Muni drafts incentive scheme for late payers
Having been approved by council, the following incentives will be implemented on 30 June next year
POLOKWANE – The Consumer Payment Incentive Scheme, which was recently drawn up by the Polokwane Municipality is set to leave a bad taste in some consumers’ mouths who religiously pay their bills on time every month.
The scheme, which was discussed in the council meeting last Thursday aims to instil a culture of payment, reduce the municipality’s debt book and collect as much revenue as possible by offering interest write-offs and other incentive for prompt payment.
The incentives are mostly aimed at consumers who have accounts that are in arrears.
The aim of the scheme will be reached once the consumer has paid the account balance after a deduction has been made of the interest write-off and discount. If this goes smoothly, it will mean that consumers who are in arrears with their accounts will have the opportunity to pay their accounts with considerable amounts deducted and their accounts will then be up to date whereas consumers who religiously pay there bills won’t benefit from the incentive scheme. Those who opt to make use of the scheme will not be able to benefit a second time regarding debt that is outstanding as this is not in the terms and conditions.
Having been approved by council, the following incentives will be implemented on 30 June next year:
• Upon participation, a write off of 50% be made on back-charge and interest in respect of accounts that are back-charged for services, if paid in full.
• Regarding businesses, a write off of interest and 40% upon settlement.
• Regarding the University of Limpopo, a 30% write off be granted on back-charged assessment rates.
• Property owners whose tenants left an outstanding balance on the account after moving out – debt of 50% be written off as well as interest upon participation.
• All interest charged to government departments be negotiated before writing off.
• The settlement period will be extended to a maximum of six months.
Council also discussed the issue of back charges regarding the scheme and it was said that because back charges on services occur often, the consumer can not be penalised not to receive an incentive on back charges if the consumer has received an incentive on an arrears account. With regards to the scheme, the municipality states that the incentive benefit requires prompt payment, however, if consumers wish to make an arrangement, they will have up to six months to make the payment.
