It has been a month since BCM instituted the 80/20 credit control measure to recover funds from ratepayers but the implementation of this measure has led consumers to question its legality.
Businessman JR Dionizio said he was sent a bill for R5,000 for water on March 2 and was unable to resolve a query on the amount before R800 was deducted from his electricity purchases.
This happened despite municipal assurances that prepaid customers who have lodged complaints with the city regarding the billing in their accounts will be spared until their issues have been resolved.
Dionizio said: “I went to the municipal office in Beacon Bay and the lady there did not want to listen to my complaint. She just insisted I settle my bill.
“We are not using this much water, it is impossible. I have asked them if they are reading the meter correctly every month but the clerks at the office were dismissive and sarcastic to me.
“The municipality is deducting money from my electricity purchases but they haven’t even asked me how I will settle my account especially because I tried to query this meter reading in the first place.“
Attorney Brandon Blignaut believes that consumers such as Dionizio are entitled to open a case against the municipality as the roll-out of the 80/20 credit control measure, he said, failed to provide consumers with due notice, especially for consumers who have outstanding queries on their accounts.
Blignaut said: “BCM has to provide you with a letter informing you that your account is in arrears and give you an opportunity to rectify the defect.
“If there is a current dispute that has been lodged with the municipality for that account, then whether they have sent you the notice or not, they cannot proceed with debt collection measures until your query is resolved.
“Sometimes notice is issued and other times not and when money is being deducted from consumer purchases in cases where notice has not been given, then that is unlawful because this contravenes the Municipal Systems Act.
“Furthermore, deducting 80% of someone’s electricity purchase is incredibly steep. For some consumers it’s more of an inconvenience than a financial setback, but the people who are already earning very little are bearing the burden of this 80/20 credit control measure.
“There are other means the municipality could have explored to recover the funds that meet consumers halfway.
“The 80/20 policy is sound in theory but the municipality has to follow legal debt collection procedures such as giving consumers due notice, before deducting the funds or blocking electricity.”
Blignaut encourages consumers to lodge a registered dispute with the municipality on the account and record this correspondence if they may need to take legal action.
“Consumers can also hold the municipal manager personally liable for costs of legal fees and this is done with the hope to prevent the municipality from illegally deducting from purchases and blocking accounts.”
According to the municipality, in the first five days of March, revenue collection increased by over 300% and R3.4m was collected as opposed to previous R1.1m in the first five days of February.
