City about-turn on deduction of woman's electricity purchases as debt recovery

Deputy mayor Ian Neilson Picture: Courtney Africa/African News Agency (ANA)

Deputy mayor Ian Neilson Picture: Courtney Africa/African News Agency (ANA)

Published Jul 31, 2019

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Cape Town – After months of pleading with the City of Cape Town to stop deducting more than half of a 65-year-old woman's prepaid electricity purchases as a rates arrangement was made, a single Cape Times query has resulted in the City reviewing the account and resolving to stop the deductions.

The divorced Kraaifontein woman whose only source of income is monthly maintenance, appealed for help after she said the City started deducting

significant amounts from her electricity purchases when she fell behind with her rates account.

She wants to remain anonymous for fear of further victimisation.

“If I bought for R60, they deducted R42.60 as debt recovery, and I would receive 8.7 units of electricity. I eventually could not afford this any longer and made an agreement to pay R300 per month on my arrears,” she said.

Once the arrangement was made, she was informed the city would still recover debt on her electricity purchases until her arrears were paid in full, she said.

“This would, according to the consultant at Kraaifontein Nunicipality, take eight months. I contacted my DA ward councillor, who emailed me an application to apply for rates rebate, which I did,” she said.

“This, however, does not help the situation (regarding the prepaid deductions). I then decided to take a closer look, and to my horror discovered that for the period June 28 to July 26 my total electricity purchases amounted to R1010, from which the municipality deducted an amount of R731.30 for debt recovery.

“I have a total of R1200 left a month to live on after meeting my financial obligations,” she said.

After taking up her case with the City, deputy mayor Ian Neilson responded later in the day that the City had reviewed and requested to suspend the prepaid electricity deductions.

“As there is currently a payment arrangement on the account, we have reviewed and requested to suspend the prepaid electricity deductions. 

"However, Ms will be required to adhere to the agreed payment arrangement until her account is fully rehabilitated. Any default will result in the deduction being reinstated without any further notice,” he said.

The incident, said by civic organisations Stop CoCT and Dear SA to be a common one, comes as calls have been growing for the City to lower its controversial increased electricity levy.

Stop CoCT and Dear SA have pleaded for the tariffs to be re-examined.

Sandra Dickson of Stop CoCT said she had heard many versions of the Kraaifontein woman’s story, and said the City was inaccessible.

“It is, all in all, a horrible way to deal with people. People who fall behind go to their municipal office, and they are asked to put down R5 000 which they don’t have,” Dickson said.

She called for the City to team up with civilians and analyse accounts in arrears, especially for the most

vulnerable.

“It is an absolute mess, the City is inaccessible, they are insensitive, unsympathetic. The goal is not to sit and help a person, but to get rid of them,” Dickson said.

SA Human Rights Commissioner Chris Nissen said he was aware of numerous complaints of this nature.

He also questioned the legality of the deductions once an arrangement had been made.

“Morally, this is not right,” Nissen said.

“The poorest cannot afford the basics and they still get punished.

“Treat our people with respect and dignity in times when people are struggling to keep their heads above water,” Nissen said.

The City must have an income, he added, but it did not have to be extracted from the most vulnerable.

Neilson added that based on the application received this month, the woman has been approved to receive a rate rebate of 60%, reducing her payable monthly rates charges.

“The approved rebate will remain valid until the next General Valuation, Supplementary Valuation, or until a change to the gross household income,” Neilson said.

“The owner is required to immediately inform the city should the gross monthly household income change.

“Where there is a change in the gross household income, the owners must apply for the change in the rebate within three months of the change in income, failing which no such rebate will be granted/adjusted for the applicable financial year.”

The city deals with municipal debt holistically, he said, in terms of the relevant legislation and the city’s approved by-laws and policies.

“We have to send out invoices advising the debtor of their liability.

“If the accounts are not settled after due date, appropriate debt collection actions must be taken.

“With regard to (this) account, (it) currently has total debt outstanding of R2030,39 and the current prepaid electricity deduction is based on her municipal property valuation of R1.1 million,” Neilson said.

Cape Times

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