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Electricity billing

By Brian Blumrick on Fri, 24 Feb 2012 at 13:27

Our body corporate recieves the overall electricity bill. Each unit has its own internal meter. Each owner is then billed for:
Pro rata share of the Basic charges.
the units multiplied by the rate at the time. (we get a varied unit amount at different times of the year) In order to level the fluctuations as much as possible we charge slightly more than the average unit charge. any surplus at the of the year goes into surplus funds.
Question: is it legal for the body corporate to charge more than the unit charge from the municipality ?


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RE: Electricity billing

Carel Basson replied on Fri, 24 Feb 2012 at 14:59

If you charge more than what the unit's usage was for a specific month and then dump that part into the surplus funds , IMO it is not legal because it isn't BC funds.It is the owner's funds .
If you charge pro rata more on the basic charge ( common property bill ),IMO with the BC's consent it is legal.
In the latter instance , why not keep it in a seperate ledger account for ongoing purposes as set out in your posting ?

RE: RE: Electricity billing

Sonja Bennett replied on Wed, 29 Feb 2012 at 09:06

Hi Brian,
I work for a property owning company with 87 builings in JHB.
Here's the thing: You can't charge more for electricity than you are buying it for.
We charge a meter reading fee of R50 (ex VAT) to recover common area use.

1. Cost of the meters
2. Cost of installation
3. Cost per kwh is 30% more than conventional supply from your local council.
4. When the purchasing system is down, your occupants won't be able to buy electricity (remember the Eskom fiasco in December?)...Show More

RE: Electricity billing

Peter Vickery replied on Fri, 24 Feb 2012 at 16:42

Hi Brian - in most cases such as yours, the BC or the MA - whoever does the meter reading and billing - usually charges a meter reading charge and an admin fee for generating the individual accounts - this may be the way to go.
A far better solution would be to install pre-paid meters as it would solve a lot of hassles/extra work and of course the residents would be charged at the correct rate and also have the option of 'loading up' before any tariff hikes!

Regards...Show More

RE: RE: Electricity billing

Julie Steffers replied on Sat, 25 Feb 2012 at 19:27

Hi Peter, do you know of any companies that install pre-paid meters?

RE: RE: RE: Electricity billing

Thomas Groenewald replied on Sat, 25 Feb 2012 at 22:37

Julie, The Meter Man has a proposal for body corporates

RE: RE: RE: RE: Electricity billing

Julie Steffers replied on Tue, 28 Feb 2012 at 13:11

Thanks Thomas and Peter

RE: RE: RE: Electricity billing

Peter Vickery replied on Sun, 26 Feb 2012 at 17:06

Hi Julie - there are numerous companies that offer this service - but your local municipality may be the best way to go. It costs a few hundred Rands per meter and they usually want to convert the entire complex, but go in to see them and ask?
For the long term, this is definitely the answer, as people tend to be aware of how much they use when having to top up every month or so - and of course for the municipality no more meter reading and accounts.

Regards...Show More

RE: RE: Electricity billing

Thomas Groenewald replied on Sat, 25 Feb 2012 at 22:34

Take note of concerning pre-paid meters.

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