|
|
THE DEPOSIT REQUIREMENT
Rationale & Authority
Impact Meter Services conducts an electricity/water meter-reading service with the aim
of recovering costs incurred by consumers for the electricity and/or water consumed at
their respective premises. In turn, Impact pays the electricity/water account for the
entire building/complex, in which such consumers are situated, to the local municipal
authority, which supplies the bulk electricity/water to that building/complex. Impact
Meter Services is therefore the supplier of electricity and or water to it's consumers.
Being an electricity / water supplier, Impact Meter Services prescribes deposits payable
by consumers before an electricity and/or water service will be supplied to a consumer.
Local municipal authorities generally require a deposit equal to twice the average monthly
consumption of water/electricity at a client's premises before they will supply a service
to such premises, and Impact Meter Services applies the same criteria.
The reason for this is that meters are read monthly and invoices generally reach our clients
approximately a month later. Invoices allow a period of grace for payment, which results in
most payments being received approximately two months after the actual consumption period.
This means that Impact is continually exposed to the risk of two full months of unpaid
consumption. As electricity/water is not supplied on credit, deposits which are more or
less equal to two months consumption, are held in payment of this unpaid period.
In the case where there is no historical consumption (such as new buildings), deposits are
calculated according to square meters of space occupied by tenants.
Significance of Deposits
Consumers will be reminded that the deposit payable for their premises forms an integral
part of the actual electricity/water account, and should not be seen as a separate entity.
This means that if a deposit it not paid in full, the electricity/water supply for the premises
in respect of which that deposit is required, can be discontinued even if the actual
consumption has been paid up to date.
Forms of Deposits
All deposits are required in the form of cash. Impact Meter Services may offer relief in
the form of equal monthly payments for larger deposits, although such arrangements are
totally at the discretion of Impact Meter Services and any such arrangement is made upon
the specific request of, and following negotiation with a consumer. Any such agreement must
be formalised in writing and is made without prejudice to Impact Meter Services.
Bank Guarantees
A small number of consumers are required to pay fairly large deposits due to the size
and nature of their business, e.g.; factories, chain-stores, supermarkets etc. In these
cases, Impact Meter Services once again applies the same criteria, as do local municipal
authorities. Should such a tenant not have the means to pay the full deposit amount in
cash, and only where a deposit exceeds R15000.00, Impact Meters will accept a minimum cash
deposit of R10000.00, and the remainder (R5000 plus whatever amount exceeds R15000) in the
form of a bank guarantee worded in favor of Impact Meter Services. Such bank guarantees are
accepted only with written agreement that the electricity/water account, in respect of which
that guarantee is held, will be kept current. Thereafter, if an account falls into arrears
(30 days or more), the agreement between Impact Meters and the consumer will be regarded as
having been dishonored. The bank guarantee will then immediately be redeemed at the banking
institution, which has issued that guarantee.
Increased Deposits
All deposits are continually revisable. Please refer to the standard terms and conditions
under the form folder
Minimum Deposits
A minimum deposit is payable in all instances, irrespective of consumption, and deposit
adjustments will only apply to accounts on which double the monthly consumption exceeds
the minimum deposit amount. Minimum deposits are determined according to criteria set by
the local municipal authorities and may be increased from time to time.
Deposit Refunds
Deposits are fully refundable when clients vacate their premises, but will only be paid
after the full balance of the final account has been deducted there from. The remaining
portion (if any) will then be refunded.
Conversely, should there still be money owing to Impact Meter Services after the deposit
has been credited to the account, the client remains responsible for that account until
it is settled in full.
Existing Deposits
Where consumers have existing deposits with other electricity management companies, or
with landlords in respect of their electricity accounts, the refund of such deposits to
consumers remains an issue between the consumer and the deposit holder. The stipulations
of the contract in terms of which the deposit was paid / is held will determine the method
and time frame whereby such deposit will be refunded.
Where such deposits are withheld or not refunded by the deposit holder for any reason
outside of contract, the consumers concerned are entitled to demand such deposit within a
reasonable time (4 to 6 weeks after vacating date is considered a reasonable time).
Should deposits not be refunded, consumers may resort to legal recourse to recover such
debt from the deposit holder.
Impact Meter Services remains neutral on these issues, and as a third party, cannot become
involved in such deposit recovery procedures. However, the consumer's claim to an existing
deposit with a third party does not constitute grounds to waiver the deposit required by IMS,
unless specifically agreed to as such with the landlord of the building / complex concerned.
Such agreement will be subject to the landlord supplying written guarantee / securities to the
combined value of the deposits required from the consumers who are to be excluded from the
deposit requirement.
SURITYSHIPS FOR NON-S.A CITIZENS AND MINORS
In an effort to be equitable and fair, the option is given to a non-SA citizen to provide Impact Meter
Services with a surityship signed by a South African citizen who can provide proof of income and who has
a permanent residential address within the RSA.
Persons willing to sign such a surityship should be aware that they will be held responsible for proper
and full settlement of the consumer's debt to Impact Meter Services, should such consumer not meet his
obligations in this regard.
Any person who is under the age of 18 years of age, and who wishes to enter into an agreement for the
supply of electricity/water to a premises with Impact Meter Services, is considered to be a minor. Such
persons are required to provide a surityship (forms available at Impact offices) from a person who is
18 years of age or older, who is a SA citizen, who can show proof of income and who has a permanent
residential address within the RSA.
Such consumers may at the time of their 18st birthday or thereafter request Impact Meter Services for
the return or annulment of such surityship, and enter into a new agreement in their adult capacity at
no extra cost to themselves with regard to deposit requirements.
Minors who are unable to provide a surityship may negotiate a service to be provided based upon an
increased deposit to be provided as security until such time as the consumer reached 18 years of age.
Such negotiation will be done at the sole discretion of the credit manager of Impact Meter Services.
[ top ]
|
