Complex charging double electricity tariff

[superskully]

Hi All (hope i am in the right section).
There is this complex in Northriding, which is a rent only complex, meaning they don't sell.
My parents are renting here and on buying electricity for them (1st of the month), the tariff was around R3.70 per kWh.
On phoning the meter company, they stated they only add a 10-15% surcharge and they collect the money and handover to landlord who pay Eskom. They said it was business rates.
On querying the landlord (managing agent) they said the tariff is correct as its to cover their costs and its not business rates.
I still wanted an answer and advised them this cant be legal, they have not replied.

Any advice on this forum as surely this cant be legal, charging basically double the eskom tariffs.

 

[Mike Hoxbig]

Welcome to the land of middle-middle-middle-men, where if you're not getting it directly from Eskom, everyone gets a cut.

In complexes the chain goes something like this: Eskom -> CoJ -> contracted meter company -> possibly landlord.

It's been the case for a while now. Before purchasing/renting it's best to find out what the current prepaid rate is, and get it in writing...

 

[superskully]

Welcome to the land of middle-middle-middle-men, where if you're not getting it directly from Eskom, everyone gets a cut.

In complexes the chain goes something like this: Eskom -> CoJ -> contracted meter company -> possibly landlord.

It's been the case for a while now. Before purchasing/renting it's best to find out what the current prepaid rate is, and get it in writing...

That cant be right though, they are paying directly to eskom, if the meter company are taking 10%, the landlord are taking 90%?
Surely there must be some regulation on reselling or something like that.
Anyone had success with rental housing tribunal (Link)

 

[Sinbad]

Report them to nersa. They are not allowed to charge more than the regulated rate plus a small percentage admin fer

 

[Hamster]

Yeah, the landlord cannot charge you more and make a profit from it, but these useless middleman companies are a cancer you can do nothing about.

But if there is a meter company then most likely you are on prepaid though?

 

[superskully]

Yeah, the landlord cannot charge you more and make a profit from it, but these useless middleman companies are a cancer you can do nothing about.

But if there is a meter company then most likely you are on prepaid though?

Yep, the unit in question is prepaid and is for my parents where the tariff rate was R3.70.
When i phoned the meter company, they said they charged business rates and only add 10-15% (not 100%).

 

[Mike Hoxbig]

Yep, the unit in question is prepaid and is for my parents where the tariff rate was R3.70.
When i phoned the meter company, they said they charged business rates and only add 10-15% (not 100%).

Try and get it in writing from them what their actual tariff is for the complex. You've got a tariff and they're giving you a percentage. Unless you're speaking the same language, you won't know who to lay the blame at...

 

[Hamster]

Yep, the unit in question is prepaid and is for my parents where the tariff rate was R3.70.
When i phoned the meter company, they said they charged business rates and only add 10-15% (not 100%).

Yes, and some are even skelm and charge you 12% for EFT but 15% for a credit card payment.

So what (sometimes) happens is that the entire complex has an Eskom account to pay. The body corporate then uses a meter company to track and collect usage. The metering company assume the risk of collecting (hence prepaid, fees) and the body corporate is paid by them every month to settle their (the estate's) Eskom account.

 

[superskully]

Try and get it in writing from them what their actual tariff is for the complex. You've got a tariff and they're giving you a percentage. Unless you're speaking the same language, you won't know who to lay the blame at...

Thanks, good advice. They are being very distant when I ask them, maybe a threat of taking it rental tribunal might lite a fire.

 

[superskully]

Yes, and some are even skelm and charge you 12% for EFT but 15% for a credit card payment.

So what (sometimes) happens is that the entire complex has an Eskom account to pay. The body corporate then uses a meter company to track and collect usage. The metering company assume the risk of collecting (hence prepaid, fees) and the body corporate is paid by them every month to settle their (the estate's) Eskom account.

That’s exactly it. But there is no risk for them as it’s prepaid, right.
So it’s actually pathetic that they charging, I would say, low income earners, so much.

 

[Mystic Twilight]

They said it was business rates.

Just be aware on this part, if the zoning code for the area is zoned as business then the basic rates will be business rates before any other shenanigans are added on top. So at the least you are already paying more than residential rates by virtue of the zoning (this includes things like refuse collection, water rates, etc).