Question:
In a free-standing unit complex, what is the correct way to calculate the water and lights when there is a municipality meter for the whole complex, but also for each individual unit?

We are having constant problems with these calculations as the body corporate keeps coming with different ideas every month.

Answer:
We need to distinguish two separate costs here. The first is the cost of the water and electricity that is used in connection with the common property and the second is the cost of the water and electricity that is used in connection with the individual sections in the scheme.

The bill for the water and electricity used in connection with the common property (which will be based on the readings of the municipality meter 'for the whole complex') must be shared amongst all the owners in the scheme.

This cost must be divided according to the participation quotas of the sections in the scheme unless the developer or the body corporate have made special rules in terms of section 32(4) of the Sectional Titles Act 95 of 1986 which varies the effect of the participation quota.

So, in simple terms, if no special rules have been made as to how communal costs are shared amongst the owners then the cost must be split amongst the owners in accordance with their allocated participation quotas.

The participation quota schedule can be found on the last page of the scheme’s sectional plan which is held in your local Deeds Registry.

The bills for the water and electricity used in connection with the individual sections must be paid by the owners of those sections.

If any of the supplies to individual sections is not separately metered, the owners can and should by simple majority vote at any general meeting instruct the trustees to install separate meters at the body corporate’s expense.

The whole point of individual metering of water and electricity is that owners in the scheme pay for the water and electricity that is consumed in their sections and therefore there should be no subsidization between the owners in respect of these costs.

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