Administrative and billing issues cost CoE millions
Dlabathi has been pivotal in the success of the Siyakhokha Siyathuthuka campaign.
Ekurhuleni Mayor Nkosindiphile Xhakaza revealed that the municipality is losing millions in revenue because large commercial electricity users pay minimal amounts for power due to administrative inefficiencies.
Speaking at the last council sitting on November 28, Xhakaza said corrective measures are underway, spearheaded by the newly appointed MMC for Finance, Jongizizwe Dlabathi.
“The MMC is investigating billing processes for large power users to identify revenue leakages in this critical area.
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“We commend the Department of Energy for presenting a robust plan to strengthen our revenue collection systems,” said Xhakaza.
Dlabathi’s Siyakhokha Siyathuthuka campaign to promote service payment has made strides in addressing the financial challenges.
Xhakaza praised the initiative, highlighting its balance between enforcing credit control and offering targeted relief to vulnerable residents through debt incentives and rehabilitation programmes.
In an interview with the Germiston City News, Dlabathi said billing errors for 1 904 major electricity users had cost the city R430m.
“In Benoni, a factory consuming significant electricity was billed for only 24kW of power and 1Kl of water – far less than the actual usage,” he said.
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Another company, owing R3.7, was caught stealing electricity and water.
Further losses included R530m due to incorrect water bills for 22 000 accounts and R350m uncollected because some accounts were missing from the system.
Dlabathi warned that unpaid bills jeopardise service delivery.
“If residents don’t pay, we cannot sustain water, electricity and waste collection services,” he cautioned.
Since July, Dlabathi has prioritised financial recovery, supply chain and budget management and improving audit performance.
These measures aim to rebuild Ekurhuleni’s financial stability and restore efficient service delivery.
