At last the Metro have come to the party and have lifted restrictions. Here is an issue which I feel may be of interest and a way which the Metro will exploit in order to generate extra revenue on water.
We now have a stepped tariff system. Great if we live in a world where the meter is read every month, not in Port Elizabeth where we often have estimates.
My predicted scenario is based on a Consumer using 25kl of water a month:
- Water Meter consumption reading in month 1 is 25kl, therefore pays 25 x R6.60 plus vat = R188.10
- Water consumption ESTIMATE in month 2 is 15kl, therefore pays 15 x R6.60 plus vat = R112.86
- Water Meter consumption reading in month 3 is 35 kl, therefore pays 25 x R6.60 plus vat = R 188.10 PLUS 10 x R8.27 plus vat = R94.28 (R282.38 in total)
Over three months he should pay R 188.10 x 3 = R 564.30 BUT, instead, is charged R 583.34.
So the client pays an extra R 19.04 because of the system. Imagine what the bill would be if the customer filled his swimming pool during the estimated period. Multiply this extra bit of revenue throughout the city. I have done this exercise in a number of different ways, in the end the client is screwed over. Once a penalty comes into play it can not be reduced by an under reading the next month.
It is my opinion that unless the metro can guarantee an accurate monthly reading they should not be permitted to charge a stepped tariff.
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Alan Straton
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