The Government is committed to combating the unscrupulous landlords for overcharging their tenants for water through an inter-departmental and multi-pronged approach, including following up on reports and initiating prosecution, introducing relevant legislative amendments, strengthening joint inspections with other departments, streamlining the procedures for installation of separate water meters of the Water Supplies Department (WSD) for subdivided units (SDUs), etc. The Development Bureau (DEVB) has previously submitted the Waterworks (Amendment) Bill 2023 (the Bill) to the Legislative Council (LegCo), with a view to enhancing the enforcement efficiency and deterrent effect against overcharging for water. This time, I have invited colleagues of the WSD to talk about the amendments covered by the Bill, and how to further improve the Scheme for Installation of Separate Water Meters for Subdivided Units (the Scheme) to encourage the participation of more SDU landlords.

Six key features of the legislative amendment

Engineer (Legislative Review) of the WSD, Ms YEUNG Shing-ting, Fiona, says that after the amendment of the Waterworks Regulations in 2021, landlords can only recover from their tenants the water charges paid to the WSD. As at the end of October this year, the WSD has received a total of 117 reports of suspected overcharging for water. Amongst these cases, more than 10 cases are still under investigation. Another 13 cases were successfully brought for conviction with fines ranging from $1,000 to $5,000. For the remaining cases, no prosecution actions could be pursued due to insufficient evidence and we therefore propose amending the Waterworks Ordinance (WWO) and the Waterworks Regulations (WWR). The proposed amendments have six key features, including introducing a new offence for providing any false or misleading information with a maximum penalty of a fine of $10,000 and imprisonment for 3 months.

1. Empowering the Water Authority (WA) to obtain related information

Since there is currently no provision in the WWO and WWR to empower the WA to compel the parties involved in suspected water overcharging cases to provide information, it is difficult for the WA to obtain evidence and carry out investigation.

It is proposed under this amendment to empower the WA to request relevant persons (e.g. landlords and their agents, etc.) to provide relevant information (e.g. tenancy agreements, receipts or records of payment of water charges). Any person who, without reasonable excuse, fails to comply with such request commits an offence. A maximum fine of $10,000, with a further maximum fine of $1,000 per day after the deadline if the requested information is still not provided, is proposed.

2. Mandatory requirement to issue receipts and keep copies of them

The receipts for charges of water are key documents for investigation of overcharging for water. We propose requiring a person who receives charges for water to give a receipt to the payer within 7 days after the date of payment and keep a copy of the receipt for 2 years from the date of payment. The receipt must show the names of the payer and payee, the payer’s address, the amount, the period to which the charges relate and the date of payment.

3. Introducing a new offence for providing false or misleading information

In order to enhance the deterrent effect against providing any false or misleading information or documents, we propose introducing a new offence for any person who knowingly or recklessly providing any false or misleading information or documents to the WA. A person who commits such an offence is liable on conviction to a maximum fine of $10,000 and imprisonment for 3 months.

4. Increasing the penalty for repeated overcharging for water

In order to enhance the deterrent effect against overcharging for water, we propose increasing the penalty for overcharging for water to a two-tier penalty of a maximum fine of $10,000 on first conviction and of $25,000 on subsequent convictions. We also propose to add a new provision so that the person convicted of overcharging can be ordered to repay the overcharged money to the payer.

5. Empowering the WSD to exchange information with the Rating and Valuation Department (RVD)

Information exchange helps enhance the enforcement effectiveness of the Government. The Bill will enable the WSD and the RVD to exchange information about overcharging cases obtained from respective inspection and investigation so as to enhance enforcement efficiency and deterrent effect.

6. Making clear that reimbursement of water charges may only take place after the issue of a water bill

The amendment provides that landlords can only receive reimbursement for water charges from their tenants after the issue of a water bill by the WA. Such requirement can further reduce the chance of overcharging for water by registered consumers or landlords.

The Bill with the proposed amendments was gazetted in mid-October and we hope to complete the legislative procedures by the end of this year.

Encouraging more landlords to install separate water meters

To reduce the risk of overcharging for water, the WSD launched the Scheme in 2021 to install separate water meters for SDUs and streamline the application procedures. Senior Engineer (Technical Support) of the WSD, Mr LEE Hong-nin, Kevin, says that since 1 April of this year, the Government has encouraged more landlords of SDUs to take part in the Scheme by providing economic incentives, including waiving the water deposit for each separate water meter ($400) and the charge for providing each separate water meter ($120). The WSD has also co-ordinated with non-government organisation (NGO) and the plumbing industry to provide free technical advice and waive the charge for installation of water meters for the applicants approved for participation under the Scheme.

Landlords to avoid breaking the law inadvertently

Ms LEE, a landlord joining the above scheme, gives thanks to the WSD for assisting in installation of water meters, saying that the installation prevents not only tenants from being overcharged for water, which is fairer to them, but also landlords from breaking the law inadvertently due to careless overcharging for water. Mr KAO, an SDU tenant, says that his water expenses have been reduced after the installation of a separate WSD water meter. The Scheme has enabled the grassroots to use water without worrying about high charges.

Introducing walk-by meters

As of the end of October this year, the WSD has received a total of 194 applications with 123 cases approved, and installed a total of 315 separate water meters. The WSD has further streamlined the application procedures and at the same time introduced walk-by meters. Such devices enable meter readers to take meter readings directly outside the residential units and the data will be automatically entered into the system so as to solve the difficulty in taking readings manually at individual SDUs.

Moreover, the WSD has been collaborating with the RVD, the Housing Bureau and other departments to conduct interdepartmental operations to visit SDU tenants to see if they have been overcharged for water and to promote the legislative requirements under the related laws. As at the end of October this year, visits or inspections have been made to about 6 250 SDUs during the joint operations.

We believe through the above strengthened measures and collaboration amongst the relevant departments and NGOs, law enforcement will be enhanced effectively to protect tenants from being overcharged for water.