Utility service charges

What to do when your water or electricity bill gives you a shock.

The scourge of inflated water and electricity bills has left many South Africans uncertain about their household budgets. Utility bills often differ from month to month, from being a reasonable amount to an excessive amount. In some instances, the amounts billed keep rising without any reasonable explanation regarding the calculations used to determine the amount owed.

An unusual utility bill may be the result of three possible reasons, such as:

>     averaged or estimated readings to determine the amount owed, but an overestimated amount is used leading to an excessive charge;

>     an incorrect amount was charged due to a billing or clerical error; and

>     a higher amount was charged due to a water leak on the premises or a faulty electrical connection.

Overestimated and incorrect utility bills

Service providers (which can also include the municipality) may sometimes use a meter reading system where they use estimated readings, rather than actual readings, to charge a consumer for water and electricity usage. Utility bills may also refer to the wrong amount due to an error, such as the wrong meter reading being captured or an administrative error.

If a consumer is charged an amount that seems excessive based on estimated readings, s/he may log a query with the service provider and request that they attend to the matter by taking an actual reading of the meter. There are also methods available to consumers where they can submit the meter readings themselves. For example, Eskom customers can communicate their electricity meter readings manually through the use of the MyEskom App or by making use of their online service. Municipalities may also make use of online services or an App to submit actual readings, for example, the City of Ekurhuleni has an App that can be downloaded and used. Enquiring about the different methods of submitting actual meter readings can help avoid future disputes.

High utility bill due to water leaks or faulty electricity connections

It is possible that a water leak can hike up a utility bill. Generally, the service provider owns the meter and water supply from the street to the meter, while the consumer/homeowner owns the pipes that connect from the water meter to the house. This means that in order to understand who is responsible for the extra water usage and the repair of the leak, the origin of the leak must be established.

It is the consumer's responsibility to investigate and stop a leak that occurs within the boundary of his/her property. If the leak originates from outside the property, the service provider must be informed immediately to avoid disputes and to limit the consumer's responsibility for the excessive water usage as a result of the leak.

Whether a refund is due to a consumer for wasted water resulting from the leak will be dealt with on a case-by-case basis. Certain homeowner's insurance policies may provide cover to allow for a refund where a water leak causes abnormally high charges for water consumption. This is not the case with every insurance policy and it is important to be informed about the contents of the insurance policy, where applicable.

In respect of electricity bills, the consumer will be responsible for a faulty electrical connection found on their premises, unless s/he provides proof that the faulty wiring is not due to their own fault. The consumer will bear the costs of correcting the electrical wiring or connection if the faulty connection is his/her fault, and the service provider may impose a fine for tampering with the electrical wiring.

It is a criminal offence to tamper with an electrical or water connection and can lead to a fine or imprisonment when found guilty.

Logging a query with the service provider or statutory body

If you suspect that your utility bill is incorrect, firstly check that the meter number on the invoice corresponds with the number on the actual meter and establish who the service provider is to understand with whom the query must be lodged.

When contacting the service provider to query the utility bill, record the name of the person assisting you and the reference number. It will be helpful to record as many details as possible, including the date of the call or meeting (if the bill is queried in person). To prove that a bill is not within a normal range, photographs of the monthly meter readings will assist.

Should the query remain unresolved after contacting the service provider, draft a formal complaint letter to the municipal manager or chief executive officer of the service provider. Provide a full and clear description of the problem in the letter and attach the evidence available.

The service provider will have to investigate the query and report back within their stipulated turnaround times. If the query still remains unresolved after lodging a formal complaint letter, further legal advice may be necessary to consider legal action being taken.

Where the municipality is the service provider, disputes may be referred to the relevant municipality's ombudsman if the dispute remains unresolved.

 In respect of electricity services, a dispute may also be referred to the National Energy Regulator of South Africa (“NERSA”):

>     Tel: 012 401 4600

>     E-mail: info@nersa.org.za

>     Information regarding the complaints process can be found on their website at www.nersa.org.za.

In light of the above, ensure that you check your bill for its correctness or reasonable estimates. If there is suspicion of a faulty meter or inflated utility bill, contact the service provider immediately to log a query. Once this has been done and the service provider fails to resolve the dispute, lodge a complaint with the relevant body.

Did you know…It is a criminal offence to tamper with an electrical or water connection and can lead to a fine or imprisonment when found guilty.