Johannesburg’s power utility, City Power, recovered a staggering R1.5 million from one client during a cut-off operation in the Inner-City Service Delivery Centre (SDC).
The operation, targeting high-debt defaulting customers, was carried out across several locations including Bellevue, Berea, Jeppestown, Houghton Estate, Yeoville, Parktown, and the Johannesburg Central Business District (CBD) on Thursday.
City Power spokesperson, Isaac Mangena, said the collection marked the second phase of a larger effort to recover over R105 million in unpaid bills from customers, including Large Power Users (LPUs) and three residential properties.
“During the operation, tensions escalated in Parktown when two property managers attempted to prevent City Power's officials and law enforcement officers from accessing a property to carry out a disconnection,” said Mangena.
“The men, identifying themselves as the property management team, attempted to present a 2021 court order that had expired. Despite the fact that the property owed over R5.2 million and had not made a payment since December 2018.”
Mangena said the property managers were engaged in long negotiations, including multiple calls with their lawyers and eventually agreed to make a down payment of R2 million, however, they only managed to pay R1.5 million.
Mangena said the cut-off operation resulted in six properties being disconnected, with plans to continue with disconnections in the coming days.
Mangena said the utility’s approach was firm and flexible, striking a balance between enforcing payment and negotiating reasonable repayment agreements.
Meanwhile, Arsenio Cossa, General Manager of the Inner City, Arsenio Cossa, expressed satisfaction with the operation's outcome.
“[Thursday’s] operation is a testament to our commitment to improving revenue collection. We successfully disconnected six properties, and we are seeing payment arrangements being made by those who want to avoid further disruption,” Cossa said.
“While we face challenges, progress is being made in ensuring that customers fulfil their obligations.”
Cossa said the inner City SDC was a critical component of City Power’s overall revenue collection strategy, responsible for a substantial portion of the utility’s debt book, which currently stands at R9.86 billion.
He added that the Inner City alone accounts for R2.5 billion of this total debt, underscoring the importance of this ongoing effort.
“In the first quarter of the 2024-2025 financial year, the Inner City SDC collected R12.4 million of a targeted R43.7 million from ten key customers, with expectations for additional collections in the coming months,” said Cossa.
Nqobani Mzizi, Senior Manager of Revenue Enhancement at City Power, highlighted the broader issue of non-payment, particularly among customers who are financially capable of settling their debts.
“Unfortunately, there is a growing culture of non-payment, where some customers, even those with the means to pay, are relying on the courts to delay payment,” said Mzizi.
“This undermines not only City Power’s financial health but also places a strain on the utility's ability to provide services. It is vital that we address this issue head-on and continue to take decisive action against those who misuse the legal system to evade their responsibilities.”
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