R12m bill for phantom electricity

[BBSA]

http://www.iol.co.za/news/south-africa/gauteng/r12m-bill-for-phantom-electricity-1.1129773

A R12 million electricity bill has resulted in a Roodepoort man losing his business after two years of unsuccessfully battling the Joburg billing chaos.

Warren Ferreira, who has been running his business on power from a car battery, has in reality been without electricity since July 2009. He was cut off for non-payment, couldn’t pay the amount needed for reconnection, and so made his own arrangements.

Ferreira and his family have been running the putt-putt course on Florida Lake for the past 25 years.

Earlier this week he was forced to close his doors because of the loss of business through having no power for so many years.

The problems started in 2009 when the billing became irregular.

“At the time I was paying about R800 a month and I was always up to date. Then suddenly I got a bill for R9 000. That was the start of it,” he said.

Ferreira couldn’t afford to pay it and he was cut off in July 2009.

Since then, he has run his business using a car battery.

“I operate my till and music system around the putt-putt course through this battery. But I have lost a lot of business because I can’t open at night because I have no power. Also, I cannot serve cold drinks because the fridges are disconnected,” he said.

He visited the council offices in Braamfontein many times, to no avail.

He says he was not offered the option of a payment plan and was confronted by “arrogant staff”.

Then last year he started getting erratic bills ranging from R90 000 to R3 million each month.

“There were different amounts each month. It is obvious someone must have been fiddling with these figures,” he said.

On Wednesday he received his biggest bill to date – for just over R12m.

“It was the last straw. I went to the council offices. They confirmed I was cut off in 2009 and that I have no meter. But, they said, there were seven meters on my account.

“ They could not explain how this happened. They gasped when they saw this amount, but had no solution to offer. I am back to square one,” he said.

Ferreira said he was going to take legal action against the city for the loss of his business.

“My business went under because of their incompetence, and their inability to resolve it,” he said.

Ferreira is not the only resident who has been receiving huge bills which the city’s revenue department does not seem to be able to resolve.

Keith Wentzel has been battling for over a year to get his R544 400 bill sorted out.

He spends an hour on the phone every month trying to get a statement so he can pay an average of about R1 900 monthly for services. He has repeatedly been told that the amount is an estimate, that he should just pay it and the matter will be sorted out later.

Wentzel tried to take his own readings, only to discover that the meter was not working. City Power then installed a new meter, but his account has not been rectified.

He still gets bills of around R544 400 a month.

“Almost a year on, and I cannot get this resolved,” he said.

Pensioners Sandra and Franz Gamma live in Kloofendal, and have been getting bills of around R680 400 for electricity. They too have been battling for more than a year to get it sorted out.

“They keep on phoning us and telling us they are trying to sort it out, but nothing happens,” she said.

Their problem began in October last year when meter readers started billing them on readings taken from their neighbours.

“Over the years we have always had the meter read correctly. The meter number has now been captured incorrectly and we don’t know what went wrong,” said Sandra Gamma.

The Gammas have not been threatened with disconnection and have not been charged interest. They pay on average R3 000 a month to keep the account up to date.

“But the customer care centre staff just shrug their shoulders and say that perhaps the matter will be resolved in six months or more,” she said.

Despite numerous requests for comment, the city’s revenue and billing department has not responded.

Well done ANC

 

[2old4this]

Eishskum, city councils & Anc will slowly revert this country back to windmill boreholes, wells & laterns. I can see it happening!

 

[The_Unbeliever]

Yikes!



I would gather all the necessary evidence, then lay a charge of fraud against the municipality for trying to defraud me.

 

[Albereth]

There are some seriously bad journalistsa out there. This guy didn't lose his business because of a R12M bill - it had already tanked. He couldn't foot a R9000 bill and he got cut off.

Aside - I've spoken to lots of folk from the CoJ and the most defensive ones are from the IT department. Very touchy about the system not working and the irony is that they probably had the least to do with the fiasco.

 

[Arthur]

Shocking. Outrageous.

This problem would have been resolved in days if electricity was provided by private business not government.

 

[Devill]

There are some seriously bad journalistsa out there. This guy didn't lose his business because of a R12M bill - it had already tanked. He couldn't foot a R9000 bill and he got cut off.
Aside - I've spoken to lots of folk from the CoJ and the most defensive ones are from the IT department. Very touchy about the system not working and the irony is that they probably had the least to do with the fiasco.

:erm: No. Some people simply make a living off a business. Lets say he could afford to pay himself R6000 / month, where would he get R9000 from?!

I am sorry but that was a silly comment.

 

[Mars]

There are some seriously bad journalistsa out there. This guy didn't lose his business because of a R12M bill - it had already tanked. He couldn't foot a R9000 bill and he got cut off.

Aside - I've spoken to lots of folk from the CoJ and the most defensive ones are from the IT department. Very touchy about the system not working and the irony is that they probably had the least to do with the fiasco.

 

[DefecteD]

T I A

 

[Hard Rain]

Government in action.

 

[Albereth]

:erm: No. Some people simply make a living off a business. Lets say he could afford to pay himself R6000 / month, where would he get R9000 from?!

I am sorry but that was a silly comment.

How is it a silly comment? Read the article. It starts with:

"A R12 million electricity bill has resulted in a Roodepoort man losing his business after two years of unsuccessfully battling the Joburg billing chaos",

which is bull. He lost his business when he couldn't pay the R9000 bill be got two years prior. It was downhill from there, no night games, no cold cool drinks.

The R12M has nothing to do with the power being cut off. It could have been R12 or it could have been R120M - the business was sunk with the R9000 bill. Two years later the R12M bill arrives for meters that are on his account that he doesn't know about. By that time his business was already dead.

 

[Devill]

How is it a silly comment? Read the article. It starts with:

"A R12 million electricity bill has resulted in a Roodepoort man losing his business after two years of unsuccessfully battling the Joburg billing chaos",

which is bull. He lost his business when he couldn't pay the R9000 bill be got two years prior. It was downhill from there, no night games, no cold cool drinks.

The R12M has nothing to do with the power being cut off. It could have been R12 or it could have been R120M - the business was sunk with the R9000 bill. Two years later the R12M bill arrives for meters that are on his account that he doesn't know about. By that time his business was already dead.

:erm: No. Him not being able to sell tuck, as well as not being able to be open at night, which I am sure is when he would get his most business in the week due to people having jobs and other things in general to do, would lead to the business going from a low profit business to bankrupt.

Or do you see many put-put gazillionairs around?

If he was making just enough to pay himself a small salary R9000 and not being able to get the line "back up" could surely lead to the business' downfall.

Let us say he was making a profit of R10 000 a month paying the tuck shop assistant R1000/month.
Now he is paying himself R9000 a month.

Please explain how getting a bill that is eqaul to almost the monthly profit of the business, is not going to attribute to it closing down?

 

[DJ...]

How is it a silly comment? Read the article. It starts with:

"A R12 million electricity bill has resulted in a Roodepoort man losing his business after two years of unsuccessfully battling the Joburg billing chaos",

which is bull. He lost his business when he couldn't pay the R9000 bill be got two years prior. It was downhill from there, no night games, no cold cool drinks.

The R12M has nothing to do with the power being cut off. It could have been R12 or it could have been R120M - the business was sunk with the R9000 bill. Two years later the R12M bill arrives for meters that are on his account that he doesn't know about. By that time his business was already dead.

The initial R9k invoice was also incorrect. Yes, his cash flow was a complete cock up, but I'm assuming, much the same as Devill, that he drew a salary from this business which he lived off. While he might not be the best businessman out there, especially regarding cash flow management, the electricity billing fiasco most certainly led to the downfall of his company, exacerbatedby his poor cash flow management skills. His poor cash flow management is of absolutely no concern to a court when it comes to this - this was CoJ's ineptitude that caused the failing of his business...

 

[Ronjay]

:erm: No. Him not being able to sell tuck, as well as not being able to be open at night, which I am sure is when he would get his most business in the week due to people having jobs and other things in general to do, would lead to the business going from a low profit business to bankrupt.

Or do you see many put-put gazillionairs around?

If he was making just enough to pay himself a small salary R9000 and not being able to get the line "back up" could surely lead to the business' downfall.

Let us say he was making a profit of R10 000 a month paying the tuck shop assistant R1000/month.
Now he is paying himself R9000 a month.

Please explain how getting a bill that is eqaul to almost the monthly profit of the business, not going to attribute to it closing down?

Agreed. But you and Albie are saying the same thing. Read it again. Albie is saying that his business failed because he couldn't pay the 9000 not because of the 12 mill that's all. The way he put it at first was :erm:. But of course the business was probably fine, the R9000 bill was obviously the catalyst to the downfall not the 12 mill like the journo wants people to believe.

 

[The_Unbeliever]

The initial R9k invoice was also incorrect. Yes, his cash flow was a complete cock up, but I'm assuming, much the same as Devill, that he drew a salary from this business which he lived off. While he might not be the best businessman out there, especially regarding cash flow management, the electricity billing fiasco most certainly led to the downfall of his company, exacerbatedby his poor cash flow management skills. His poor cash flow management is of absolutely no concern to a court when it comes to this - this was CoJ's ineptitude that caused the failing of his business...

That. Nothing more, nothing less.

 

[Sherbang]

I hope he recovers his lost income through the courts.

 

[DJ...]

I hope he recovers his lost income through the courts.

Unfortunately that comes out of our (taxpayers) pockets. Which is why holding politicians to account is all the more important...

 

[volstruis]

How can he ran up a R12mill bill if he was cut off in 2009 for not paying R9000?

 

[AstroTurf]

Friend of mine rented a wooden house halfway up a mountain.

He moved out (after cancelling and moving his Electricity account to his new house) and 2 days later the house in the mountain including the meter burned down due to a veldt fire.

3 months after that they were billing him for electricity usage on the burned to the ground house, each month a bit more ridiculous pricing.

He ended up having to get a lawyer to convince eksdom that they are billing him for a non existent connection.

 

[Devill]

Agreed. But you and Albie are saying the same thing. Read it again. Albie is saying that his business failed because he couldn't pay the 9000 not because of the 12 mill that's all. The way he put it at first was :erm:. But of course the business was probably fine, the R9000 bill was obviously the catalyst to the downfall not the 12 mill like the journo wants people to believe.

There are some seriously bad journalistsa out there. This guy didn't lose his business because of a R12M bill - it had already tanked. He couldn't foot a R9000 bill and he got cut off.

No we are not

Read the bold part. If the system worked all could have continued as it had. But the R9000 prob wiped his cash flow like DJ said... Albereth is saying something different.

 

[Sherbang]

No we are not

Read the bold part. If the system worked all could have continued as it had. But the R9000 prob wiped his cash flow like DJ said... Albereth is saying something different.

Wow Devill, you're really struggling with this aren't you

When Albereth said it had already tanked he meant it had tanked before the R12M bill, but after the R9000 which got him cut off.
You both agree that it was getting cut off after the R9000 bill which caused his business to fail!