Large Corporates
Rates, Electricity & Water Charges
Customer: Large corporate, renting a five–floor building
Contracted Venn to: Investigate all Municipal charges
A Meter Reading Agent employed by the landlord was incorrectly charging for five meter readings (one per floor), despite there being only one meter for the entire building.
The Meter Reading Agent was not applying the most cost-effective tariff and was over-recovering kWh consumption through incorrect tenant allocations.
The landlord’s rates-recovery percentage applied was inconsistent with the terms of the lease, resulting in an over-recovery.
Venn discovered that the municipal monthly water consumption of 200 kl was understated and should be 2 000 kl per month. The landlord and tenant thus had a potentially liability of approximately R1 million in unforeseen water and sewer back-charges.
Outcome
Electricity
The customer received a refund of R 560 000 from the Meter Reading Agent.
The electricity bill decreased by approximately R 36 000 per month.
Subsequent remote meter monitoring by Venn uncovered errors on two separate occasions.
Rates
The customer received a refund of R 160 000 on incorrectly charged rates as per the lease agreement. Monthly rates-recovery charges were reduced by R 14 000.
Water
The landlord was able to make provision for the potential back-charges by recovering charges based on actual consumption. The Municipality remains unaware of their under-billing.
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