Complex residents and community activists raise concern over electricity scam
Benson Motsumi, a resident at Carswald View Estate, said he had a R100 shortfall for his water bill, but the company disconnected his electricity, in order to charge a R800 re-connection fee.
Carswald View Estate tenant and community activist Benson Motsumi said there is a potential scam run by metering companies in complexes and estates. Motsumi said he was told that several people have fallen victim to this scam, which has been going on for years.
He said the alleged scam cuts off your electricity for owing them R100, and then demands a R800 re-connection fee.
Motsumi said this happened to him on May 12. “I had an outstanding balance of R106. What’s worse, the R106 was not for electricity. They charged me for reminding me that I had an outstanding balance. So, they cut my electricity and then demanded that I pay a R800 reconnection fee. To prove that this has nothing to do with enforcing payments, the gentleman informing you that he was sent to cut off your electricity, unless you pay the due amount, simply cuts off the electricity, and then gives you a letter stating that you have to pay a re-connection fee”.
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He said while they are appointed by the estate to manage water and electricity, these reconnection fees do not go to the estate, it goes to them.
“They are collecting hundreds and thousands of rands using this tactic every month,” he said. “In other words, they have found a way to rob people using these mafia tactics in order to make more money for themselves. In my case, I had to stand up and fight. I was determined to do anything to resist this robbery by these mafias who are terrorising people.”
Motsumi said the overdue amount was for water, but instead of cutting off his water, they cut his electricity, in order to solicit this ‘ re-connection fee’.
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The company in question is called Prestige Metering Services, and Motsumi said he was told that most of these so-called ‘metering companies’ are doing the same thing. He said that he was not, in any way, suggesting that municipal bills should not be paid, but these kinds of practices should not be allowed.
“Both the City of Tshwane and the City of Johannesburg simply deduct what you owe when you purchase your next electricity voucher. These metering companies could easily do the same, but they will not, because they want to rob people.” He urged the trustees at Carlswald View Estate to stop these people from robbing residents in this manner.
Motsumi said he will lodge a formal complaint to the National Electricity Regulator of South Africa (Nersa), so that a full investigation takes place. If needs be, whatever empowers these syndicates should be revoked, because clearly they are using it to scam and abuse people.
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Portfolio manager at Carlswald View Estate, Sholeen Kasipersadh, said trustees of the body corporate said they were committed to fairness, transparency, and the well-being of all residents. “We understand that the situation you described has caused significant frustration, and we do not take these concerns lightly. We would like to clarify that the provision of electricity and water services, including billing and any associated fees, is managed by Prestige Metering Services, an external service provider appointed to handle utility metering within the estate. These arrangements are contractual in nature and exist between individual property owners and the service provider.”
Kasipersadh said the body corporate does not directly manage or enforce these agreements. She added that they wish to emphasise that there has been no resolution passed by the trustees to promote or endorse any form of unfair or exploitative practice. “We are more than willing to assist in facilitating a constructive dialogue between yourself, the service provider, and any other relevant parties. Our goal is to ensure that all perspectives are heard and that any misunderstandings are addressed in a respectful and solution-oriented manner.”
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Prestige Metering Services director Thalis Visser said they categorically deny all allegations of any unfair or improper practices. “We unequivocally affirm that our operations are fully compliant with Nersa’s regulations, including adherence to the relevant municipal by-laws. As part of our mandate, we enforce credit control procedures in cases of non-payment for utility services. This includes the imposition of penalty charges where applicable, which are well within our legal rights.”
She, however, did not answer why they wanted to cut the electricity when the tenant owed R100 for water. “While an individual outstanding amount slightly over R100 may appear negligible in isolation, the cumulative impact across thousands of units represents a significant financial exposure. We are obligated to settle the full municipal account for the complex to prevent service disruptions, thereby safeguarding the interests of the broader community.”
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