Meter "migration" plan hits snag

Meter "migration" plan hits snag
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By K.W. MAK

Many condominium owners were outraged when water rates were increased for high-rise properties last year. Following the outcry, Syabas came up with several guidelines to take over water meters to allow owners to enjoy cheaper domestic rates, but the implementation has hit a snag.

CONDOMINIUM owners are still a long way from enjoying residential water rates despite an announcement by the Selangor state government in April that owners would be given the option to "migrate" or transfer their meters.

Problems: The water meter is often used as a bargaining tool in high-rise property disputes.
The rise in water rates last year affected condominium owners due to the way stratified properties were charged for the water supply.

While landed property owners could continue to enjoy cheap water, condominium owners found their bills increased from a flat rate of RM1.20 per cubic metre to RM1.38 per cubic metre.

Following an outcry, Syarikat Bekalan Air Selangor Bhd (Syabas) initiated a proposal to allow condominium owners the choice of switching to individual meters.

The good news was short-lived, as condominium residents complained that there were several clauses within the guidelines that prevented the migration.

Difficult clauses

The Condominium, Apartment and High-rise Committee (CAHC) has received feedback on the difficulties faced by condominium owners and residents.

Topping the list was the requirement that the switch could only happen if the Management Corporation (MC) and 100% of the condominium owners gave consent.

CAHC pro-tem chairman Tengku Nazaruddin Zainuddin said many MCs were still using the water meter as a bargaining tool to force owners to pay maintenance fees.

Nazaruddin said that the problem was the high number of properties that were rented out through estate agents and unsold units that belonged to the developer.

“Developers would not want to migrate as it will be to their disadvantage and investors do not care because their tenants pay the water bills,” said Nazaruddin.

There was also the clause that the rates chargeable for common property areas would be increased to the commercial rate of RM2.07 cubic meter for the first 35 cubic meters.

Water usage in common areas is subsidised by all owners, and this can be for the use of the swimming pool, watering plants or car wash.

“Common areas are not commercial areas. They belong to the residents as stipulated in the Sales and Purchase Agreement. There is no reason why commercial tariffs should be applied,” said Nazaruddin.

Syabas explains

Still waiting: Owners of high-rise properties like the one pictured here left the meeting disappointed but still hopeful for the future.
In a meeting last Thursday with Syabas executive director (operations) V. Subramaniam, CAHC members representing 54 condominium developments from Kuala Lumpur, Petaling Jaya, Kajang and Klang trashed out the issues.

Despite the arguments, Syabas maintained that the consent and agreement from all parties must be adhered to, if only to avoid legal complications later.

”We cannot force anyone to change to the new system. We have to be fair to all,” said Subramaniam.

He said that the consent of the MCs was required because Syabas had to deal with their account-holders.

On the higher rates for common areas, the reason given was that Syabas could not monitor all the condos on the issue of how water was used in common areas and that some condos have businesses operating in those areas.

Syabas billing and recovery division head Thein Kwee Sim urged the owners to understand that the exercise Syabas was to undertake meant that 500,000 new water meters would be created and that would be a strain on Syabas’ meter readers.

Subramaniam also said Syabas would study the issue on a case-by-case basis if the 100% consent could not be achieved.

He said that several applications had already been accepted from condos that did not meet the requirements.

Subramaniam admitted that the Syabas revenue would drop drastically when the exercise is implemented but that was not an excuse for the company not to honour the meter transition exercise.

“Syabas initiated this. The clauses should not be a stumbling block for migration. Everyone just needs to play their part,” said Subramaniam.

Nazaruddin: We want this exercise to be mandatory.
He said Syabas already received several applications and expected the first meter transfer exercise to take place in two months.

CAHC pro-tem vice chairman Khong Chee Seng urged Syabas to organise a forum to educate the MCs on their role.

Still hopeful

Owners left the meeting disappointed but hopeful, as there was still a possibility of resolving all these matters after April 11 next year when the new Building and Common Property (Maintenance and Management) Act 2007 requires developers to form a Joint Management Body.

As the Joint Management Body would be majority-controlled by owners, consent for the water meter migration exercise could then be implemented and details of all property owners would finally be disclosed to allow the fulfilment of the 100% owner consent.

However, this means that cheaper water rates cannot be enjoyed till next year.

“We want the state government to make this water meter migration exercise mandatory and we are appealing to them, because the guidelines were approved without consultation with condo residents and there are several problems,” said Nazaruddin.