‘But we are paying’ : Business owners angry after City Power cuts off power due to debt of over R30 million
An unannounced power supply disconnection by City Power, aiming to recover R36.2 million, has left 11 businesses and one residential complex in the dark, and has sparked outrage from some business owners claiming that they have paid their electricity bills.
The City of Johannesburg, power entity, embarked on a revenue collection drive, which was targeting non-compliant customers.
City Power’s Randburg Service Delivery Centre (SDC) led a revenue collection drive across the area on Thursday, targeting customers in default.
The customers who did not pay their electricity bills among others, include the RandPark Ridge Shopping centre which owes over R4 million, Lifestyle Home Gardens owing R9 million, and an independent power and water producer business which owed about R4 million.
The cut off operation commenced at the RandPark Ridge Shopping centre, where the power entity’s personnel arrived unannounced and disconnected the power supply.
This led to some of the business owners furious, and came out of their offices to check out what was happening.
However, as they went outside they were greeted by the officials dressed in their reflective uniforms, disconnecting the power supply.
The owner of a laundry, known as ‘Jimmy’ expressed frustration that the power entity did not inform the tenants and landlord about the disconnection.
“They were supposed to tell the landlord first that they are coming to disconnect the power supply… Now this will end up affecting even paying tenants. What they are doing is not good at all,” he told IOL.
Operations has been halted at Rand Park Ridge shopping centre, as @CityPowerJhb has disconnected electricity supply due to unpaid debt exceeding R4 million.
— Simon Majadibodu (@MajadiboduSimon) October 10, 2024
The Randburg SDC, is leading the cut off operation to recover R36.2 million owed by 12 non-compliant customers.@IOL pic.twitter.com/F1HBzfsUC4
He claimed that he paid his landlord, and that the responsibility lies with him for settling the debt.
“This will badly affect my business because we paid him. Now, we are going to stop the operations and we won’t generate any income as a result of this.”
He added: “This will badly affect us, it will ruin our business because we are paying.”
After the disconnection, some retail stores were seen closing their doors, while others resorted to using generators.
Just a few minutes after the disconnection, R1.4 million was paid by the Lifestyle Home Gardens to the power entity, and R2.2 million paid by the independent power and water producer business, the officials on-site confirmed to IOL News.
Meanwhile, City Power’s revenue management specialist Tshepo Ramuki, revealed that the Randburg SDC is owed over R650 million, which prompted the cut off operation.
“We have been sending letters of credit payments to the non-paying customers, however, our call payments were ignored by these customers. Hence, we resorted to disconnecting the power supply from them through the cut off operation.”
Ramuki said the entire power entity is sitting with staggering debt of about R9.8 billion.
“We are doing this drive because, so that we can be able to service our infrastructure, and be able to provide uninterrupted power supply services to our customers.”
He said they have two options that non-paying customers can use to settle their bills, with the first option being the customers paying 50% of what they owe and paying the remaining balance for six months.
“The second option is to pay 30% and pay the remaining balance in three months.”
Ramuki urged the customers that are battling to pay their debts to come forward and negotiate payment methods.
IOL News