In a bold move to tackle mounting debt, Johannesburg’s power utility, City Power, has successfully recovered a staggering R1.5 million from a single client during a high-stakes cut-off operation across several key areas in the Inner-City Service Delivery Centre (SDC). The operation, which took place on Thursday, focused on high-debt defaulters in Bellevue, Berea, Jeppestown, Houghton Estate, Yeoville, Parktown, and the Johannesburg Central Business District (CBD).
City Power spokesperson Isaac Mangena confirmed that this was part of the second phase of a broader strategy aimed at recovering more than R105 million in unpaid bills from both residential customers and Large Power Users (LPUs). The operation demonstrated the utility’s firm stance on enforcing payment, despite some challenges.
“During the operation, tensions ran high in Parktown when two property managers attempted to obstruct our officials and law enforcement officers from accessing a property to carry out a disconnection,” Mangena explained. The property in question had an outstanding debt of over R5.2 million and had not made a payment since December 2018. The property managers tried to present a 2021 court order that had already expired in an attempt to delay the disconnection, but after long negotiations, they were able to make a partial payment of R1.5 million, well below the agreed R2 million down payment.
The operation saw the disconnection of six properties, with City Power continuing its disconnection efforts in the coming days. Mangena emphasized the utility’s balanced approach, which combines strict enforcement with the flexibility to negotiate reasonable repayment agreements where possible.
Arsenio Cossa, General Manager of the Inner City, expressed satisfaction with the operation’s results, highlighting the importance of the initiative in City Power’s overall revenue collection strategy. “This operation is a testament to our commitment to improving revenue collection. While challenges remain, we are seeing positive progress with customers coming forward to make payment arrangements to avoid further disruptions,” Cossa said.
The Inner City SDC plays a crucial role in City Power’s efforts, with a significant portion of the utility’s debt tied to the area. The total debt across the utility currently stands at a staggering R9.86 billion, with R2.5 billion of that amount attributed to the Inner City. The successful collection of R12.4 million in the first quarter of the 2024-2025 financial year, from just ten key customers, signals positive momentum toward meeting City Power’s targets.
Nqobani Mzizi, Senior Manager of Revenue Enhancement at City Power, called attention to the growing issue of non-payment, especially among customers who are financially capable of settling their debts. “Unfortunately, we are seeing a culture of non-payment among some customers, who, despite being financially able, are using the legal system to delay their payments,” Mzizi said. He emphasized that such tactics not only hurt City Power’s financial health but also strain the utility’s ability to provide essential services to the city. “We must continue to take decisive action against those misusing the system to avoid their responsibilities,” Mzizi concluded.
With the Inner City SDC accounting for a major share of City Power’s debt book, the utility’s ongoing cut-off operations are pivotal in addressing the financial challenges facing the power provider and ensuring that customers meet their obligations.
