Edison would be proud.
Imagine being able to convert your existing post paid system in your complex to a pre-paid system at NO COST TO THE BODY CORPORATE/ HOA.
No upfront costs for either the supply or installation and an extended 5 or 10 year warranty for less than R80 per month.
With maintenance of the new meters included and a LOWER Management fee as well.
Sounds too good to be true doesn’t it?
Well, it isn’t.
VA Power has been making waves in the pre-paid world for some time now and are now able to deliver a turnkey solution for residential estates that makes it exceptionally cost effective for either full installation or takeover if existing systems.
Saving Energy spoke to Hannes Vermeulen and Steven Holdsworth about their solutions.
The first pre-paid nightmare – Installation .
If you have pre-paid you will know about the issues it brings.
Higher tariffs ,high management fees and sloppy service.
Up until now, there hasn’t really been an alternative to the mainstream services.
To install pre-paid into a new development or existing post paid system can be very costly with the meter alone costing between R900 and R1500 excluding the labour.
A complex of 500 units would have to fork out around R2000 per unit = R1 million to install and connect a full pre-paid system.
Then you need to find a service provider than can offer your residents easy and simple access to adding electricity and also ensure that an SLA is in place should any meters fail or develop operating faults.
Part 2 – Management fees.
The management fee is how service providers make their money and it works like this. For every KW bought by the residents from the service provider , they take a percentage of the kWh rate as a management fee.
Example of management fee structure on pre-paid electricity – 2017.
In this case, the management fee is about 10% – but this was 2017.
Three years on and those management fees have risen to about double. At the rate above ( and this was a summer usage not winter) the estimated fees for that year would have been around R450 000.
That is a BIG Whack of change to NOT have in the Body Corporate Coffers.
Taking over existing systems.
If there are existing pre-paid meters, the takeover is simple and seamless and the benefits are immediate. The lower management fee kicks in from month 1 and residents won’t even know they’ve switched over. All the resident would need to do is to punch a 16 digit flash code to their meter to move it across.
The takeover is also free from cost, with only the appointment process required .
Plus their 8% management fee also includes the maintenance side , so there would be no additional call out costs should a meter fail or become faulty.
Bear in mind though, that should it need to be replaced due to intentional damage, the cost there is about R690 – which is still cheaper than most.
The (not so) new kids on the block.
Comparing that with the offering from VA Power, the stats are staggering.
For the supply and installation, there is ZERO CAPEX and the service agreement is a 5 year deal. Having spent 2 years just fine tuning the model, Hannes and Steven have now created a proper solution where the Body Corporate / HOA does not have to SPEND A SINGLE CENT for supply or installation.
Not only that, but they fix their management fee at 8% almost HALF of the fee above – but in 2020.
This applies to pre-paid water AND Electricity!
With new installations, there is a R 50 (electricity) and R75 (water) monthly maintenance / insurance fee to cover failures and call outs to repair or replace faulty meters.
A complex of 500 units would save R1 million and pay half the management fees as well. Plus they also offer an analysis of the tariff and a possible reduction on the tariff IF the tariff has not been correctly applied for that property.
Smart meters and apps!
In addition , they have also created their own app to run their smart systems off so that residents can access their meters to recharge and analyze consumption.
The use of smart tech has revolutionized this industry and the advent greater smart phone penetration is assisting consumers to achieve greater understanding about the energy and water usage.
Start the conversation.
If you are a resident with post paid or a Body Corporate Member looking for ways to install pre-paid water or electricity with no cost, or looking at ways to recover more money on kWh unit sales at your complex, then just complete the form below to start the conversation.
With zero cost, lower management fees and proper service, VA is delivering a complete and exceptional solution and with growing confidence in their services from high profile developers and existing installations , it’s clear that there is a new Sheriff in the land of Pre-paid.
