Capetonians want prepaid meters

Capetonians want prepaid meters

Category Property News

PREPAID electricity and water meters are fast becoming nonnegotiables in Cape Town homes with applications pouring in from residents wanting to convert from credit systems. The City of Cape Town is encouraging this switch and has even made it mandatory that all new dwellings have prepaid electricity meters installed. It also has meter replacement programmes in neighbourhoods to swop credit meters for prepaid. "Eventually everyone in the city will be supplied with electricity via a prepaid meter" says Xanthea Limberg, mayco member informal settlements, water and waste services, and energy Although the city does not supply prepaid water meters, Limberg says its electricity metering policy is "proprepaid"."We are currently experiencing an increase in applications for conversion to prepaid meters from property owners in the residential and commercial sectors that are still metered via credit meters, especially from those who rentlet or lease out properties, those who want to sublet, or those who simply want to budget more effectively and not be surprised by large accounts." She says residents with electricity prepaid systems can save 10% to 15% on their electricity bills, which is why most requests for installation of prepaid systems are made. Even residents who don't want to make the switch will eventually have to, as per the city's meter replacement programme. Limberg says any credit meters that have malfunctioned or are at risk of malfunction because of age are being replaced with prepaid meters at no cost to residents. A schedule has been drawn up to attend to each neighbourhood in the city, but residents can request earlier conversion. "If your neighbourhood is only scheduled for the following year, you can request an earlier date. However, fees will apply as this will be considered an ad hoc replacement. A conversion fee of R941 will be loaded on to the prepaid account as Types of supply: A house with one dwelling and one municipal bill is under the jurisdiction of the municipality A complex residential, commercial or industrial with bulk supply meaning there is one meter supplying the entire complex, has submeters. Submetering falls under independent metering providers. Processes to follow: Municipal process: 1 The consumers must find out if their municipality provides prepaid meters for the utility requested. 2 If the municipality does supply these meters, the consumer must apply for the meter at their municipality 3 They will need to pay all outstanding bills to date, preferably by the day of application. If they have outstanding accounts, some municipalities will not take their applications. 4 The meters and installations must be paid for. Each municipality has different prices. The City of debt and the funds will be recovered as a percentage of the customer's electricity purchases." Application forms and links to the schedule and procedures can be found on the city's website. Limberg says: "There are currently 523 000 prepaid meters in operation as opposed to 95 000 credit meters. Areas where the credit meters are located are being tar Cape Town's processes and forms can be found on its website. 5 The municipality will follow its own timelines for installation. 6. Once the meter is installed there may be double billing until the account is finally closed. This is common in Joburg due to the paper work that needs to be finalised and the departments that have to approve closure of the account. It is a long process for the municipality Submetering 1 The body corporate must have a resolution to move to prepaid. 2 The body corporate or managing agent must get quotes from private companies. 3 The relevant body must choose a provider. Though submetering is faster and easier, it is far more complicated because: The provider must have a good reputation. The provider must comply with the regulations. Most companies do not know what regulations to geted by our meter replacement project and the uptake in these areas is high so much so that we had to create a special addon to the programme to cater for customers who did not want to wait for the project to reach their area." She says the rollout of prepaid meters protects the city and other residents from those who run up accounts they cannot pay, and this comply with and most body corporates are unaware of how to check their compliance. The provider's systems must comply with regulatory requirements. Knowing the regulatory environment is one thing, having the systems and ability to comply is a different story The supplier must recommend the correct equipment based on the customer's infrastructure, usability regulatory compliance and previous and future compatibility The best private metering companies will ask of questions to ensure they provide the right system. If they do not do this before sending you a quote, you should avoid them. While the municipal process is out of the consumer's hands and they have no choice in the systems they get, the submetering process is risky as consumers can make the wrong choices, particularly in buildings with multiple units. Source: Karen Wheller, PrepaidMeters. co. za is why the replacement programme will be rolled out "as far as possible". "These unpaid debts must be serviced by the rest of the customer base via increased tariffs. Credit meters currently in operation are reaching the end of their useful life, and are in need of replacement." In addition to saving on their electricity bills and avoiding incorrect Getting prepaid electricity meters for a complex is trickier than for an individual house. billing, Karen Wheller, chief operating officer of PrepaidMeters.co.za, which supplies prepaid electricity and water systems throughout the country, says residents want prepaid meters to have more control over their use and budgets. This is why people also want prepaid water meters, particularly in Cape Town amid the water crisis. "In Cape Town people need to ESTATE agents are witnessing an increasing demand for prepaid electricity meters as residents look for increased control over their consumption and bills. In Cape Town many home owners are letting their homes or selfcontained flatlets, and splitting electricity consumption between them, says Michael Bester, senior partner at Tyson Properties on the Atlantic Seaboard and in the City Bowl. "Prepaid meters help when renting out one or two sections independently of one another" he says. Although many properties already have them installed, new owners of properties are also asking for them. In the southern suburbs, Noordhoek and False Bay, landlords and homeowners are also increasingly opting for prepaid meters, says Lorraine Dellbridge, rentals manager in those areas for Lew Geffen Sotheby's International Realty be very careful with water to avoid penalties for high consumption." Provinces are, however, at different stages in the cycle of adoption. Wheller says Joburg is known for its desire for prepaid meters. But different properties need to follow different processes for conversion to prepaid meters as this depends on how each is connected to the main utility supplier. "We don't as yet have prepaid water meters lthough there are meters which measure consumption, and this is a good way to fairly split the bill on properties with multiple dwellings." With prepaid meters, if tenants do not put funds into their meters, they will not get the service. This prevents abuse. "It also gives landlords peace of mind." In addition to residents being able to control their utility spending and use, they can also top up their accounts via their cellphones, says Michela Soukop, national rentals manager for the Soukop Property Group. They can also buy electricity at supermarkets. Soukop says although the process through a private vendor is quick, residents needing meters from municipalities can wait up to a year after application to see them installed. Quick facts ALL PREPAID meters are installed by the city, but the property owner is responsible for any preparation work required to house the meter andor user interface. Prepaid electricity meters are built to specifications by external companies. These meters are tested twice against specific national standards before they are installed at a customer's premises— once by the manufacturer before delivery and again by the city on delivery. Source: City of Cape Town Level 5 limits a challenge for sectional titles ENFORCING the new Level 5 water restrictions imposed by the City of Cape Town is of "utmost importance" for sectional title body corporates, but is difficult to do without subwater or prepaid water meters. Trustees need to establish other ways of monitoring residents' usage or face huge fines if units go over the 20 000 litre monthly household allowance, says Michael Bauer, general manager of property management company IHFM. The city says it will impose fines from R5000 to R10 000 a month if water use exceeds the allocated amount, and these fines could financially cripple body corporates. The sliding scale on which water is billed should be enough of a deterrent to overusage, and unit owners or tenants are urged to implement water saving practices, Bauer says. He offers these tips: Repurpose grey water from showers and basins into toilet cisterns for flushing. Water plants with water used to cook vegetables. Shower for only two to four minutes. Only wash clothes when worn more than once. Bauer says multistorey buildings that do not use pumps and overhead tanks as required by the city's building regulations may experience supply problems due to the reduction in water pressure. Residents are encouraged to approach their body corporates or managing agents to ensure these systems are in place and operational. Bauer says residents of multiunit buildings are also advised to always have two to five litres of emergency water on hand. "We all need to pull together to stick to the 87 litre allocation per person per day or face dire consequences later in the season. A handy calculator at http:mycapetownneeds.co.zathinkwatercalculator.html can be used to help people calculate what they are using daily" Bauer says. 

Author: Lew Geffen Sotheby's International Realty