LEGAL TALK with Hahn & Hahn Attorneys: Municipal Billing Under the Microscope - The Johannesburg Water Case

Joining me here on Legal Talk as always is from Hananana journeys, Yaku Harman, who recently secured a significant high-called judgement against Joburk Water, Johannesburg Water. Yaku, congratulations and well done. Thanks, you're on a good day, thanks for having me as always. Now let's start simply, Yaku, what was this case actually about? So, on our client, there's still manufacture, like any industrial operator, no, they use water in the manufacturing plant, and then that water that then gets discharged, we call that effluent. Now, that effluent, of course, flows into the municipal sewer system, and because that effluent, it's not, of course, clean water, they pay a fee for that, and that fee, they pay based on how much they discharge these other things in there as well, so in other words, depending on the quality of the effluent, but let's leave that for now. So, the easiest way to explain this is, well, you pay based on the volume that you discharge. Now, our client had a proper calibrated meter installed that measured exactly how much effluent was going into the sewer. Now, your listeners can think that at their own home, you've got a meter measuring the water coming into your property. Now, for effluent, you've got another meter measuring how much water goes into the system, because you are charged for that. Now, that meter of these is calibrated, they swap at every six months, they take meter readings. Now, the dispute was that jovab water sent our clients' bowls and then didn't use those meter readings. Instead, they used the calculation, and that calculation is based on a rough estimate. Now, of course, that estimate was a lot higher than the actual water consumption. Okay, and that's not just a technicality. I mean, what was the actual impact on your client, Yaku? So, it was substantial. So, over a four-year period, the estimate method produced bowls that was roughly three times higher. That's three times higher than what the meter is actually recorded. Now, what makes us even sadder is that Janisberg's water's officials visited the site eight times during that period. They saw the meters, they were there, they saw that it worked. They even themselves took some of those readings. And they'd never complained to say it's not that it, yet they kept on building the client on the estimates anyway. Sure. And what did the court decide? So, the court was very clear. They said that the bio-low, if you read the bio-low, it's very clear. It says that estimate method only applies in the absence of any direct measurement. So, where you've got a worth working meter, the municipality doesn't have a discretion just to disregard it because the estimates is higher. So, they can't use that estimate instead of using that actual meter readings. And the reason for that is the municipality can't exercise a power that the law doesn't give them. So, what is the law that the municipality has to comply with in this instance and then joke of water? It's the bio-low, and what is the bio-low, see? And that's why the court declared that joke of water was legally required to build based on that actual meter. And we got judgment in our favor for over 6.3 million rent plus interest and costs, right? And the interest on that, because this thing has been dragging on for some time, that interest is going to be over the period of, what is it now, 6 years. So, it's massive, you can just use the calculations for yourself. And then of course, the legal cost because there was a lot of interlocatory applications and job reporters said X, Y and Z, and then we had to take them to court to compel them to give us documents and information, yes, I know it's substantial. At 6.3 million rent plus interest and costs, wow, that's a lot, hey. Yaku, why should this matter to other businesses listening right now who aren't in a legal dispute with their municipality? The sad thing, Yon, is that it's a lot more common than people realize. Any businesses that discharges this industrial effluent, and if you think about it, right by being bold of estimates rather than actual meters for the electricity or water, must ask themselves whether they aren't real readings. Now, I can tell you now, you'll listen as no matter where in the country they are. If they see a spike in their bull for one month, then let's just check and then let's read the actual bull. So if I think now of my electricity bill at my home, the first page is the one where it tells you what the amounts are. And then the second page tells you what the readings are. And there they will be able to see whether it's actual or estimate. Now, the municipality is generally speaking because by the law of the fact, has got a window period in which they can take estimates. But that's normally at most for three months, and then they have to go back to actual. And the safest thing for them then, for your listeners is to go and take your own readings, whether it's now for effluent water or electricity and make sure that those readings then tie up to what the municipality gives you. So record keeping in these things are very, very important. And then if you've got your own meter installed, it's not a municipality meter, you must ensure that that meter is calibrated as well, so that one can use it. Absolutely. And Yaku, for someone who thinks this might apply to them, what should they actually do? So I want to say, phone the ghost blasters. So get hold of first, have a look at your account, like I said, and have a look there what it says, instruments. What also happens, a lot of times that we've seen electricity, is that one day the client just gets a massive bill. And then if you look at the calculations, the municipality is trying to back-build it based on calculations and estimates and that sort of thing. So have a look at that, read your electricity account, your effluent account, your water account, see what it says, read it first of all. And then if you see there, it talks about estimates or these calculations, then you need to start worrying, then they should contact us. That's where we come into. So that's where we're on and on comes in. Yeah, exactly. So for businesses, we represent a lot of businesses all over the country in these sorts of disputes. Not just with municipalities, with landlords and with Ishkum as well. Yeah, so if you're customer, your listeners has something like that, have a look. But yeah, it's very important for them to read. Definitely. Yaku, thank you so much and well done once again. Thank you very much. Yeah, it's a bittersweet win in the sense that, yeah, because it just as was done, wasn't just seen to be done, but the reality is it should have never happened. Exactly. That's where we are. And we need to stand up for ourselves more and more and all the officials and the departments accountable. So yeah, thank you. Just like that, yeah. And that was Yaku Aman from on and on attorneys joining us today here on the legal talk. Are you or your business in trouble and struggling to find a solution? Call Han and Han attorneys as we assist clients in finding solutions. We specialize in consumer and food law, commercial and construction law, forensic investigations and administrative law. Visit HanLaw.co.z, that's H-A-H-N, we assist clients nationwide, Han and Han attorneys because we care. Don't miss legal talk with Han and Han attorneys, Wednesday mornings at 10 on eRadio.