Administrative Fees

Pricing Element	Pricing Portion Estimate	Channels	Description
Point of Purchase How is electricity purchased?	2.0% to 7.0%	Retailer Online Mobile Phone ATM Landlord Outle Municipal Outlet	This is controlled by the Tenant. The tenant decides what is most convenient for them. Like most things in life the greater the convenience the greater the expense! The cheapest for a tenant is to get electricity directly from a municipality or a landlord. Not all municipalities have vending outlets and rely on other channels. Most landlords also don’t want to get involved in accepting cash payments and hence direct their tenants to alternative channels.
Method of Payment How is it being paid for?	1.0% to 6.0%	Cash EFT Universal Pin Credit Card Cheque Debit Order (ACH)	This is also largely controlled by the Tenant and is a function of what is acceptable as a method of payment by the recipient. All methods of payment attract some expenses for the recipients (e.g. Cash deposit fees, Credit card fees, Bank Fees etc..) Generally EFT is the most cost effective method.
Delivery Provision How is the recharge Token delivered?	0.5% to 2.5%	Paper Receipt eMail SMS USSD GPRS	This is a combination of the method of purchase and the type of device.
Sub-Metering Factors What charges are required to be recovered in Sub-Metering?	3.0% to 6.0%	Tenant Meter Readings Tenant Billing (capture, printing, delivery) Tenant Delayed Payments Tenant Arrears Payments Common Area Costs Fixed Fees (Meter Installation, Annual Fees, Environmental Levies, Max Demand charges etc..)	This is controlled by the Municipality or Landlord. Without the use of meters, landlords typically recover these charges as part of their rent or as additional items on their rental statement to their tenants. Most tenants prefer to be pay for electricity directly (either via a direct contract with Eskom or Municipality or using a prepaid meter) and hence exercise some control regarding their own usage of power.

Depending on the region, for ease of use fees are often bundled and averaged to be 10% of the recharge amount. An additional 4% is normally added if a retail vendor or other credit card gateway is used. At the discretion of Owners (i.e. Landlords, Municipalities, Property Managers etc..) fees are payable by the Owner or its End-User (e.g. Tenant) or a combination of both.

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