City Power clarifies Planet Fitness multimillion rand of unpaid electricity bill

City Power has clarified the dispute by Planet Fitness surrounding the disconnection of power supply along with the multimillion rand of unpaid electricity bill.

Last week, City Power spokesperson Isaac Mangena said the utility was on a revenue collection drive targeting customers owing the utility R18 million in areas supplied by the Alexandra Service Delivery Centre (SDC).

“We have disconnected Wanderers Stadium which is owing about R3 million and Planet Fitness gym facility that is owing about R12 million, it’s based in Wanderers as well, and a business property with R2.6 million in arrears were among those disconnected.”

However, Planet Fitness said it was “untrue” it had an unpaid electricity bill adding that the billing dispute was between the landlord of Wanderers Planet Fitness and City Power.

Dispute

In a statement to The Citizen on Wednesday, Mangena said the utility had taken note of the response from Planet Fitness claiming that City Power made false statements regarding the disconnection of power supply along with the multimillion rand of unpaid electricity bill.

“On 27 March 2024, City Power embarked on a revenue collection drive, which is part of the entity’s weekly operation, targeting non-paying and defaulting customers. During that operation, several businesses were disconnected for owing City Power, and among them was Planet Fitness.

“From the entity’s records, the account which was in Planet Fitness name owed over R12 million. The customer’s power supply was cut off during the drive, however, shortly after that, City Power received a notification of two payments, one worth R2.6 million and the other, over R300 000. That payment met the required 30% threshold for the acknowledgement of debt arrangement,” Mangena said.

ALSO READ: Wanderers stadium among City Power customers owing millions in unpaid electricity

No false accusations

Mangena added that a team was then assigned to reconnect power supply.

“If Planet Fitness has a contract with the landlord, then we urge the two parties to have a discussion because while the business claims to owe nothing, our records still reflect an outstanding bill worth millions.

“If the standing payment arrangement is not honoured, we will be forced to go back and switch off supply yet again. City Power would like to put it on record that it did not falsely accuse any customer and the suggestion that it did, is misleading and dishonest,” Mangena said.

Planet Fitness response

In response to questions from The Citizen, the Planet Fitness executive team said the gym is aware that a payment was made by “our landlord to City Power but refute that this was made by Planet Fitness as the operating tenant”.

“It is possible the account has the name Planet Fitness on it as a reference to the property, however, the account is not served upon us, nor are we responsible for the payment of the account, as the operating tenant. It is a reference to the property and not the operating tenant.”

Planet Fitness said the landlord, New Property Ventures authorised the following statement from STBB, their legal team:

Dispute

“The contract to supply electricity to the Planet Fitness Wanderers premises is between City of Johannesburg and the landlord. Planet Fitness Wanderers as the operating tenant is not involved in any way in the current electricity impasse with City Power.

“The landlord has disputed the amount claimed by City Power being in a bill dated 28^th February wherein charges are back dated for three years. The bill has been queried by the landlord and adjustments requested. Power was restored to the premises within 90 mins of disconnection, which landlord believes was both premature and heavy handed on behalf of City of Johannesburg,” the statement read.

ALSO READ: City Power distances itself from DA councillor’s water outage claims