# Regulatory Compliance Category > Consumer Protection Act Forum > [Question] LANDLORD CHARGING UTILITIES

## Munirakil

Hi

my landlord charges us for utilities(electricity & water) as agreed. The utility account comes on the wife's name, however the husband does a calculation & gives it to us to be added to our rent when paying.

I have noticed that he's been overcharging and have brought it to the notice of both of them who then make up some story.

I have done a follow up with the municipality and had an accountant look at it who has done a calculation showing them owing me money.

I need to know what can I do as I don't want them to shut my utilities down

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## AmithS

What does your lease agreement say with regards to payment of utilities?

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## Munirakil

There is nothing regarding utilities just the amount set for rental.

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## AmithS

Does your section of the property have its own meter?

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## Munirakil

Only for electricity which shows on the account but there is a meter for water but that was independently put and does not show on the account. It only shows 1 meter reading.

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## Basment Dweller

Is this a sectional title property or freehold? 

Is the utility account (in the wifes name) a municipal statement or a statement from the body corporate?

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## Munirakil

It's freehold and on the wife's name, however when we have issues she sends her husband to discuss the issues.

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## Basment Dweller

Demand to see the original municipal invoice and make payment based of that?

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## Walrico

I live in a Garden flat in Riebeeckstad, I pay R4.42 per unit, where the rate is supposed to be R1.80 per unit. I phoned the meter compony Citi'q and asked them a few questions. They told me this rate is too much and the owner should phone them so it can be lowered. Someone told me there is a law that the landlord can't ask more than 10% of the rate ( 1.80 ). what can I do ?

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## AmithS

As far as I know there should be no markup on utilities unless it was specifically agreed to...

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## Justloadit

Is the landlord sending you an invoice, indicating the number of units used, and a charge per unit, or is he simply giving you a total of R XX.xx for electricity?

You can contact Nersa and lay a complaint. As per the previous post, no one besides ESKOM, the municipality or bulk seller has the right to mark up the electricity cost, as this is legislated.

From their manual referring to "Guide lines for Electricity Sale"

The reseller is not entitled to recover the cost of running their own electricity business through the charges that are made for electricity. 
These are separate from the resale costs  they are costs that the reseller incurs in maintaining their property and administering their own contracts with the end customers. 
These are not subject to the resale tariff.

The guidelines allow the following persons or businesses to be excluded from being regarded as resellers:
12.1. property owners who do not have a bulk point but supplies electricity to different units on their property;
12.2. property owners with tenants where the electricity portion is part of the fixed rental cost and no profit is made or where electricity is supplied as a community service; and
12.3. persons or businesses who rent at one site or to a defined group of customers, and who have no intention of expanding their electricity sales.

Laying of complaints

11. COMPLAINTS AND DISPUTE PROCEDURE
Between the Customer and Reseller
11.1. If the customer has a complaint about tariffs, billing or service quality, the customer should first raise their concerns with the reseller. If the complaint cannot be resolved, the customer may raise its complaint with the licensed authority. If the complaint can still not be resolved, the matter may be referred to NERSA.
11.2. The reseller must provide a complaint facility or service point for customers. The customers invoice or statement must contain the details on how to access the complaint facility or service point. The details should also be reflected in the service agreement with the licensed authority upon registration.
NERSA-467-58 GUIDELINES ON ELECTRICITY RESALE Page | 13
Between the Reseller and Licensed Authority
11.3. If there is a dispute between the reseller and the licensed authority, it should first be raised between the two parties. If the dispute cannot be resolved, the matter may be referred to NERSA.

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Blurock (26-Feb-19)

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## ians

> I live in a Garden flat in Riebeeckstad, I pay R4.42 per unit, where the rate is supposed to be R1.80 per unit. I phoned the meter compony Citi'q and asked them a few questions. They told me this rate is too much and the owner should phone them so it can be lowered. Someone told me there is a law that the landlord can't ask more than 10% of the rate ( 1.80 ). what can I do ?


I am starting to hear a lot of this kind of BS...the pre paid company should be charging the same as the municipality less their fee (10 %) ...bottom line if you buy R100 electricity ...you get R90 worth...i had a complaint a couple of months ago from a tenant who was being charge a 40 % fee...bottom line you need to be aware of the pre paid meter companies fee before you sign any documents.

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