Recovery plan following electricity sales bungle

The Nelson Mandela Bay Municipality has issued a recovery plan after it lost almost R3 million due to an electricity sales bungle.

According to the municipality, on 01 July 2017 from 00H00 to 02 July 2017 14H30, pre-payment electricity was sold to 38230 customers at an incorrect lower electricity tariff. This resulted in a loss of R2 735 259.04 million to NMBM.

Bay residents have been receiving personalised sms messages to inform them of the recovery deduction.

According to the municipality electricity was sold as follows: 0 – 75 kWh at R0.9641 per kWh 76 – 350 kWh at R1.0585 per kWh 351 – 600 kWh at R1.7585 per kWh 601 – 950 kWh at R1.9833 per kWh 951 + kWh at R1.9833 per kWh

Instead of the following: 0 – 350 kWh at R1.4854 per kWh 351 – 600 kWh at R1.7927 per kWh 601 – 950 kWh at R1.9833 per kWh 951 + kWh at R2.0598 per kWh.

According to the recovery plan, purchase patterns have revealed that the affected customer purchase their bulk monthly electricity in the beginning of each month, which makes these dates the best time to recover the loss to Council.

Customers affected for the amount less than R100.00

The following personalised sms messages were send out on 31 August 2017 to customers who have to repay less than R100.00 in order to inform them of the recovery deduction in  September 2017:

“NMBM - Due to a technical error electricity was sold to you on 01/02 July 2017 at a lower tariff for meter no …………….. The total amount to be recovered is R …….. This amount will be recovered in Sept 2017. Tel 087 742 0459 for more info. Apologies for the inconvenience.”

The token message after purchase is as follows: Due to a technical error pre-payment electricity was sold to you on 01/02 July 2017 at a lower electricity tariff than the tariff approved by NMBM Council for 2017/18. The total amount to be recovered is R…………... See receipt for amount recovered. For enquiries, Phone Tel 087 742 0459 (24 Hour Call Centre) for information. Apologies are extended for the inconvenience caused.

Customers affected for the amount above R100.00 or more Personalised sms messages were send out on 31 August 2017 to customers who have to repay R100.00 or more, in order to inform them of the recovery deductions that will be done in September and October 2017, as their recovery is split over 2 months: “NMBM - Due to a technical error electricity was sold to you on 01/02 July 2017 at a lower tariff for meter no …………….. The total amount to be recovered is R……… This amount will be apportioned and recovered in Sept and Oct 2017. Tel 087 742 0459 for more info. Apologies for the inconvenience.”

The token message after purchase is as follows: Due to a technical error pre-payment electricity was sold to you on 01/02 July 2017 at a lower electricity tariff than the tariff approved by NMBM Council for 2017/18. The total amount to be recovered is R………….. This amount will be apportioned and recovered in September and October 2017. See receipt for amount recovered. For enquiries, Phone Tel 087 742 0459 (24 Hour Call Centre) for information. Apologies are extended for the inconvenience caused.

According to the municipality, only the affected customers have been informed of this recovery plan and are referred to the WireIT 24/7 Call centre on 087 742 0459 for clarity and explanation, if required.

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