Eskom bills for complexes

[EmmaEssig]

Hi, we live as a tenant in a very small complex in the WC. We get our bill from our rental agent who in turn gets it from the BC.
We have 6 units in the complex. We realized that we are being charged the higher rate from the Eskom bill even though our usage of electricity is way
under 600KW. However we are being charged the higher rate. For examples, we used 250 units for the month yet we are being charged R2.34 for the first 100units and for the other 150units we get charged the higher rate of about R4.35. When we approached them we were told that the entire complex gets the first 600kw cheaper and thereafter we get billed the higher rate. So since we have 6 units, every unit gets the first 100kw charged at Eskom lower rate and everything else gets charged at the higher rate (which is basically double). When asked if this is legal they said that this is how they have been doing it forever. Eskom does read the main meter and apparently the BC reads our submeters thats how they know how many units we used.

Is this legal? Can they charge us the higher Eskom rate even if one used less than 600kw?

 

[Lupus]

Yes they can, the whole complex is billed as a whole, not individuals within it.

 

[EmmaEssig]

So even if we only get billed for our units we still need to pay the higher rate? That seems a bit unfair

 

[Ϲhristopher]

So even if we only get billed for our units we still need to pay the higher rate? That seems a bit unfair

Since the complex as a whole has a single account there will be a shortfall if everyone is billed at an individual rate.

 

[Cius]

So even if we only get billed for our units we still need to pay the higher rate? That seems a bit unfair

I have lived in a fairly well managed complex for a while. We get billed a flat rate for our electricity regardless of how many units we use. We also have an option to switch to pre-paid but then the rate goes up a lot. Similar in that the complex gets the bulk bill from Eskom and internal meters are read by the managing agent. Its fairly normal for a complex to calculate a simple recovery rate that covers the bill and make it flat rather than tiered as it gets very complex otherwise.

However the complex by law cannot make a profit off of electricity. They have to try as best as possible to recover exactly what you spend. So make sure in the complex financials they are not over-recovering on electricity. Common property electricity should be a separate line item on your bill.

The other thing is complex's are often not registered correctly with the municipality as a complex and the complex can be seen as a single unit and hence hit higher tariffs almost instantly. We had a managing agent take over about 6 years back who picked up that Angor had missed this and got it corrected and it brought our bill down a lot. For instance if you are seen as a single dwelling the complex as a whole hits max tier almost instantly. If you have 70 odd units however the limits should be scaled up by the ratio of the number of units as I understand it. So perhaps have that looked into to make sure the municipality has you registered as a an actual complex and you get that benefit at least.

 

[EmmaEssig]

Since the complex as a whole has a single account there will be a shortfall if everyone is billed at an individual rate.

but is that our issue? Our lease says we only pay for the electricity we use, surely everything else is not part of it?

 

[EmmaEssig]

I have lived in a fairly well managed complex for a while. We get billed a flat rate for our electricity regardless of how many units we use. We also have an option to switch to pre-paid but then the rate goes up a lot. Similar in that the complex gets the bulk bill from Eskom and internal meters are read by the managing agent. Its fairly normal for a complex to calculate a simple recovery rate that covers the bill and make it flat rather than tiered as it gets very complex otherwise.

However the complex by law cannot make a profit off of electricity. They have to try as best as possible to recover exactly what you spend. So make sure in the complex financials they are not over-recovering on electricity. Common property electricity should be a separate line item on your bill.

The other thing is complex's are often not registered correctly with the municipality as a complex and the complex can be seen as a single unit and hence hit higher tariffs almost instantly. We had a managing agent take over about 6 years back who picked up that Angor had missed this and got it corrected and it brought our bill down a lot. For instance if you are seen as a single dwelling the complex as a whole hits max tier almost instantly. If you have 70 odd units however the limits should be scaled up by the ratio of the number of units as I understand it. So perhaps have that looked into to make sure the municipality has you registered as a an actual complex and you get that benefit at least.

That's very interesting - yes i will have a look at that in more detail then. So we only get billed from our agent, literally that shows units used so for example 3020-3225 and then get charged accordingly. We then asked for the Eskom accounts which took 2 months to get from the BC and there we realized that we get charged the higher rate. So on our bill we only get the one line showing our electricity usage and the amount charged. The agent then send us the bill they get from the BC and there it just shows the levy used and electricity used for that time (which is the same as then on our bill) So nothing that shows the common property electricity. In our lease it states we only pay for electricity used by us, nothing about any additional usage. They have not been very forthcoming and this has been going on since May. They also said there was a shortfall as Eskom undercharged us so now they want to recover an additional 1500 for that. We just want to know if this is legal to charge us what they do and how they do it.

 

[Lupus]

but is that our issue? Our lease says we only pay for the electricity we use, surely everything else is not part of it?

Yes it is your issue, you live in a complex.

 

[Lupus]

That's very interesting - yes i will have a look at that in more detail then. So we only get billed from our agent, literally that shows units used so for example 3020-3225 and then get charged accordingly. We then asked for the Eskom accounts which took 2 months to get from the BC and there we realized that we get charged the higher rate. So on our bill we only get the one line showing our electricity usage and the amount charged. The agent then send us the bill they get from the BC and there it just shows the levy used and electricity used for that time (which is the same as then on our bill) So nothing that shows the common property electricity. In our lease it states we only pay for electricity used by us, nothing about any additional usage. They have not been very forthcoming and this has been going on since May. They also said there was a shortfall as Eskom undercharged us so now they want to recover an additional 1500 for that. We just want to know if this is legal to charge us what they do and how they do it.

You shouldn't be paying the levy, things like levy and rates and taxes is for the owners account. Tenants pay the water and electrical usage.

 

[Nerfherder]

Hi, we live as a tenant in a very small complex in the WC. We get our bill from our rental agent who in turn gets it from the BC.
We have 6 units in the complex. We realized that we are being charged the higher rate from the Eskom bill even though our usage of electricity is way
under 600KW. However we are being charged the higher rate. For examples, we used 250 units for the month yet we are being charged R2.34 for the first 100units and for the other 150units we get charged the higher rate of about R4.35. When we approached them we were told that the entire complex gets the first 600kw cheaper and thereafter we get billed the higher rate. So since we have 6 units, every unit gets the first 100kw charged at Eskom lower rate and everything else gets charged at the higher rate (which is basically double). When asked if this is legal they said that this is how they have been doing it forever. Eskom does read the main meter and apparently the BC reads our submeters thats how they know how many units we used.

Is this legal? Can they charge us the higher Eskom rate even if one used less than 600kw?

In this case they should just move everyone over to prepaid... because you are paying way more than you should.

It was fine in the past but now the prices have gone up and its just costing so much more.

 

[Lupus]

In this case they should just move everyone over to prepaid... because you are paying way more than you should.

It was fine in the past but now the prices have gone up and its just costing so much more.

But that won't change anything? Unless they get Eskom/supplier to do prepaids individiually.

 

[Mike Angelo]

Yes it is your issue, you live in a complex.

The joys' of complex living.

 

[Lupus]

The joys' of complex living.

Yup the joys

 

[isie]

Hi, we live as a tenant in a very small complex in the WC. We get our bill from our rental agent who in turn gets it from the BC.
We have 6 units in the complex. We realized that we are being charged the higher rate from the Eskom bill even though our usage of electricity is way
under 600KW. However we are being charged the higher rate. For examples, we used 250 units for the month yet we are being charged R2.34 for the first 100units and for the other 150units we get charged the higher rate of about R4.35. When we approached them we were told that the entire complex gets the first 600kw cheaper and thereafter we get billed the higher rate. So since we have 6 units, every unit gets the first 100kw charged at Eskom lower rate and everything else gets charged at the higher rate (which is basically double).

Honestly that is actually decent of them most complexes will just average out the total and charge you that amount per KWh