Is Spar ripping me off on pre-paid electricity purchases?

GregH991

Active Member
Joined
Jul 6, 2017
Messages
33
Hey all,

On 29th July 2019 I purchased R1,500 of pre-paid electricity for my small business in Meadowdale, Edenvale. I noticed that of that amount, R1,350 went towards electricity and R150 went towards "Channel Fees (paid by tenant). Now my understanding is that this channel fee is a service fee charged, in this case by Karaglen Super Spar Edenglen for the service? If so, that means that a whopping 10% of this payment was taken by them. Is that normal? Is it even legal to charge so much?

I can't find much on 'channel fees" on the internet.

Thanks.
 

eg2505

Honorary Master
Joined
Mar 12, 2008
Messages
15,813
service fees, channel fees

one always pays this,

never found out if there a way to reduce this.
 

Scooby_Doo

Executive Member
Joined
Sep 4, 2005
Messages
6,324
Isn't the service fee to do with the provisioning of the electricity? The cost of which is determined by the amount/amps that is provided.

Try internet banking to buy electricity and see how much you pay. I only get charged R2 or R3 by FNB when purchasing electricity, usually R500 to R1000 at a time.
 

isie

Honorary Master
Joined
Jan 16, 2010
Messages
10,791
Hey all,

On 29th July 2019 I purchased R1,500 of pre-paid electricity for my small business in Meadowdale, Edenvale. I noticed that of that amount, R1,350 went towards electricity and R150 went towards "Channel Fees (paid by tenant). Now my understanding is that this channel fee is a service fee charged, in this case by Karaglen Super Spar Edenglen for the service? If so, that means that a whopping 10% of this payment was taken by them. Is that normal? Is it even legal to charge so much?

I can't find much on 'channel fees" on the internet.

Thanks.
Doubt it is spar -they get a commision paid for all sales and its linked to the provider so they can't tack anything on.
who is you electricity provider?
 

GregH991

Active Member
Joined
Jul 6, 2017
Messages
33
Yes, I plan to try using my internet banking app when I purchase my next voucher. I will purchase for the same amount and see if I get any more (or less) Kwh and what service fees are deducted. With the skyrocketing cost of electricity, an additional 10% paid just to get the voucher number is really unjustified.

The joke is that regardless whether I buy for R100 or R1,000 they take 10%? For doing the exact same amount of work?

I read some comments that prepaid is cheaper (and in my opinion it darn well should be!) but if my experience above is correct, prepaid is already 10% more than the "published fees"!!!
 

yebocan

Executive Member
Joined
Sep 22, 2005
Messages
9,424
Isn't the service fee to do with the provisioning of the electricity? The cost of which is determined by the amount/amps that is provided.

Try internet banking to buy electricity and see how much you pay. I only get charged R2 or R3 by FNB when purchasing electricity, usually R500 to R1000 at a time.
That crap they load on your municipal bill...currently it reads as sundries on my recent statement.
 

GregH991

Active Member
Joined
Jul 6, 2017
Messages
33
Doubt it is spar -they get a commision paid for all sales and its linked to the provider so they can't tack anything on.
who is you electricity provider?
I'm not sure who the provider is to be honest..... is there an easy way to find out? I think it is Ekurhuleni. The voucher says Tariff: za-Ekurhuleni-1kWh-2.9435F.... if that means anything?

Also, the Spar voucher has Blu Approved the Power of Prepaid.
 

RedViking

Nord of the South
Joined
Feb 23, 2012
Messages
20,832
As far as I understand they are not allowed to add any fees to it.
 

isie

Honorary Master
Joined
Jan 16, 2010
Messages
10,791
I'm not sure who the provider is to be honest..... is there an easy way to find out? I think it is Ekurhuleni. The voucher says Tariff: za-Ekurhuleni-1kWh-2.9435F.... if that means anything?

Also, the Spar voucher has Blu Approved the Power of Prepaid.
need to check their Tarrifs - not sure which one you are on though


https://www.ekurhuleni.gov.za/load-shedding-schedule/tariffs/tariffs-2019-20/3917-schedule-2-of-electricity-tariffs-2019-20-final-perc-14-05-19/file.html
 

isie

Honorary Master
Joined
Jan 16, 2010
Messages
10,791
Source?

Isn't Shoprite the best for this kind of thing?
Nersa


8.9. If the reseller charges customers a tariff that is higher than the approved tariff, the reseller may face civil proceedings for the recovery of the amount overcharged and may be required to pay interest on the amount overcharged.
 
Top