Farrell: Scrutinise your municipal account

GEORGE NEWS - The water rate increase that was implemented on 1 July is double the increase that was approved as part of the 2023/2024 budget - that is if calculated on the tariff as displayed on Georgians' municipal bills.

Dr Dennis Farrell, chairperson of the Business Café, has warned ratepayers to scrutinise their municipal accounts.

In an open letter to George Municipal Manager Dr Michele Gratz, he questions the tariff on ratepayers' water bills.

In the 2023/2024 municipal budget, the approved tariff increase for water is 11%, but Farrell points out that the rate on consumers' water accounts is double that - 24,43%. The previous book year's tariff was R19,44 and the new tariff is R24,19 (this does not refer to the penalty tariff for usage above 9kl).

The basic fee, a set amount paid before any water is used, is up by 25,32% (R111 to R 139,11).

These amounts exclude Vat.

According to Farrell's calculations, George Municipality owes ratepayers R2 802 467 per month, or in total R8 407 402 for the three months that the tariff has been implemented.

Smart meter leakages

Farrell is also upset about leakages that occurred when the municipality started installing smart water meters in Heather Park earlier this year. His property was one of the "test" sites where the new smart meter was installed.

He says that ratepayers were informed that the water meters use smart technology to measure water flow more accurately, which would enable remote readings to be taken for consumers' monthly water bills.

During the roll-out of the installation, there were however faulty devices, which resulted in serious water leaks. Farrell says that the municipality at the time admitted that 1 080 of the 1 161 installed meters were "problematic" and promised to remedy these. "Yet, despite the meters being replaced, the leaks and technical issues have persisted," he says.

Furthermore, on his September account, he was billed for 56 days of water usage (instead of for a one-month cycle) and as a result, he was charged penalty rates for excess usage. "Our account one-month average of 9kl per month jumped to 25kl in September, or an average of 13,18kl per month for the related billing period (July to September when the new rates were implemented)."

He says in May, instead of their usual 9kl usage, the account indicated a usage of 11kl, which was due to water leaks caused by the faulty smart meter.

"Moreover, if the September billing is calculated over 56 days (two months), shouldn't the free water credits be doubled from six to 12? And why are we being penalised at higher rates when the reading is over a two-month period and not averaged to a monthly cycle? There appears to be no smart integration of the monthly billing system," he says.

"If the 58 000 or more households in George have all been overcharged by higher-than-approved rates and over a two-month cycle billing, just imagine the municipality's overstated income at ratepayers' cost."

Issues with smart meters being addressed

Municipal communications head Chantèl Edwards says some residents faced difficulties during the implementation of the smart water meter project and these are receiving attention. "Following the replacement of the faulty MK1 meters at the expense of the manufacturer, leaks are no longer an issue."

Another challenge has been that in the month after the installation of the new meters, consumers' municipal accounts may reflect a higher-than-normal level of water consumption. "This is caused by the change in the meter reading interval period, from the old meters to the new meters. This issue will then stabilise in the months following thereafter."

She says the municipality will not automatically adjust the accounts of ratepayers affected by leakage due to the faulty meters. "Residents affected by any leakages will be treated on an individual basis and must report it to the finance department for correction."

Consumers are not billed double during the transition process to a new meter, but only for actual consumption, she says. The old meter reading is captured in writing and photographed by the service provider, prior to it being removed.

"Where the old meter was physically read every 30/40 days, the new smart meters record and update the finance division electronically on the 15th of every month. A number of residents are extremely pleased with the installations of smart water meters and are fully utilising the Ontec George Home App to access their water consumption on a daily basis. The letter writer is requested to make contact with our finance department to address his billing queries."

Edwards said municipal comment on Farrell's accusations of overcharging for water will be supplied by the end of the week.

Based on the assumption of this overcharge on the tariff, George Municipality owes ratepayers R2 802 467 per month for the three months during which the tariff was applied, or a total of R8 407 402, says Farrell.