The billing crisis in Joburg requires significant long-term investment, technical upgrades and political will to fix, says DA councillor and shadow finance MMC Chris Santana.
SA’s richest metro, the country’s economic and financial hub, has been dogged by a problematic billing system since 2009, resulting in late bills, incorrect billing, lost credit notes, non-corresponding meter numbers and other inaccuracies.
However, Joburg’s group finance communications director, Kgamanyane Maphologela, said the city would first need more clarity on how a “billing crisis” was said to be persisting.
“According to the city, there is no billing crisis. Should you have evidence relating to this alleged crisis, we request that you share it with us so that we can give it the attention it deserves,” he said, assuring ratepayers that Joburg’s billing system was fully functional.
“It can generate, issue and manage bills as expected,” he said.
Speaking to Business Day, Santana said while the Joburg metro, the largest in the country, had made several efforts to address the issues, “the billing crisis has not yet been fully resolved”.
“The root causes stem from outdated and malfunctioning billing systems, as well as significant irregularities in data management and customer records,” he said.
“The challenges remain multifaceted and persistent. Despite the introduction of a new revenue management system over the years, the city continues to face issues such as inflated and inaccurate bills, delayed statements and unresolved customer queries.”
He stressed that a particularly concerning development was the reversal and immediate rebilling of security deposits, “which has led to unjustified disconnections — sometimes even affecting fully paid-up customers”.
“These disconnections have raised concerns of extortion, with residents being pressured to make payments to reconnect services. This has further exacerbated frustrations among residents.”
A recent high court ruling by acting judge Stephan van Nieuwenhuizen highlighted the ongoing failures within the city’s accounting and billing systems, underscoring the severity of the problem, Santana said.
He said resolving the billing crisis required a comprehensive, multifaceted approach, including:
• Upgrading billing software: The current system is outdated and unable to handle the scale of Joburg’s population and the complexity of its service delivery. A more efficient and reliable system is essential for managing the city’s growing needs.
• Data cleansing and verification: Accurate billing can only occur if customer data is thoroughly reviewed and corrected. Many residents have been incorrectly billed due to errors in their account records or address details. This process should also ensure that vulnerable communities are properly accounted for under extended social programmes.
• Staff training and capacity building: A critical component of resolving the crisis involves enhancing staff training to handle customer queries efficiently and manage the billing system effectively. This also includes strengthening the capacity of the ombudsman’s office to address complaints and resolve disputes swiftly.
• Increased transparency and communication: Transparent, regular communication with residents is crucial to rebuilding trust. The city must ensure that residents are informed about adjustments to their bills, available payment options, and updates on system improvements.
Santana stressed that the persistence of the billing crisis was also attributed to a combination of historical, financial, and operational factors:
• Historical underinvestment: The city’s billing infrastructure has not been updated in line with best practice, resulting in a backlog of unresolved issues.
• Poor management and governance: Administrative inefficiencies and mismanagement at various levels of government have contributed to the prolonged nature of the crisis. A lack of accountability has meant that addressing the problem has not always been prioritised.
• Financial constraints: The city has faced significant financial challenges, and the costs associated with overhauling the billing system have been considerable. At times, other priorities have taken precedence over fixing the billing issues.
• Complexity of the issue: The billing crisis involves multiple interconnected systems, departments, municipal-owned entities and service providers, making it a highly complex problem to resolve.
“In short, a full resolution will require significant long-term investment, technical upgrades and political will,” Santana said.
The Buccleuch Residents & Ratepayers Association, Parktown North Ratepayers & Residents Association, Parkview Residents Association, Rivonia Residents & Ratepayers Association and Saxonwold & Parkwood Residents Association did not respond to requests for comment.
Challenges with the metro’s billing system still persist despite the municipality paying nearly R70m of a R404m partially completed upgrade contract that was terminated early in 2021 with JSE-listed technology company EOH.
Business Day politics editor Hajra Omarjee is among residents affected by incorrect billing.
“My bill was on average R2,000 to R3,000 a month for the last two years, in the last six months it started fluctuating between R4,000 and R7,000 a month,” Omerjee said.
“When I looked closely at my statement, I also noticed extra service fees that were not there before and that I was now been charged a higher tariff for the electricity used.
“Attempts to load a picture of my meter reading monthly on to the system have also not been successful, as the system is not user-friendly. Also, the actual meter readings are not in line with the estimated meter readings on the bill.”
Omarjee said she had also heard numerous complaints from her neighbours in and around Olivedale, Joburg, with similar challenges. They were being told by City Power that they must pay or [they] be disconnected and that if there was a mistake, they would be refunded.
Previous administrations under erstwhile executive mayors Parks Tau, Herman Mashaba and the late Geoff Makhubo, the late Mpho Moerane, Mpho Phalatse, the late Jolidee Matongo, Thapelo Amad and Kabelo Gwamanda all struggled to end the billing crisis in the municipality.
It remains to be seen whether the current ANC mayor, Dada Morero, will be equal to the task.
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