Riyaz Patel
The South African National Civic Organisation SANCO along with ANC Soweto councillor Mpho Sesedinyane believes a R150 monthly flat rate for electricity could be a starting point to address the country’s non-payment woes.
They believe the move could help foster a culture of payment among Sowetans.
Soweto owes Eskom almost R20-billion – almost half of the total local municipal debt owed to the cash-strapped electricity utility, and Eskom has started disconnecting power at non-paying households as a consequence.
Sesedinyane said the culture of non-payment dates back to apartheid when residents were told not to pay for public services as an act of resistance.
“Our people were told not to pay for services, not to pay for electricity.”
“We need to bring them back and say, we have won the country now. It is us [the ANC] that are governing now, can we now start to contribute and pay Eskom,” Sesedinyane said.
President Cyril Ramaphosa and his deputy David Mabuza have on numerous occasions called on government departments and consumers to pay for services rendered.
“We had to agree (with Sanco) to come up with this project. For Eskom to collect revenue, it is important to start somewhere.”
If a flat rate of R150 is introduced, Eskom would at least generate some kind of income, which is better than none at all, Sesedinyane said.
After three or four years the flat rate can be increased, and at that point people will be used to paying for electricity, he added.
“People will then be in a position to know it is noble to pay for services, especially electricity. And they will be used to paying at the end of the day.”
Sesedinyane said prepaid meters will not be the solution.
“Our people will start connecting themselves illegally and they will not pay for electricity.”
The South African Local Government Association (SALGA) – an association comprised of 257 local governments – however, does not think a flat rate would work.
Spokesperson Sivuyile Mbambato told Fin24 that the proposal was “unsustainable.”
“We do not have the luxury of cheap and excess electricity like we did more than 20 years ago. Everyone must pay for what they use,” he said, echoing the sentiments of the vast majority of people on social media who said Soweto is not special and all must be treated equally.
Salga, in contrast to Sesedinyane, is supportive of the prepaid solution. “Prepaid will be the answer in Soweto and other townships but the residents still reject that. This is an indication of how deep is the culture on non-payment in our communities,” said Mbambato.
SALGA’s National Executive Committee met last week to discuss solutions to rising municipal debt, among other issues.
The meeting resolved that a two-phased approach be implemented to address rising debt, according to a SALGA statement.
Phase 1 puts forward stricter enforcement by municipalities on credit control measures. This means municipalities will have to target government properties and businesses, through disconnection if there is “sufficient merit” in line with their credit control policies, the statement read.
Phase 2 involves an analysis of debt to classify debt which must be written off, or is realistically collectable.
The proposal follows a period in which Salga interacted with various parliamentary portfolio committees on matters relating to debt owed by municipalities.
