Operation targets affluent areas with R130m unpaid debt

Aspen Hills Nature and Dainfern Golf Estates collectively owe City Power about R130 million of unpaid municipal rates. Picture: File

Aspen Hills Nature and Dainfern Golf Estates collectively owe City Power about R130 million of unpaid municipal rates. Picture: File

Published Dec 8, 2024

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An operation by City Power led to the restriction of municipal services at Aspen Hills Nature and Dainfern Golf Estates in Johannesburg on Thursday.

Both estates collectively owe about R130 million in unpaid municipal services, however, the power utility was chasing to recover R9 million.

Aspen Hills Nature is sitting on a debt of R19.3 million, while the latter estate owes R110.7 million.

City Power CEO Tshifularo Mashava said the operation was specifically targeting defaulting payers who live in affluent areas.

She lamented that there is an alarming rate of unpaid services in these posh areas by defaulting customers.

City Power targeted 68 defaulting customers at Dainfern Golf Estate, of which one resident had illegally reconnected electricity after a previous operation.

“One of the customers whose electricity supply was disconnected during today’s operation was found to have illegally reconnected power after a prior disconnection,” said Mashava.

The operation was supported by law enforcement as customers often deny officials entry to ensure compliance during cut-off operations.

City Power is currently burdened by an inflated debt of R9.6 billion in unpaid municipal rates.

Mashava said it is essential customers do not fall behind property rates in order for the power utility to render basic services to residents within the City of Johannesburg.

“City Power is proud of the outcomes achieved through our comprehensive revenue collection drive since we started almost a year ago. Between August 2024 and now, we conducted 16 major operations, where we targeted a total debt of R541m, and successfully recovered R46m from 47 of the 135 defaulting customers,” she said.

The operation was led by Joburg metro’s MMC for Environmental and Infrastructure Services Department, Jack Sekwaila and Finance MMC, Margaret Arnolds.

Arnolds expressed concern that even customers in affluent areas are failing to pay municipal rates.

“We are deeply disappointed to see such a staggering amount of debt, even in affluent areas. It is especially concerning that some residents have bypassed their meters,” she said.

Sekwaila added: “If defaulters don’t pay their bills and honour their financial obligation, they should not expect uninterrupted municipal services. Non-payment will no longer be tolerated.”

Mashava urged defaulting customers to enter the Acknowledgement of Debt (AOD) and organise different payment options to settle their municipal rate debts.

“More customers are now entering into Acknowledgement of Debt (AOD) arrangements. These arrangements provide customers with flexible payment options, allowing them to settle their debts in a manageable manner,” said Mashava.