A Meter Reading Agent employed by the landlord was incorrectly charging for five meter readings (one per floor), despite there being only one meter for the entire building.
The Meter Reading Agent was not applying the most cost-effective tariff and was over-recovering kWh consumption through incorrect tenant allocations.
The landlord’s rates-recovery percentage applied was inconsistent with the terms of the lease, resulting in an over-recovery.
Venn discovered that the municipal monthly water consumption of 200 kl was understated and should be 2 000 kl per month. The landlord and tenant thus had a potentially liability of approximately R1 million in unforeseen water and sewer back-charges.