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City Power to ‘intensify’ efforts to recover unpaid electricity tariffs

The utility will start the 2018/2019 financial year with a R1.2 billion deficit and says it needs to collect about R3 billion in unpaid tariffs to regain stability.

Picture: City Power

JOHANNESBURG - City Power says it will be intensifying its revenue collection strategies to recover unpaid electricity tariffs that have left the utility with a deficit.

The utility will start the 2018/2019 financial year with a R1.2 billion deficit and says it needs to collect about R3 billion in unpaid tariffs to regain stability.

City Power has cited an unpaid VAT refund from Sars of over R300 million and a terminated contract with Eskom, which accounted for over R200 million, as the main contributors to the deficit.

City Power spokesperson Sol Masolo explains: “Obviously we’ve got to be knocking on people’s doors. We’re going to be changing meters that are not working, and we’ll be replacing old metres. We will replace the functional metres with smart metres and install prepaid metres in certain areas.”

(Edited by Shimoney Regter)