City Power held another electricity cut-off operation on Thursday in Lenasia, Johannesburg, for 10 businesses that owe the power utility R60 million in unpaid electricity rates.
About two months ago the City of Johannesburg’s power utility disconnected the electricity supply worth more than R24m as a result of defaulting customers.
The operation is part of City Power’s efforts to address the growing problem of unpaid electricity bills and non-compliance by defaulting customers within the region.
The power utility is currently facing an inflated debt of R9.6 billion by defaulting customers citywide, of which residents in the Lenasia Service Delivery Centre (SDC) are in arrears of R851m in unpaid electricity bills.
City Power spokesperson, Isaac Mangena, said Lenasia has one of the lowest compliance rates.
“City Power is deeply concerned by the increasing number of businesses and large power users (LPUs) that continue to use electricity without settling their bills, despite their ability to pay,” said Mangena.
Mangena said the power utility managed to clamp down on several local establishments, with Soweto Hotel in Kliptown being the first target to be disconnected from the grid.
A mortuary in Nancefield felt the brunt of electricity cut-off due to an outstanding debt of R8.2m, a shopping centre in Lenasia Extension 1 followed with a mounting debt of R3.7m, and accommodation flats owing R1.5m.
“One of these properties had also illegally reconnected their power, and their connections were removed as part of the operation,” said Mangena.
Among other defaulting businesses, City Power disconnected electricity for two petrol stations.
Despite repeated requests for payment arrangements, the first petrol station in Eldorado Park accumulated a debt of R3m.
Following the discovery that the second petrol station had illegally reconnected itself, a Level 3 disconnection took place as it owes R7.9m unpaid debt.
“The business will be penalised for this illegal action. This disconnection forms part of City Power’s broader strategy to curb illegal connections, which are not only a financial burden but also pose significant risks to the stability and integrity of the electricity grid. Our actions today are critical to maintaining a reliable power supply for all our customers,” said Mangena.
He stated that non-payment of electricity services would significantly impact City Power’s ability to maintain and upgrade energy infrastructure, including investing in new projects while ensuring a stable electricity supply.
Revenue collection operations have been fruitful because the power utility has recovered over R2bn in revenue in the past quarter, said Mangena.
He further urged customers to pay for services, and engage with the utility if facing financial strain to prevent disconnection.
“Failure to do so may result in disconnections, as was the case with a residential customer who owes R2.5m and whose power supply was cut off today.
“To tackle non-payment more effectively, City Power has intensified its revenue collection strategy, with two outreach operations per quarter at each Service Delivery Centre. Those major cut-off operations are carried out weekly, helping to reduce the level of arrears and ensure that customers fulfil their financial obligations,” said Mangena.
The Star