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City Power Cracks Down on Defaulters Owing R37 Million in Joburg

Published February 25, 2024
1 years ago

In a decisive clampdown on outstanding electricity debts, City Power, with the support of the Johannesburg Metro Police Department (JMPD), has targeted five major properties in Johannesburg to shut off power due to a substantial R37 million collectively owed to the city. The proactive enforcement is part of a broader revenue collection initiative aimed at ensuring financial sustainability and the capability to deliver necessary public services.


The targeted disconnections began when North Hill flats in Yeoville were disconnected for accumulating arrears exceeding R2.2 million. The enforcement blitz continued onto Yettah Street in Hillbrow, where Safari Court was cut off from electricity after piling up more than R16 million in unpaid bills. Further investigations revealed that the property had illegally reconnected itself to the city's electrical network after a previous disconnection.


Adding to the crackdown, educational institution Damelin College, located in Braamfontein, faced a service suspension for underpaying their electricity bills, which resulted in over R2.9 million in arrears. These targeted actions have underscored the City's commitment to address non-compliance, which directly impedes its mission to provide consistent and quality services to residents.


Mmaphuti Makgabo, City Power's customer care manager, emphasized the urgency of the situation, stating, "Our main objective is for us to collect the revenue. The total amount we are expecting to collect today is about R37m." The pursuit of these owed funds is a witness to the City's persistent efforts to maintain operations while dealing responsibly with defaulting customers.


Earlier this month, the power utility also targeted residential complexes in Midrand, disconnecting services for non-payment. Isaac Mangena, City Power spokesperson, shared their objective of recuperating R50 million, while revealing that Midrand's debts amounted to over R350 million. Mangena highlighted a pressing issue wherein tenants pay their electricity dues to property management companies, which fail to transfer these payments to City Power.


This issue not only poses a challenge to the utility company but also disadvantages paying tenants who are faced with service interruptions through no fault of their own. Mangena derided this neglectful behavior by property managers and insisted that tenants demand accountability from their respective body corporates to avoid such predicaments.


The wave of disconnections has served as a stern warning to defaulters that the City will no longer tolerate financial delinquency. This approach, while tough, is necessary to ensure the financial health and operational effectiveness of utilities that the greater Johannesburg community relies upon. Additionally, it is hoped that this will prompt a change in behavior and foster increased responsibility regarding the timely payment of utility bills by property managers and private customers alike.


City Power's stringent approach, though met with immediate discomfort by the affected parties, is projected to lead to a more reliable and stable electricity supply for the compliant consumers. The actions taken are set to resonate throughout Johannesburg as a testament to the City's commitment to fairness and the sustenance of crucial public amenities.



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