May 2, 2026
The City of Toronto will soon be working to replace 470,000 Water Meter Transmission Units (MTUs) across the city after they were observed to be "failing earlier than expected", an official news release stated (1).
MTUs are small battery-powered devices attached to water meters that send water-usage data to the city for billing. If an MTU fails, the city stops receiving automatic water-usage information. Instead, a bill will be issued that is "based on a property's past consumption until an actual water meter reading is obtained or the transmitter is replaced," the release says.
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Manjit Dhuga is one of potentially many Torontonians whose water bills are affected by these failing MTUs and the estimated billing process. Dhuga, who is also a landlord, said that she was sent a "catch-up bill" in the eye-watering sum of $31,702 for the past three years, according to CTV News (2).
She was flabbergasted, telling the news outlet: "Something must be seriously wrong, because this is not the bill (I should be receiving).”
After receiving her bill, Dhuga hired a plumber to check if leaks were a likely culprit. None were found. She also contacted the Toronto water department to verify if the invoice was a mistake.
Following an inquiry from CTV News, the City of Toronto confirmed via a spokesperson that it had been in contact with Dhuga "multiple times" to explain the issue and give support. The spokesperson also revealed that while the water meter was working properly on her property, the MTU had failed, so she was billed based on "historical building estimates for nearly three years," bringing her bill in alignment with her actual usage.
"Once a manual reading confirmed the meter's accuracy, a one-time catch-up bill was issued to account for the difference between estimated and actual use," the spokesperson said, adding: "We are continuing to work with the property owner to set up a payment plan. Toronto residents can be assured they are not charged for more water than they use, and anyone with billing concerns is encouraged to contact 311 for support."
Following CTV’s direct communication with the city, Dhuga told the outlet a staff member from the water department came to her property and inspected the water meter. They found a problem and chose to replace both the water meter and the MTU.
Thankfully, Dhuga's bill was reduced by nearly $20,000, down to $12,403. While she was not pleased to pay the bill, she was satisfied with the outcome.
Three-year MTU replacement program underway
Beginning in April, 2026, the city has officially embarked on a three-year MTU replacement program, as these devices have been failing earlier than expected in municipalities throughout North America. As of fall of last year, the City of Toronto reported that over 70% of the city's 470,000 MTUs were failing, with 11,000 to 12,000 additional units failing each month on average.
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According to the city, customers that have a failed MTU are being "temporarily moved to estimated billing based on their property's historical water consumption data to ensure continued billing," the city's website states (3) — they will be notified of this change on their utility bill.
Customers will only see a difference between their estimated and actual water usage — potentially resulting in a catch-up bill — in one of three ways: by calling 311, reporting their water meter readings online (4) or having their MTU replaced.
After the MTU is replaced, the city will issue affected customers a "one-time separate bill" for water consumed up until the date of the repair — it should arrive within four to six weeks. All future bills regarding water usage will be based on actual water usage data.
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How you can avoid shock water bills
Unexpected water bills can upend your financial plans, especially if they are in the five-figure range. Here are some practical steps you can implement right now to help you handle the MTU replacement program and reduce your water bill in general.
Report your water meter reading
Calling 311 to report your water meter reading is the fastest way to get off estimated billing and back to bills that reflect your current usage. While there may be a catch-up bill that shocks in the meantime, the longer you wait, the larger the bill will become. Plus, Torontonians can set up a flexible payment plan for their updated water bill.
Check your water meter
A failed or dysfunctional water meter can also cause water bill spikes. If you have concerns your water meter may not be working properly, contact the City of Toronto at 416-338-1616 to book a water meter accuracy test. If it is found that your meter was overregistering your water usage, a credit will be applied on your following utility. Note that if your meter is found to be under registering water usage or working properly, you will be charged a meter testing fee on your next bill (5).
Check for water leaks
Routinely checking your water meter to determine if you have a potential leak is good practice to prevent unusually high bills. To do this, turn off the indoor and outdoor water use valves and watch the red triangle on your meter that measures water usage. If the triangle moves while the water is turned off, you likely have a leak (6).
Setup an emergency fund
If you aren't financially prepared for an unusually high bill, it might be time to start setting up an emergency fund. Not sure where the money might come from? Start by finding simple ways to reduce your monthly expenses in other areas, then set aside that money as though you are still paying those expenses. You'd be surprised at how quickly your savings can accumulate through minor adjustments.
How you can dispute your catch-up water bill
Disputing a water usage catch-up bill may seem daunting, but Dhuga's approach is a blueprint for Torontonians with failed MTUs. Those affected by a faulty MTU should contact the city for an explanation of their unusual bill right away. If they think the bill isn't fair, they'll need to review the facts about their water usage. That means checking for leaks that could have contributed to the increase and having a technician inspect their water meter to ensure it is reading properly.
If after disputing the issue, you're still faced with a major water bill, the City of Toronto has indicated consumers can go on flexible payment plans to pay off their bill. Making smart financial decisions like setting up an emergency fund or finding ways to trim your expenses can make all the difference.
Article Sources
We rely only on vetted sources and credible third-party reporting. For details, see our ethics and guidelines.
City of Toronto (1),(3),(4),(5),(6); CTV News (2)
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Brett Surbey is a corporate paralegal with KMSC Law LLP and freelance writer who has written for Yahoo Finance Canada, Success Magazine, Publishers Weekly, U.S. News & World Report, Forbes Advisor and multiple academic journals. He and his family live in northern Alberta, Canada.
