By MidCity Utilities (Pty) Ltd
Historically, many Sectional Title Schemes have relied on bulk water meters, with the local municipality supplying water to the entire scheme and billing the body corporate accordingly. The total cost is then apportioned among individual owners, typically based on unit size (participation quota) or a predetermined usage in their levies.
The implementation of individual water meters within sectional title schemes introduces a more equitable and transparent system. Each owner is billed directly for their actual consumption, promoting accountability, encouraging resource conservation, and reducing administrative complexity and potential disputes.
In a sectional title scheme, communal areas such as swimming pools or irrigation systems can consume significantly more water than residential units. When contributions are calculated based on participation quota rather than actual consumption, this can lead to an inequitable distribution of utility expenses. Residential owners may end up subsidising the higher water and sanitation usage of communal facilities, as charges are linked to unit size rather than usage.
The introduction of water meters provides a fair and transparent solution. By separately metering each unit’s consumption, costs are directly allocated to the respective owner, ensuring that each pays only for what they use.
Installing water meters allows consumption to be individually measured and utility expenses allocated directly to section owners.
For the reasons outlined below, it is recommended that bodies corporate consider the installation of separate water meters as the most viable solution:
- High Installation Costs
Implementing a metering system can be costly, often requiring extensive replumbing throughout the scheme.
- Allocation of Free Municipal Water
The body corporate can rest assured that MidCity Utilities will ensure the kilolitres of water allocated by the municipality to each household are correctly assigned to individual meters. This is essential to uphold each owner’s constitutional right to access water.
What Is Legally Required to Install Water Meters?
- Special Resolution Requirement
Unlike the ordinary resolution needed for separate meters under PMR 29(3), the installation of a water metering system requires a special resolution, which involves a more rigorous approval process.
- Extended Notice Period and Disclosure
The body corporate must provide at least 60 days’ notice of the proposed resolution to all members. This notice must include full details of all installation costs as well as the projected impact on service charges over the next three years.
- Tenant Rights Compliance
Owners who rent out their units must ensure that the metering system does not infringe on tenants’ rights under the Rental Housing Act or any other applicable legislation.
- Limitations on Utility Disconnection
The body corporate is not legally permitted to disconnect water for non-payment of levies, as it is not the direct supplier. Doing so constitutes unlawful spoliation.
How MidCity Utilities Can Assist
We provide the following services to bring ease to bodies corporate:
- Installation of smart water meters – no access to units is required.
- Assistance with revised financing models.
- Recovery of costs over an extended period from residents or the body corporate.
- Contractor access for onsite inspections and quotations.
- Direct billing of end users for their own consumption, which reduces the financial burden on the body corporate.
- Risk reduction for the body corporate.
That is why you should consider making the switch to MidCity Utilities: