City Power implements new cost-saving model with contractors
A decision has been taken to discontinue the payment of ‘call-out fees’.
The MMC for Environment and Infrastructure Services Department, Michael Sun, would like to address the false rumour that has been doing the rounds regarding City Power contractors.
He said it has come to his attention that there is a rumour being spread among the residents of Johannesburg about the termination of ‘low-voltage’ contractors of City Power and that City Power will not be able to repair any household faults.
“This is simply not true as we are not terminating the work of contractors, but rather introducing a new cost-saving model, which is being implemented by City Power.
“We appreciate and recognise the good work and support that City Power has received from its contractors, many of whom work tirelessly to restore power outages. Regrettably, as with any service delivery, it is important to measure the success and the quality of the work and service provided, which the City has since established has been more costly and not sustainable,” explained Sun.
A ‘call-out fee’ is a charge paid to contractors to assess the problem and advise City Power regarding the repairs that are required.
“In line with our goal to run City Power efficiently and profitably, management has assessed the ‘call-out fee’ expenditure levied by the contractors and found it to be unsustainable and not supported in the turnaround of City Power. A decision has therefore been taken to discontinue the payment of ‘call-out fees’.
“This change will see work dispatched to City Power’s internal resources directly by the dispatch centre. Depot team leaders will monitor the total amount of work versus the available resources, and from there decide and issue work to contractors if it is required – depending on the workload. In this way, we will be able to ensure a sustained and balanced approach to work allocation and cost-effectiveness.
“The new multi-party government is here to make changes to benefit our residents, regardless of whether it is deemed an unpopular decision by certain sectors,” he said.
