Redistributors of electricity urged not exceed approved tariffs – CoE
The rate applicable per kWh unit must be at the tariff applicable in terms of the tariffs of the city and not exceed the amount the purchaser would have paid.
The City of Ekurhuleni recognises the essential role played by the electricity vendors in reselling electricity to consumers in mainly sectional title properties, security estates, group housing developments and apartment buildings.
However, overcharging practices are discouraged.
The spokesperson for the CoE Zweli Dlamini said the city’s electricity supply by-laws prescribe that in incidences of bulk supply to properties described above, each purchaser be metered through a sub-meter approved by the South African Bureau of Standards (SABS).
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He said the rate applicable per kWh unit must be at the tariff applicable in terms of the tariffs of the city and not exceed the amount the purchaser would have paid if the purchaser was a direct consumer of the city.
“When a property owner intends to supply electricity to a residential unit within an apartment block, they must engage a service provider to manage billing, connections and handling complaints,” said Dlamini.
“This service provider must have a contract with the apartment block’s body corporate and procure electricity from a licensed distributor on the body corporate’s behalf.”
Dlamini said the body corporate itself must have direct contact with the licensed distributor for electricity.
He said when a property owner plans to resell electricity to residential tenants within an apartment block, the owner will have to manage billing, connections and complaints.
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Electricity will be purchased from a licensed distributor and sold to tenants.
The contract with the licensed distributor will be in either the property’s or the owner’s name.
When a body corporate intends to supply electricity to residential standalone houses within complex, they typically delegate billing services, connections, and complaints handling to a service provider.
The service provider then holds a contract with the body corporate and purchases electricity from a licensed distributor on their behalf.
“When a property owner plans to resell electricity to businesses within a block of flats or a shopping centre, to facilitate this, the property owner will have to delegate billing services, connections and complaints handling to a service provider.”
“This service provider will hold a contract with the property owner and will purchase electricity from a licensed distributor.
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The CoE discourages illegal connections, meter bypassing and token bridging.
Not only does this compromise utilities’ financial integrity, but it also poses risks to safety, service reliability and economic stability.
“Illegal connections and electricity theft lead to frequent power outages, straining the city’s resources and delaying service to legal electricity users. Despite the known risks, many persist in illegal connections.”
Residents are encouraged to report any illegal connection or suspicion of illegal connection activities through the municipal call centre on 086 054 3000.
