Customers that are in arrears will face the Consequences

20 January 2023

Customers in arrears will soon face the consequences

Knysna Acting Municipal Manager Roland Butler has announced that the municipality will be acting against customers whose accounts are in arrears. “Municipal taxes that are in arrears will be recovered against the value of electricity units purchased,” he said. “Consumers who are in arrears and do not yet have a pre-payment electricity meter risk having their electricity disconnected or water restricted from 31 January 2023.”

“These actions will be implemented in terms of the Knysna Municipality Customer Care, Credit Control, Debt Collection, Indigent, and Tampering Policy,” Butler explained. “Non-payment of municipal accounts has a direct effect on the municipality’s revenue, which impacts our ability to maintain or upgrade infrastructure and deliver services.”

“The income generated by municipal rates and charges is critical to the continued delivery of services,” said Butler. “This is even more true now, as factors beyond our control like increased load-shedding and a global economy in crisis are placing local municipalities all over the country under severe additional pressure.”

Section 8.16 of the policy allows the municipality to raise and recover payments in respect of arrear municipal taxes and other municipal levies, tariffs, and duties in respect of services such as water, refuse removal, and sanitation via a percentage of the value of units purchased for electricity allocated to any arrears, as determined by Council. It also makes provision to enforce satisfactory arrangements with consumers in arrears by blocking the prepaid meter in order to prevent purchasing of electricity and also compel the consumer to enter into a service agreement with the Council and pay the necessary fees as per the policy.

Section 9.2 states that consumers who are in arrears with their municipal account and who have not made arrangements with Council will have their supply of electricity, water, and other municipal services suspended, restricted, or disconnected. Council also reserves the right to deny or restrict the sale of electricity to consumers who are in arrears with their rates or other municipal charges.

According to section 8.15, customers in arrears who are supplied by means of an electrical credit meter must convert to a pre-payment meter or risk having their electricity supply cut or water supply restricted. The arrears total and conversion fee will be added as a surcharge, or auxiliary, to the pre-paid cost, repaid with each purchase of electricity until the debt is fully recovered.

“It is a pity that we have to resort to these measures, but we have been left with no choice,” Butler said. “Those who are in arrears must realize that their debt is having a negative effect on everyone who lives in, visits, and does business within Greater Knysna. Your non-payment is impinging on everyone’s quality of life. Thank you to those residents who regularly pay their accounts in full. We appreciate your commitment and contribution to building an inclusive, innovative, inspired Knysna.”