schedule behind it is yours to change and the cost of leaving it alone is yours to carry.

Two things the landlord owns that the meters price

The roof

An asset you already own, priced by the load underneath it

A mall is one of the better solar propositions in the country, because trading hours and generation hours are almost the same hours. But the array is worth what the daytime load under it can absorb, and that number belongs to the common-area meters and the tenant meters together — not to the annual bill.

The recovery question follows immediately. What the landlord self-consumes in common areas is a direct saving; what tenants draw is already recovered through their feeders. Until the two are separated, a business case is being written against a figure that belongs partly to somebody else.

Solar project development

When someone else asks

A dated study

Service-charge reviews, a refurbishment, a sale or a refinancing all want a position on the building’s energy performance at a point in time, signed and referenced. That is a study, not a subscription.

A temporary measurement campaign across the incomer, the common-area boards and a representative sample of tenant supplies produces the record, and the report states what it was measured with and over what period.

Energy audits

Find out what your building is not recovering

An assessment traces the distribution from the main incomer outwards. It ends with three things you do not currently have.

Where the boards stop matching the leases
Each tenant feeder traced back to its board and set against your lease schedule, so a unit fed from the wrong circuit is found on site rather than argued about later.
The metering points that close it
Named per unit and per common-area board, with the meter tier chosen against the current rating of each circuit rather than against a package.
What it will take
The meter and sensor count, three current sensors to every three-phase meter, fixed before anything is quoted.