Court ruling exposes City Power's electricity billing crisis

Johannesburg’s electricity utility, City Power, has once again found itself in hot water over allegedly inflated electricity bills after the Johannesburg High Court ruled on a long-running dispute with inner-city property owner Ordicode.

The case is one of many triggered by inaccurate municipal billing, which the court notes is “a familiar problem”.

Municipalities often charge rate-payers for services not consumed or apply the wrong tariffs. When errors are not swiftly corrected, disputes escalate, sometimes leading to service disconnections — leaving innocent tenants in the lurch.

"Every municipality is likely, at some point, mistakenly to bill one of its inhabitants for rates, taxes or utilities that they have not consumed, or to use the incorrect tariff in calculating a rate-payer’s liability.

"Too often, though, a municipality’s failure to recognise and correct its mistake promptly leads to protracted disputes about what is in fact owing, and whether the municipality concerned is entitled to disconnect a rate-payer’s services for non-payment.

"The rate-payer’s diminished confidence in the municipality’s ability to recognise and to correct its mistake, and the inevitable tension created by any attempt to disconnect services, often leads the rate-payer to reduce or withhold payments for their ongoing consumption of services, even where it is not clear that withholding payment is proper or lawful," said the ruling.

Ordicode, which owns a mixed-use property on Wolmarans Street, claims that faulty “CT ratios” programmed into its electricity meters led to massive overbilling.

While City Power corrected a R3.8 million overcharge on its commercial meter back in 2020, the company says interest and penalties on that amount were never reversed.

The domestic meter remains a source of contention, with Ordicode alleging that the city continues to charge commercial rates on electricity meant for student accommodation.

The court criticised both sides.

Ordicode’s request that the city “rebuild” its account was described as beyond the court’s powers, while City Power’s legal advisor provided little factual evidence to counter Ordicode’s claims.

Judge Wilson highlighted the importance of proper reconciliation, noting that “Ordicode’s account is incorrect” but the method for fixing it had to follow legal procedures.

Instead of an outright ruling, the court has ordered a structured “debatement” process.

Both parties must review the latest August 2025 account, agree on the correct amount, or provide detailed affidavits explaining their calculations according to municipal tariffs and bylaws.

In the meantime, Ordicode must continue paying charges, unless a dispute is specifically declared.

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