3 hours ago
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City Power says it has recouped only R12m instead of an anticipated R50m it was hoping to recover from debtors during a recent revenue collection drive where it disconnected businesses and residential properties that don’t pay for electricity.
City Power spokesperson Isaac Mangena said it was owed a “staggering” R9.86bn and had hoped to collect at least R50m in the past two weeks when it started disconnecting debtors. However, the debtors failed to pay. It then cut off their power supply.
The power utility disconnected electricity in more than eight establishments, including hotels, state-owned properties and private residences in the Joburg CBD and Lenasia.
“Of the R50m we pursued in the past two drives, we have managed to collect R12m with other properties remaining cut off. We are closely monitoring they don’t reconnect illegally,” said Mangena.
He said the revenue collection drive campaign remains a good initiative but was, however, sabotaged by contractors who in some cases had reconnected customers who were cut off for nonpayment.
“So far, eight city employees, five electricians and two contractors have been arrested for cable theft and some for illegally reconnecting clients. Investigations are ongoing. [We] are also focusing on enhancing security and preventing future incidents,” he said.
Mangena said the reason most properties owe millions of rands was because they had either defaulted on their payment agreements or skipped months without paying for the service.
“Most of the customers know how to play the system.
“The system allows you to enter into agreements with the city, and most of them do so, promising to pay, say for example R10,000, and they don’t pay or they pay it and do not pay their current account.
“So, they will pay the outstanding but not the current account. This is concerning because these businesses continue making money while we as the city are bleeding money. We will continue to intensify revenue collection,” he said.
He said other reasons customers ended up owing millions was because the utility took several steps before it disconnected customers such as writing to them and calling them to reach an agreement.
