PUBLIC NOTICE ON DISPUTES IN TERMS OF SECTION 102(2) OF THE MUNICIPAL SYSTEMS ACT (“the Act”), READ WITH THE PROVISIONS OF THE MUNICIPALITY’S CREDIT CONTROL AND DEBT CONTROL POLICY (“The Policy”)
The municipality has recently received numerous account queries and disputes concerning the interpretation of the High Court outcome in Afriforum NPC v National Energy Regulator of South Africa and Others (“NERSA case”) and the implementation of electricity tariffs for the 2024/2025 financial year.
- Account holders have raised concerns that the municipality has unilaterally applied and billed unapproved Inclined Block Tariffs (IBT) for electricity.
- Mogale City confirms that a legislated public participation process was conducted to seek comments and inputs from all stakeholders on the Integrated Development Plan, municipal budgets, budget-related policies and all applicable tariffs.
- As required, the municipality submitted a Cost of Supply (COS) study to NERSA as a prerequisite for approval of the 2024/2025 tariffs. Electricity tariffs for this financial year have been duly approved by NERSA as confirmed in an official letter.
- Established under the National Energy Regulator Act (Act 40 of 2004), NERSA is responsible for reviewing and approving tariff increase proposals for all licenced distributors in South Africa, including Mogale City.
- IBT structure is widely used, including by Eskom and other municipalities, and is not new to Mogale City. Domestic indigent and prepaid electricity customers have historically been billed on block tariffs. Similarly, water has been billed on blocks tariffs.
- Furthermore, Clause 29.1.1 of the municipality’s Credit Control and Debt Collection Policy (“Policy”) provides that for a dispute to exist, there must be more than just an expression of dissatisfaction and may not be by implication, a general enquiry and must be submitted within thirty (30) days of the account. If a dispute is raised after this period, it will be treated as an enquiry, the account will not be suspended, and normal credit control procedures will apply.
- Clause 29.1.7 of the Policy provides that should any written dispute arise as to the amount owing on the account in respect of all services by a Consumer, the Consumer shall, pending the resolution and outcome of that dispute, continue to make regular minimum payments based on the average charges for the preceding twelve months prior to the arising of the dispute, plus interest, until the resolution of that dispute. Where no average is available, the amount will be determined by the municipality.
- Should any written dispute arise as to the amount owing on part of the account or service by a Consumer, the Consumer shall, pending the resolution and outcome of that dispute, continue to make regular payments on services that are NOT in dispute PLUS the average charges for the preceding three months prior to the arising of the dispute in respect of remaining part of account or disputed service until the resolution of that dispute.
- In terms of clause 29.1.9 of the Policy, the Municipality’s decision is final and will result in the immediate implementation of any debt collection and credit control measures provided for in this Policy after the debtor is provided with the outcome of the appeal/dispute.
- All account holders are reminded that they are required to make regular payments on their accounts as the municipality is authorised to apply credit control measures in the event of non-payment.
- Account holders are further urged to seek accurate information directly from the municipality regarding tariffs or account details and disregard unverified sources.
The municipality will be conducting a Community Outreach Programme in November 2024 to address questions and concerns on approved tariffs and general account queries. Specific dates per area will be issued through the municipality’s website and other communication platforms.