Joburg warns of power, water cuts to businesses with outstanding debt

The City of Johannesburg has warned that hundreds of businesses may have their electricity or water supply disconnected due to millions of rands they owe to the metro.

The city’s group finance department on Wednesday said it would soon roll out its aggressive disconnection drive, targeted at business customers citywide.

While the department says it understands the challenging economic conditions faced by many businesses, it called on eligible business customers to consider entering into an acknowledgment of debt agreement (AOD).

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Kgamanyane Maphologela, the director of customer communications for the finance department, said by opting for an AOD, businesses can pay off their outstanding debts in instalments and avoid the risk of being disconnected from essential services.

Pre-termination notices issued

Maphologela said pre-termination notices have already been sent to all affected business customers across Joburg, warning them about impending disconnections.

He said the city will implement its credit control and debt collection policy to recover the debt owed.

The policy states that customers who fail to pay their outstanding amounts in full or enter into an AOD within the stipulated period, may face disconnection of their electricity and water.

“The credit control and debt collection policy empowers our credit control unit to recuperate outstanding debt from customers owing…

“We understand the current and ongoing economic impact on business. We continue to make a call for all our customers not to wait until it’s too late before they approach us.

“The qualifying customer may conclude an AOD with the city for payment of the outstanding debt in instalments, in accordance with business processes determined by the city,” said Maphologela in a statement.

Illegal connections

Maphologela also warned business customers who have made illegal connections to electricity and water supply, saying the city has the right to pursue legal action against them.

“The illegal connection and/or tampering with water or electricity supply is a criminal offence, which may result in legal action being taken against offending customers.”

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