Did you know? City of Cape Town recovers debt via prepaid electricity purchases

Lester Kiewit speaks to Alderman Xanthea Limberg, Mayco Member for Energy, to discuss Cape Town’s policy of collecting municipal debt via prepaid electricity purchases.

Listen below.

The City of Cape Town has defended one of its debt collection practices, despite admitting that it is unfair to some residents.

Under its Credit Control and Debt Collection Policy, the City can deduct municipal debt via the electricity prepaid vending system. 

This means that a proportion of the money for prepaid electricity will go straight to the City, rather than providing electricity units.

But what about cases where those paying for the electricity are not the debtors? For example, in the case of those renting a property from a landlord?

Limberg explains why the City only transacts with property owners and not tenants.

"The property owner is ultimatley legally responsible for the property."

- Alderman Xanthea Limberg, Mayco Member for Energy - City of Cape Town

"It's an incredibly difficult scenario where you are dealing with the tenant and not always able to reach the property owner."

- Alderman Xanthea Limberg, Mayco Member for Energy - City of Cape Town

Limberg admits it is an unfair situation for affected tenants, but says the City relies on the money to provide municipal services.

"It isn't necessarily fair to put that burden on the tenant, but the City is also responsible for recovering its debt in order to ensure we can sustain our municipal services."

- Alderman Xanthea Limberg, Mayco Member for Energy - City of Cape Town

"It's also not fair to have some pay and others not."

- Alderman Xanthea Limberg, Mayco Member for Energy - City of Cape Town

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Scroll up to the audio player to listen to the interview.