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A R112 Million “Success” Built on Overcharged Tenants

Today’s adjustment budget in council raised serious concerns related to electricity revenue, where the City reports an over-recovery of R112.8 million.

The post A R112 M “SUCCESS” BUILT ON OVERCHARGED TENANTS: GOOD REJECTS ENERGY DIRECTORATE’S BUDGET CLAIMS appeared first on For Good.

GOOD Speech by Roscoe Palm, GOOD City of Cape Town Councillor:

Today’s adjustment budget in council raised serious concerns related to electricity revenue, where the City reports an over-recovery of R112.8 million.

Xanthea Limberg’s Energy Directorate has a duty to ensure that budget projections, tariffs, and billing systems are aligned so that residents are not used as a buffer for forecasting errors. The result of this misalignment is that households, including low-income tenants in social housing, have effectively provided the City with an interest-free loan through overcharges. Residents will not see a return for this princely sum that was extracted from them.

The City does NOT ensure that social housing tenants are protected. It has allowed social housing tenants to fall victim to third-party service providers. Just look at DCI in Goodwood, which is run like the private kingdom of former ANC provincial Treasurer Fezile Calana. For tenants like these, overcharged for basic services by third-party companies, the City exercises no oversight and instead provides cover for private companies to collect their pound of flesh from working families.

Mayor Geordin Hill-Lewis cannot have it both ways. If he is happy to appear on promotional videos for DCI, then he cannot disappear when such exploitative practices are taking place. Xanthea Limberg cannot kick this can into touch as she does in every energy portfolio committee meeting.

If the City can acknowledge an electricity over-recovery exceeding R100 million, it must also explain how and when residents will be compensated after it unlawfully overcharged them. The City must pay back the money to social housing tenants.

 

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