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Network Charges From Eskom

By Coral Lewis on Fri, 26 Apr 2019 at 10:28

Question: who pays for electrical network charges when Eskom work out the the charge based on owners own usage and how to split ?

An owner of a house with an electrical supply, would receive a bill from Eskom for their usage and the network charge would be based on the home owners electrical usage. The home owner would pay for their electrical usage and the network charges.

If several owners live in a Sectional Title Block and they have their own meter which Eskom bill them directly for, the same would apply.

Unfortunately, our building was set up with one electrical meter for the entire complex of which Eskom send one bill for. The complex installed owners meters, read monthly, enabling the managing agent to bill the owner for their own electricity usage based on the one bill from Eskom.

The banding on the electricity bill (lower/upper) charged back to the owner based on % of overall usage for the unit. For Example - 2 units, unit 1 uses 60% of the entire electrical usage, they get 60% of the upper and lower tear whereas the other unit gets 40% of each.

Currently the entire Network charges are handed back to each owner based on their PQ, even though an owner with a low PQ may use more electricity than the onwer with a high PQ. The network charges are based on the owners usage plus a small amount of usage for CP.

The owner using the electricity has incurred network charges based on their own usage, therefore shouldn't they pick up the network charges based on their usage and not by PQ?

Does anyone else have a similar situation?

It would be very costly to all owners to have their own meter with Eskom.



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RE: Network Charges From Eskom

Murray Bennett replied on Sat, 27 Apr 2019 at 22:20

My opinion is that these costs are billed to the body corporate and passing those costs to owners based on PQ is correct. However, Section 11(2) of the Act makes it possible for the body corporate to make rules by which the liability of the owners to make levy contributions is modified by special resolution so that's a possibility.

RE: RE: Network Charges From Eskom

Coral Lewis replied on Mon, 06 May 2019 at 10:44

Interesting response.

Given that the electricity used for the common property is around 10% of the entire electricity bill it seems extreme that the entire network charges are split by PQ. If all units were the same size then this would not make any difference, but if the units differ in size i.e. 4% for majority and 20% for one other unit, then the unit with the 20% PQ would be picking up a proportion of what would in effect be the other owners network charges (11%-20% bit).

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