City must claw back arrears somehow

It was in November 2016 that the then DA-led coalition government took the decision to block the prepaid electricity meters of residents or businesses whose accounts were in arrears. At the time, if you owed the city more than R200, you would not be able to buy electricity until the account was settled or an arrangement made to pay it off. And to unblock your account, you would have to pay a R350 reconnection fee.

There was an outcry among residents and opposition parties at the time.

The move was labelled anti-black and uncaring, it sparked protests and some argued that it would encourage more electricity theft.

Eventually it was scrapped by the next political guard because of its social (read political) implications.

Fast forward a couple of years and the city is saddled with massive debt — R4.84bn to be exact.

It is now looking for ways to claw back the arrears through electricity purchases — a move which is likely to cause another uproar.

Acting mayor Thsonono Buyeye says in his report, which will have to be approved by the council, that the setoff policy would allow the metro to take a percentage each time a ratepayer whose account is in arrears buys electricity.

The city’s collection rate has dropped to 83% against a target of 94%, he says, and it is saddled with R4.48bn in unpaid bills.

While the timing may be off — particularly as many residents have been left either jobless or with reduced salaries — the reality is that it is unsustainable for the city to provide a quality service to a dwindling rates base.

Those who can afford to pay must do so as skipping payments will inevitably affect the level of service the municipality provides.

The off-set policy will allow ratepayers to still be able to buy electricity instead of being left completely in the dark.

We agree that in this way residents will not suffer by having their power cut and the metro will be able to recoup at least some of the money owed.