Tshwane's power cut campaign faces backlash as businesses demand dialogue

The City of Tshwane’s revenue collection drive, dubbed Tshwane Ya Tima, has drawn criticism from the business community, which argues that the initiative's confrontational approach to collecting debt from defaulting customers is hostile.

This comes after the city this week embarked on Tshwane Ya Tima in a bid to recoup approximately R30 billion in outstanding municipal debts by cutting off power supply to major businesses and residents with unpaid bills.

KNG Properties, the landlord of Shoprite in Arcadia, has been identified as a significant debtor, owing a substantial amount of R7,343,502.57 to the city.

The Sheraton Hotel is facing recurring power outages due to an unpaid electricity bill totalling R1,418,109.42, which has resulted in the city intermittently cutting off its power supply.

Chrys Haitas, executive director for Strategic Business Development at the Capital City Business Chamber (CCBC), advocated for a more collaborative strategy to recover outstanding funds from customers in arrears instead of abruptly cutting off electricity at business premises.

She said: "Collection of revenue and paying for services is a critical step in ensuring proper service delivery and infrastructural upgrades by the City of Tshwane. The CCBC is in full support of measures taken to ensure effective revenue collection."

However, she said prior to disconnecting the businesses with outstanding accounts, "it would have been smart to have first connected with them and discuss possible solutions".

"Many businesses are dealing with disputes on incorrect billing and incorrect meter readings at the moment. Various of these challenges have been referred to the city and successfully resolved through one-on-one meetings with the relevant department and the specific business involved."

Haitas expressed concern over the lengthy delay in reconnection times, where customers who had already settled their outstanding debts were left waiting for an unnecessarily long period to have their electricity restored.

"The timeframe to switch power back on is way too long. We know of businesses that are still off two days later, even with proof of payment having been forwarded. Reconnection should be done at least within three hours," Haitas said.

France Boshielo, the MMC for Utility Services, denied claims that municipal workers are slow to reconnect customers to the electricity grid after they have settled their outstanding debts.

“It can’t be that they come after two days, but it depends on the number of their job counts. They should be able to come to you immediately after a proof of payment has reflected on the city’s system,” he said.

Sarah Mabotsa, the MMC for Economic Development and Spatial Planning, said she was unaware of the negative effects of Tshwane Ya Tima on local businesses.

She said she couldn't gauge the revenue collection campaign's impact because businesses haven't spoken out about their concerns.

She highlighted the recently council-approved debt relief programme aimed at supporting businesses struggling to pay their municipal accounts. 

The programme offers various benefits, including a 100% write-off for debts older than three years, provided businesses settle all outstanding debts incurred within the last three years. Additionally, businesses can receive a 100% write-off of interest and miscellaneous charges if they settle all outstanding debts that are less than three years old.

Haitas said the Chamber supports the recent drive by the city in waiving disputed and long outstanding accounts.  

Tshwane Mayor Nasiphi Moya advised businesses to approach the city and make a payment arrangement if they couldn't afford their bills.

"Big businesses must do the right thing; they must learn to comply," she said

rapula.moatshe@inl.co.za