City Power switches off defaulting businesses in Joburg

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Johannesburg power utility, City Power, has cut the power supply to about eight businesses that have not been paying their massive electricity bills. According to City Power, the targeted businesses together owe over R35 million.

City Power moved from one location to another. It successfully disconnected the power to the Meredale Estates, in the south of Johannesburg, that owes the power utility over R7 million.

According to reports, the entity last paid in 2014.

“The non-payments affect the revenue in a whole totality. Technical losses that we experience as City Power, as well the revenue that we should be collecting, especially when it comes to LP and businesses … it’s a humongous amount of money! It has a very negative impact on City Power when it comes to the revenue collection in total,” says Mpho Khoza from City Power.

The second location, the Booysens Hotel, owed over R750 000, but was on track with payments. However, as their payment was late in May, City Power had to cut them off.

The Johannesburg power utility emphasised that customers should honour the payment dates.

“We are buying power from Eskom. We need to pay Eskom on a monthly bases and these customers are not assisting us having to close those gaps. We are running a business whereby it’s with losses and we are not getting any revenues from the customers. So, we would like to also ensure that when we render our services to our customers, whether it’s residential or businesses we urge customers to please pay their debts,” Khoza added.

Khoza says they are more worried about the debt they owe to Eskom, and that they try to meet customers half-way.

“Customers, we provincially give them 50% with an AOD for three months because it is business or either the 30% AOD if they don’t have the total amount that they are owing us then they will be reconnected,” says Khoza.

Video: City Power switches off defaulters: