City Power cracks down on defaulters for revenue collection
The power utility had to disconnect power from petrol stations, a mortuary, a shopping centre and a block of flats.
City Power (CP) did a targeted revenue collection operation in the Lenasia Service Delivery Centre (SDC) on November 14, disconnecting 10 businesses and large power users (LPUs) with outstanding collective debts of R60m.
The operation is part of CP’s ongoing efforts to address the growing problem of unpaid electricity bills and non-compliance in the region.
The Lenasia SDC has significant arrears, with customers owing R851m.
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“This area has one of the lowest compliance rates, and we are deeply concerned by the increasing number of businesses and LPUs that continue to use electricity without settling their bills, despite their ability to pay,” said Isaac Mangena, the CP spokesperson.
Among the defaulters disconnected were two petrol stations, a mortuary, a shopping centre and a block of flats.
A well-known petrol station in Eldorado Park has a debt of R3m, while a second owed R7.9m.
“Despite repeated requests for payment arrangements, these businesses failed to address their outstanding balances,” Mangena explained.
CP technicians also found that one of the petrol stations had illegally reconnected itself, prompting a Level 3 disconnection (will no longer be a CP customer and will have to open a new account and pay another deposit) and penalties.
Other businesses disconnected included a Nancefield mortuary with an outstanding bill of R8.2m, a shopping centre in Lenasia Ext 1 owing R3.7m and a block of flats with a debt of R1.5m.
Mangena said removing illegal connections is essential to reduce system losses, would ensure the network’s stability and enforce payment compliance.
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“Our actions today are critical to maintaining a reliable power supply for all our customers,” he emphasised.
CP is committed to addressing the non-payment challenge, which significantly affects its ability to maintain and upgrade infrastructure, invest in new projects and ensure a stable power supply across the city. Defaulting customers city-wide presently owe CP R9.6b.
However, despite this challenge, the utility has seen positive results from its revenue collection efforts. In the past quarter alone, it collected over R2b, showing the commitment of many to pay for services they use.
CP has intensified its revenue collection strategy, with two outreach operations per quarter at each SDC, To tackle non-payment more effectively.
These major cut-off operations are done weekly, helping to reduce arrears and ensure customers fulfil their financial obligations.
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CP urges all customers, residential and commercial, to make timely payments and engage with the utility if facing financial difficulties.
“A failure to do so could result in disconnections, as was the case with a residential customer who owes R2.5m and whose power supply was cut off today,” Mangena warned.
CP encourages customers with outstanding debts to contact it and make payment arrangements to avoid a disruption of services.
“We are ensuring the network remains stable by addressing unpaid bills and safeguarding future service improvements for all customers,” Mangena concluded.
