Buffalo City Metro has warned residents to pay their outstanding bills immediately or be cut off.
The city will start disconnecting services from defaulting customers after August 15 to recoup some of the more than R4.6bn owed it as of June 2022.
The metro did not specify any specific outstanding debt amount or overdue period that would determine whose services would be cut.
The major culprits are households who owe the city a whopping R3.156bn, followed by businesses owing R1.390bn and government departments owing R65.374m.
On Monday, the BCM published a notice in the Daily Dispatch urging defaulting customers to make payments to avoid possible disconnections and garnishee orders.
The notice reads: “Notice is hereby given that BCM will be implementing full credit control action in terms prepayment blocking/ physical and remote disconnections of electricity, restriction of water and handing over outstanding debt to appointed debt collectors to recover outstanding debt from government, business and domestic consumers.
“Customers with disputes and queries relating to their municipal accounts are encouraged to visit the municipal offices to register their accounts.
“Unregistered indigent consumers are requested to come forward and submit their application forms ...
“Consumers with outstanding debt are also encouraged to pay their accounts as the municipality will be implementing full credit control policy [blockings and disconnections] in August 2022.”
City ratepayers had mixed reactions to the news, and called for BCM to provide adequate service delivery to encourage payments.
Metro spokesperson Samkelo Ngwenya said the cut-off date for payments was the 15th of every month.
“We have been implementing partial blocking, which means if you owe, we will not fully block you but will take a portion from the electricity purchase to service the debt.
“Now however, people will be blocked in full and will not be able to buy, particularly those who have been overdue for a long time.
“The blocking and disconnections will apply across the board.”
An institutional revenue enhancement strategy was developed by the metro which entails the implementation of strict credit control action to improve the collection rate
A BCM council report states that customers tend to stop paying their accounts when they are dissatisfied with the basic delivery of services.
The report listed various primary reasons for the below-target collection rate in the year under review:
- Impact of Covid-19 — debt collection operations were severely affected by the pandemic;
- Meter tampering — this had increased and had a negative impact on collection from ratepayers;
- Water punitive tariff — the council resolved that the punitive water tariff be relaxed from March 1 2022;
- No-go areas — the city could not read meters and bill certain neighbourhoods due to attacks on staff; and
- Dishonest debt settlement arrangements — people made arrangements to settle their debts in instalments but did not adhere to them.
Beacon Bay Ratepayers Association chair Malcolm Symons said action against those who did not pay what was due to the city was long overdue.
“The genuine ratepayers will pay the municipality, and others just get by.
“Many of them drive luxurious cars and live in lavish homes but they’re not paying their service charges.
“Businesses and government departments have no excuse not to pay.
“When it comes to disconnections the BCM tends to start with the easy targets, when in fact they should be starting with the big guns — the government departments and businesses.
“Payment for services should be part of their operational budget.”
Mdantsane community activist and resident Andile Siko said the services currently delivered by BCM were too poor for them to expect regular accounts payment.
“They are already providing nonsensical services anyway.
“Our electricity is overly expensive, water provision is not reliable, refuse collection is not on schedule and the whole city is just filthy.
“I understand that for the municipality to be able to do its work properly, people need to pay their accounts and that is why I support the move for disconnection.
“However, you can’t disconnect people when you hardly provide the services you request payments for.
“I also understand that the municipality is hit hard by illegal electricity connections and I call on the people to stop exploiting the municipality.”
Kidd’s Beach Ratepayers Association chair Stephen Keet said he did not welcome the move to disconnect defaulters.
The city needed to make it easier for customers to lodge disputes.
“When you call or email the municipal offices there’s usually no response or you’re met with someone who can’t help you.
“The municipality must make it easy for people to lodge complaints and disputes.
“Those who receive municipal services and are not paying, it’s justified to cut them off.
“BCM visited Kidd’s Beach last month to hear and resolve people’s issues with their accounts.
“That was a positive move and if they continue with that programme their revenue collection will certainly improve.”
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