TORONTO - Energy ratings that would allow potential homebuyers to assess the energy costs of a property should be mandatory in Ontario, a Liberal backbencher told the provincial legislature Thursday.

The initiative, outlined in a private member's bill introduced by Phil McNeely, would be phased in over three years, starting in 2010, and apply to homes and small apartments.

A seller would have to get an energy rating report, informing buyers of the home's energy efficiency and allowing them to estimate the cost of energy.

"By measuring the energy rating, consumers will have the choice to weigh energy costs in that important purchase decision. Renters will have the option to also weigh energy costs into their choice," said McNeely, who represents Ottawa-Orleans.

"Builders of energy efficient homes will be encouraged to build even better homes. Builders of less energy efficient homes will have to be open to prospective purchasers."

Ken Elsey of the Canadian Energy Efficiency Alliance said the bill would create jobs, saving people money and help the environment.

Chris Chopik, a real estate agent and instructor for the Toronto Real Estate Board, said if passed, the real estate community would have a tool to educate prospective buyers about the importance of energy efficiency as costs continue to rise.

"Energy is the second price tag of every house," said Chopik. "The more that we can be doing today to improve the energy resiliency of Ontario homes, the more competitive Ontario will be in the future and the more valuable our housing stock will be."

McNeely said similar rules are being implemented in Nova Scotia and B.C. and are in effect in several U.S. jurisdictions.

He said he hopes to receive support from all parties in the Ontario legislature.

Private member's bills rarely become law.