Business Report

Tshwane Municipality found guilty of overbilling, ordered to pay property owner R89,314

Thabo Makwakwa|Updated

Public Protector advocate Kholeka Gcaleka rules against Tshwane in electricity billing dispute.

Image: Armand Hough/Independent Newspapers

The City of Tshwane Municipality has been found guilty of maladministration and undue delay in correcting the electricity tariffs charged to a residential property, resulting in a substantial financial prejudice. 

The Public Protector’s office has intervened, mediating a resolution that secured a refund of R89,314.77 for the affected property owner.

The complaint was lodged by Top Charge Pty Ltd, the administrator of ERF 79 Lynnwood, Queens Crescent, after they discovered that their electricity account was billed at a commercial tariff instead of the approved bulk residential tariff. 

According to the report issued yesterday by Public Protector Advocate Kholeka Gcaleka, the municipality initially failed to apply the correct tariff despite explicit approval of a bulk residential supply.

“The evidence before the Public Protector indicates that Top Charge applied to the City of Tshwane for electricity supply under the bulk residential tariff for Erf 79, Lynnwood,” the report states. 

“Despite such approval, the City of Tshwane billed the property under a commercial tariff, resulting in substantial overcharging.”

The matter, which lasted over three years, saw considerable delays by the City of Tshwane in not only adjusting the tariff but also refunding the overcharged amount despite repeated correspondence. 

The Public Protector’s report points to systemic weaknesses within the City of Tshwane’s billing controls.

“The protracted delay and initial failure to refund the overcharge in a timely and transparent manner is contrary to section 152(1)(b) of the Constitution, which requires municipalities to ensure the provision of services in a sustainable manner,” stated Advocate Gcaleka.. 

The Public Protector reiterated that municipalities must prioritise the basic needs of communities through accountable governance.

Following an Alternative Dispute Resolution (ADR) process facilitated by the Public Protector’s office, the City of Tshwane acknowledged that the commercial tariff had been incorrectly applied. It recalculated the billing, affecting the refund. 

Nelly Seanego, Municipal Account General Administrator at Top Charge, expressed her appreciation.

“Subject to the credit being effected, I consider the matter resolved and capable of closure.”

thabo.makwakwa@inl.co.za

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