Ratepayers slam eThekwini for mishandling electricity debt relief programme

The eThekwini Ratepayers Protest Movement (ERPM) stated that the 80/20 debt agreement introduced in May 2022 was a clear violation of the Municipal Finance Management Act (MFMA). 

The ERPM was responding to the eThekwini Municipality’s announcement on Thursday that the 80/20 prepaid electricity debt relief programme has been suspended with immediate effect.

Asad Gaffar, the chairperson of ERPM, described it as a devastating blow to the many families who are struggling to survive the municipality's rigorous credit control measures. 

This decision to suspend the programme follows a review conducted by the city’s Energy Management Directorate together with the Finance Department.

The review assessed the programme’s performance since it was reintroduced and focused on:

• How effectively the programme assisted residents in managing electricity debt. 
• Its impact on electricity losses and revenue collection. 
• Challenges related to the systems and processes used to manage prepaid electricity meters. 

The municipality explained that the 80/20 and 50/50 electricity debt relief programmes were reintroduced in May 2022 to help residents repay outstanding electricity debt.

Under these programmes, a portion of each prepaid electricity purchase was allocated towards reducing debt.

However, ongoing system-related challenges have made it difficult to continue operating the programme in its current form.

“At present, the electricity vending system is not fully integrated with the municipal billing system.  This lack of integration has resulted in an inefficient and fragmented debt-collection process, complicating the accurate recording of payments, the reconciliation of customer balances, and the monitoring of the programme's overall effectiveness,” stated the municipality. 

In addition, the absence of clear debt-value thresholds has limited the municipality's ability to recover large outstanding debts timeously. This is particularly evident in cases where customers with high arrears make very small electricity purchases, resulting in minimal debt recovery.

Following the review, municipal officials agreed that the programme must be integrated with the new systems to operate effectively. 

“Applications that were pending at the time of suspension will be placed on hold. Any credit allocated for the acquisition of prepaid meters will be used to reduce outstanding electricity debt,” the municipality stated. 

The suspension period will also allow the municipality time to integrate systems across relevant departments.

The municipality explained that 20% of the amount paid by customers will continue to be manually adjusted and reflected on their municipal accounts.

It is working on a process that will ringfence the bulk of the outstanding debt, making sure that it does not incur further interest.

Gaffar said the municipality's inaction is not only unacceptable but also a blatant disregard for the rule of law and the rights of its citizens. 

“The municipality is well aware of this. Yet, they continue to drag their feet, exposing the city to litigation and wasting taxpayer resources. This is nothing short of gross maladministration and corruption,” he said.

The ERPM warned the public to be cautious of opportunistic individuals and organisations claiming to have solutions to these issues. 

“We will not stand idly while our members are pushed to the brink of financial ruin. The ratepayer is the lifeblood of the city, and it's time we were treated as such. Join us in this fight. Together, we can make a difference.” Gaffar said. 

The ERPM demands that the municipality:

• Immediately halt all credit control actions against affected residents. 
• Provide a clear plan and timeline for resolving the 6kl and 80/20 issues. 
• Hold accountable those responsible for this maladministration. 

zainul.dawood@inl.co.za