Metering

The Landlord must (where reasonably practicable) [at its own cost] install equipment (whether fiscal meters, sub-meters, check meters, automatic meter reading devices or other equipment) to measure the energy [and water] consumed at the Premises and the Landlord or its agents (or both of them) have the right to enter and remain on the Premises (with workmen, contractors, and necessary equipment) at reasonable times in order to carry out such installation works provided that installation of the equipment will not adversely affect the Tenant’s beneficial use and occupation of the Premises [to any material extent].

Where the Landlord installs meters relating to the Premises within the [Common Parts], the Tenant has a right to enter onto the parts of the [Common Parts] where the meters are installed at reasonable times to read the meters.

Where reasonably practicable the Landlord will ensure that all metering installed to measure the energy [and water] consumed at the Premises uses smart meter technology. which provide half hourly automated meter readings and facilitates communication to third party platforms and will take all necessary steps to ensure the Tenant has direct access to the data generated by the smart meter technology. 

The Landlord and the Tenant must notify each other as soon as reasonably practicable of any fault or disrepair of any equipment so that the appropriate party can take steps to remedy the disrepair or fault.

If the Landlord fails to install metering equipment following a request from the Tenant to do so the Tenant may install (at its own expense unless the Landlord is in breach of its obligations in clause [     ]) within the Premises equipment (whether fiscal meters, sub-meters, check meters, Automatic Meter Reading devices or other equipment) to measure the supply of energy [and water] consumed at the Premises provided that: 

• (a) the carrying out of such installation works neither impairs the continuity of supply nor has any long term adverse effect on the supply of energy [and water] to the remainder of the Building; 
• (b) the consent of the Landlord (if required under clause [the alterations clause]) is first obtained;
• (c) the carrying out of such installation works will not cause a breach of the terms of supply to the Building of energy [and water]; and
• (d) where reasonably practicable all meters installed shall use smart meter technology. which provide half hourly automated meter readings and facilitates communication to third party platforms and the Tenant will take all necessary steps to ensure the Landlord has direct access to the data generated by the smart meter technology.

Clause 5.5 of the MCL includes extensive entry safeguards which the Landlord must observe when entering the Premises including an obligation to give notice, to cause as little interference to the Tenant’s business as reasonably practicable, to cause as little physical damage as reasonably practicable and to make good any damage caused.

This provision should be inserted into the Sustainability schedule (Schedule 7) of the MCL. 

The starting point is that the meters are installed at the Landlord’s cost. However, the parties are encouraged to consider how the cost of metering should be dealt with. Direct metering will enable both parties to have a better understanding of the energy [and water] consumption at the Premises and this in turn should help them reduce consumption, leading to savings. On this basis sharing the cost of installing meters could be seen as a fairer position. The drafting does not include any provision for the repair of meters as this will be dealt with under the usual repair regime within the lease and you will need to consider whether the meters are part of the Premises or part of the Building Management Systems.

The drafting does not deal with metering of Common Parts or common services but the Landlord’s right to install such metering would not usually be restricted by any lease terms although this should be checked. 

Since the Landlord is under an absolute obligation to install energy [and water] meters (where it is practical to do so) the clause does not include a right for the Tenant to request meters although it does include a right for the Tenant to install meters. Where the Tenant exercises this right and installs metering equipment because the Landlord is in breach of its obligation to do so then the Tenant will be able to recover the costs from the Landlord because of the Landlord’s breach of its obligation. Where it is not practicable for the Landlord to install metering equipment, for example, the disruption would amount to a derogation of grant or the Landlord cannot obtain access to the Premises then the Tenant would install the meters at its own cost. 

If the obligation on the Landlord to install meters is diluted then you may include the following additional drafting. The Tenant may [choose one of these options]:

OPTION A Request the Landlord to install (at the Tenant’s expense) equipment (whether fiscal meters, sub-meters, check meters, automatic meter reading devices or other equipment to measure the energy [and water] consumed at the Premises. The Landlord must, where the installation is reasonably practicable, and the Tenant has made available the necessary funds, carry out or procure the carrying out of such works within a reasonable time and in a good and workmanlike manner. 

OPTION B Install (at its own expense) within the Premises fiscal meters, sub-meters, check meters, Automatic Meter Reading devices or other equipment to measure the energy [and water] consumed at the Premises provided that (a) the carrying out of such works will neither impair the continuity of supply nor have any long term adverse effect on any supply to the Building (b) the consent of the Landlord (if required under clause [the alterations clause]) is first obtained and (c) the carrying out of such installation works will not cause a breach of the terms of any supply to the Building.