Whether you are a landlord or a tenant, you have to pay an electricity bill. This potentially boring subject is often overlooked, yet it can have financial consequences to both parties. With a basic understanding of tariffs and energy metering, the landlord/tenant billing landscape can be more transparent, ensuring that no one is over- or under-charged. You have the right to be on the best possible electricity tariff.
If you are investigating your billing landscape, the first place to start is to read your lease agreement to understand what was agreed upon with respect to the billing of electricity. As a tenant, you are allowed to be on the best available electricity tariff, which means that your landlord should be billing you in accordance with one of the local municipality’s electricity tariff structures. Conversely, landlords are also entitled to be billed at the best possible electricity tariff.
For example, a large office park in Cape Town receives its bill from the City, namely Large Power User Medium Voltage. The office park management company (landlord) bills its tenants on a different tariff that is based on each tenant’s size in terms of power usage. In this instance they are billed on the Small Power User 1 tariff scheme. Collectively, the monthly cost allocation for the tenant’s combined bills exceeds that of the bill received by the landlord, so the landlord is in essence making a profit. As long as the landlords and tenants are on the best available electricity tariff and are billed precisely according to these tariff structures, then this is legal.
Transparency between the landlord and its tenants helps to provide accountability. This can be achieved by independent energy measurement. With an online platform that is visible to both parties, there can be no disputing the bill. Online energy monitoring will make it easier raising the bill for tenants and also provides a means with which to do energy management to achieve savings across the board.
Check your bill today, and make sure you are on the best electricity tariff available. Call Power-Star for assistance.