richjdavies
Expert Member
- Joined
- Sep 9, 2013
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That approach isn't legal... Just so you know! But this is SA, so most don't follow the law!You are paying the proper rate, but you're also paying the connection and network fee that is being split between your units. R3.88 isn't far off the R3.03 from City Power for the first 350 units and it goes up to about R4 for every unit after 500.
The only legal way for resellers is to charge as if they are directly connected and then manage the fixed costs (which are normally less so there is margin rather than loss here), with levies etc if required.
Normally there is margin for a properly managed site...
Simplified example - being on a commercial tariff with R5000 fixed fee and R3/kWh* vs. each apartmrnt being on R300/month and R4/kWh...
If there's 10 units on site that's going to be difficult, if there's 100, then it's easy money!
* in reality commercial tariffs are more complex with Time of Use and High and Low season and Kva charges etc +-- which being standard grade maths, means for most managing agents it's waaaay above their abilities to manage.
