Can a managing agent charge more than Ekurhuleni‘s rates, especially if this is applied for by the units in a complex?
Our body corporate has now passed this service onto a third party, who in turn bill us.
This was implemented on July 1.
Ekurhuleni is charging R1,17 plus vat which totals R1,32 and we are currently being charged R1,58 but it could change, we will hear this month.
Those on prepaid, are paying around R1,74.
Due to us being on a bulk meter, we cannot have the Ekurhuleni pay as you go meter, I do not quite understand this either.
Prior to July 1, our managing agent was charging us R1,95.
I enquired with a few individuals and they get charged exactly what Ekurhuleni charges.
EDITOR’S COMMENT – Spokesperson for the Ekurhuleni Metropolitan Municipality (EMM) Mr Samuel Modiba commented as follows:
EMM created a resellers tariff on July 1, 2012, where a body corporate, or similar residential reseller of electricity, is able to purchase Ekurhuleni-supplied electricity at a slightly reduced cost. Smaller complexes, supplied at low voltage levels, are able to buy in bulk at 2,5 percent below the EMM tariff, while larger medium voltage (11 kilovolt supplies) buy at 5 percent below the EMM tariff.
This step eliminated numerous complaints received in relation to demand-based charges associated with the previous tariffs applicable to resellers.
Although the EMM expects residential resellers to sell at R1,18 (VAT excluded), it is also understood that these resellers have administrative costs which cannot be recovered inside the rebates mentioned above.
For example, prepayment vending transaction costs are often higher than 5 percent of the value of the transaction.
It is therefore proposed that resellers show the following line items on their invoices:
- The fixed charge (derived from the EMM fixed charge of R217 for low voltage and R2 712, 50 for medium voltage supplies).
- The unit charge (R1, 18cents per kilowatt hour unit).
- An additional cents per kilowatt hour unit charge which is underpinned by a transparent cost-of-supply study, pointing out specific, acceptable costs incurred by the reseller.
This must be made available to a body corporate upon request.
The National Energy Regulator of South Africa is looking into the matter of resellers and is bound to provide guidelines in the near future.
