The eThekwini Municipality Energy Management Directorate (EMD) is proposing that the debt relief mechanism be suspended due to the lack of system integration.

The proposal to suspend the 80/20 and 50/50 debt relief mechanisms was raised at a recent municipal Trading Services Committee meeting. Both programs were reintroduced as debt recovery mechanisms in May 2022 to assist customers in repaying outstanding municipal electricity debt through a proportional deduction method.

The EMD stated in its report to the committee that there was a lack of integration between the vending system and the billing system, resulting in a fragmented and inefficient approach to debt collection. Another reason for the suspension was that the absence of defined threshold limits on debt values for the programs has affected the municipality’s ability to recover outstanding debt promptly, especially in cases where large debts are owed, and customer electricity purchase levels are low.

The proposed suspension is expected to be discussed at an eThekwini council meeting in December 2025.

Saul Basckin, ActionSA Councillor, stated that for years, residents have carried the burden of a system that failed them.

Basckin, who is also a member of the Trading Services committee, said money was deducted, yet their debt never decreased. “This situation was unjust and unacceptable. The suspension of these programmes is a victory for every resident who has paid faithfully despite a broken system. ActionSA will continue fighting to ensure no household is disconnected, every cent is accounted for, and that full transparency, fairness, and accountability are restored in eThekwini,” he said.

Basckin said the system failure undermined residents. He explained that residents purchasing prepaid electricity — for example, R100 with R20 intended for debt reduction experienced the following:

• The R20 was deducted,

• It did not appear on their municipal statement,

• Interest continued accruing on the unchanged balance,

• Residents were financially disadvantaged through no fault of their own.

Basckin stated that this effectively amounts to a violation of the Municipal Finance Management Act (MFMA), which requires accurate, transparent, and lawful billing.

“The municipality has since acknowledged these failures and confirmed that the new Oracle-based billing solution will only be implemented in June 2026. With the suspension of the 80/20 and 50/50 programmes, residents will now have a choice — something they were previously denied,” he said.

Basckin said the suspension ensures:

• Residents receive the full value of their prepaid purchases,

• No further deductions occur until the system is functional,

• The municipality returns to MFMA-compliant billing practices.

zainul.dawood@inl.co.za

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