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News

City Power Cracks Down on Defaulting Customers with Grid Disconnections in Joburg South

By
Nomthandazo Ntisa
Published: 18 October 2024,
5 Min Read
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City power
Source: Student Room
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City Power has intensified its mission to recover millions owed by property owners in the southern parts of Johannesburg. The utility has launched an aggressive revenue collection campaign, targeting areas with high non-payment rates. With the assistance of law enforcement agencies, the disconnection drive aims to bring defaulting customers to book, sending a stern warning to those attempting to avoid their financial obligations.

Contents
  • Targeting High-Debt Areas in Johannesburg South
  • Escalating the Drive: Focus on Lenasia and Beyond
  • Addressing Loopholes to Improve Collections
  • Ongoing Challenges in Revenue Collection

Targeting High-Debt Areas in Johannesburg South

City Power’s crackdown comes as the utility continues to experience financial strain due to customers neglecting to settle their bills. According to Lloyd Ntlemo, City Power’s revenue management specialist, many customers have exploited loopholes to avoid paying. “These customers have been defaulting for a long time. We are just cutting all the loopholes that they are trying to use to escape from paying,” Ntlemo stated.

The utility has identified several properties with substantial outstanding debts. One of the first stops on Thursday was Nasrec Corner Shopping Centre, which reportedly owes R3.7 million to City Power. After disconnecting power at the shopping complex, officials proceeded to a nearby residential complex, which owes a staggering R3.1 million in unpaid bills.

Escalating the Drive: Focus on Lenasia and Beyond

City Power’s crackdown in Johannesburg South is part of a larger revenue collection initiative that has already made waves in other parts of the city. In September, the utility extended its disconnection efforts to Lenasia, where customers owe an estimated R800 million. Armed with the support of the Johannesburg Metro Police Department (JMPD), the South African Police Service (SAPS), and private security firms, City Power disconnected several defaulters from the electricity grid.

The involvement of law enforcement underscores the seriousness of the campaign. It also ensures that officials conducting disconnections remain safe and that property owners do not interfere with the process. “The reason some of these customers have not been paying is because they’ve figured out how to go around the loopholes within the system,” Ntlemo added.

Addressing Loopholes to Improve Collections

City Power has vowed to eliminate systemic loopholes that allow certain customers to dodge payment. The utility’s efforts aim not only to recover outstanding debt but also to prevent future non-compliance. The disconnection of high-profile defaulters serves as a warning to others with outstanding bills. Property owners and residents in the affected areas are being urged to regularize their accounts to avoid disruptions.

The growing backlog of unpaid electricity bills has placed a strain on Johannesburg’s already fragile power infrastructure. Non-payment directly affects the city’s ability to maintain and improve the grid, resulting in further disruptions and inefficiencies. By holding defaulters accountable, City Power hopes to restore financial stability and ensure better service delivery to compliant customers.

Ongoing Challenges in Revenue Collection

While the revenue collection drive has yielded some success, challenges remain. Many customers still find ways to exploit loopholes, making it difficult for the utility to recover what it is owed. In addition to financial losses, these tactics create a sense of unfairness among paying customers, who shoulder the burden of non-compliance by others.

The partnership between City Power and law enforcement agencies is crucial to the campaign’s success. Coordinated efforts help ensure that disconnections proceed smoothly, while also deterring customers from reconnecting illegally. However, for long-term success, the utility may need to implement more robust systems to monitor payment compliance and discourage future defaults.

City Power’s disconnection campaign in Johannesburg South sends a clear message: non-payment will no longer be tolerated. The crackdown on defaulters, starting with the Nasrec Corner Shopping Centre and other large debtors, is a necessary step toward restoring financial health to the city’s power infrastructure. As the utility continues its revenue collection drive in other areas, customers are urged to pay their outstanding bills to avoid disconnections and legal consequences.

With ongoing efforts to plug loopholes and improve collections, City Power aims to secure the funds needed to maintain a reliable power supply for all residents. The time to act is now—defaulting customers must settle their accounts or face the consequences of disconnection from the grid.

TAGGED:City PowerJoburg South
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