Real Estate Investor Magazine South Africa May/June 2019 | Page 21

E
ven the simplest smart water management device
can provide the tools to track and control water
usage. But it’ll be a while before every South Af-
rican household is able to benefit from this enor-
mous potential.
You already know that we live in a water-stressed country,
receiving an annual rainfall of 492mm, while the rest of the
earth receives 985mm.
In addition, cautions the WWF, 98% of South Africa’s
water has already been allocated to users, leaving little surplus
water to cater for a growing population and increasing demand.
In this context, could it be that prepaid water – like
prepaid electricity – is the answer to more sustainable water
consumption and management?
Well, we at Utility Systems believe it is. But there are 5
important things that South Africans need to know about
installing prepaid water meters.
1
What is ‘prepaid water’?
Prepaid water means that the consumer purchases
water credit in the form of a prepaid water token.
When entered into the User Interface Unit (located in the
consumer’s home), the token instructs the water management
device to allow a certain amount of water through the meter
before closing.
Consumers can track usage, load credit remotely, and
decrease the possibility of bill shock due to leakages or
incorrect monitoring.
A prepaid water meter can also be used to limit water
flowing to a particular area. This helps municipalities and
property owners to control the amount of water used at certain
outputs and prevents wastage in low-income households that
can’t afford to pay for excess use of this basic need.
They can make payment in smaller, frequent
increments. This prevents their falling into debt,
which can compound in a post-paid arrangement.
2
Who can access it?
This is completely dependent on the municipality. So even if
you’re feeling inspired to install a smart water management
device to enable prepaid water, you may not be able to – based
on where you live or work.
That being said, most municipalities are beginning to
embrace prepaid water management technology. So, it may
just be a waiting game. To find out your eligibility for prepaid
water, it’s wise to approach your municipality and ask.
If you have a garden cottage, however, you can add an
additional meter and smart water management device to the
building, to ensure that your tenants don’t rack up huge bills in
your name - and then refuse to pay, or leave.
3
How does it affect rental properties
and body corporates?
The implications for rental properties and body
corporates are significant.
Prepaid metering reduces admin to a minimum, while
removing the risk and frustration of late or non-payment of
water bills. This is why housing estates are swiftly moving to
prepaid water, as they did with prepaid electricity.
Gone are the days of splitting the entire estate’s water bill
by the number of units. Prepaid metering means that users pay
for their consumption only.
If you’re a developer or estate body corporate, visit the
Utility Systems website where you’ll find a list of approved
distributors.
4
What’s in it for municipalities?
Prepaid systems are cost-effective solutions to
sustainable water management in that they have a
low cost of acquisition and, by curbing water usage, capital
recovery is possible within months.
The systems are also able to distribute water equally, based
on free water quotas, water balancing and fluctuating demand.
Aside from their ability to alert municipalities to leaks,
prepaid water meters also drastically reduce government’s
admin costs. This is because municipalities don’t need to chase
bad debts or budget for legal fees on unpaid accounts. Public
sector cash flow is immediately improved.
Collecting data from prepaid meters is also more efficient
than the manual collection required for post-paid meters. A
radio link receiver can be fixed, vehicle-mounted, or carried by
municipality personnel.
5
Is prepaid water cheaper?
No – this is a myth. Prepaid and post-paid water
cost exactly the same. (It is illegal to sell municipal
water above the municipal tariff rate declared.) That being said,
prepaid water gives consumers the opportunity to monitor
their consumption and react immediately to possible leaks.
BIO
Marcus Thulsidas
Director: Business
Development, Utility
Systems
RESOURCES
Business Development, Utility Systems
SA Real Estate Investor Magazine MAY/JUNE 2019
19