The Mogale City Local Municipality (MCLM) will implement debt collection measures following the approval of its 2024/25 electricity tariffs by the National Energy Regulator of South Africa (Nersa). The municipality aims to recoup R3 billion in unpaid debts and improve service provision.
The approved National Energy Regulator of South Africa tariffs have allowed the municipality to implement credit control processes.
Mogale City Local Municipality communication officer Refilwe Mahlangu said with the recent 2024/ 25 electricity tariffs approval, MCLM's Credit Control Division wishes to sensitise residents, businesses and other affected parties that the municipality will now implement its required debt collection measures.
She continued to state that this approval came after MCLM's tariff approval request to Nersa followed by a submission of their Cost of Supply Studies, where this approval therefore implies the municipality will commence implementing the required debt collection and credit control measures not only to recoup R3b debt stemming from non-payment for services but also increase collection for improved provision of municipal services.
“Although the current rates have been disputed by resident associations, opposition political parties, businesses and residents alike, it is critical to mention that tariffs must be cost-reflective. For that reason, approved tariffs were designed to promote efficient energy usage by charging costly fees for high usage and less for low energy consumers. This structure also encourages domestic and micro enterprises prepayment account usage, allowing users to manage their consumption,” she added.
“After several engagements and encouragement for residents and businesses to pay accounts that are in arrears or enter a payment arrangement for increased financial relief, the municipality is obliged to enforce the required credit control measures for its own financial sustainability and to better service our constituency,” Mahlangu concluded.
Electricity Tariffs Debt Collection Mogale City Municipality Nersa Approval Municipal Services
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