Ricochet News

Debts increasing by an Average of R45.2 Million a Month

OCTOBER 28, 2014
Debts increasing by an Average of R45.2 Million a Month

Overdue consumer debts in Nelson Mandela Bay increased by an average of R45.2 million a month between July and September this year.

A report to be submitted to the Budget and Treasury Committee shows that consumer debt increased by R135.6 million or 6.9% over the three-month period to stand at R2.108 billion.

The figures show that of the total outstanding debt nearly R1.2 billion has been outstanding for more than a year, while R357.6 million has been owed for between 181 days and one year.

The major contributors to the increase of R135.6 million over the three months to September were organs of state, whose overdue debts increased by nearly R72 million from a little above R41 million at the end of June to R112.9 million on September 30.

Households remain the group with the largest outstanding debt, and with the R7.5 million added in the three months to September the total now stands at R1.213 billion.

Commercial customers owed a total of R770.35 million at the end of September, the amount having increased by R52.6 million since the end of June.

The CFO points out in his report that the increase in the amount outstanding is mainly due to the fact that 14 large electricity consumers have only been paying 76.5% of their consumption since July 1 last year.

The companies are disputing the electricity tariffs approved by Council, he states, adding the combined debt of the 14 companies at the end of September was R143.8 million.

Harper points out that the companies are only paying 76.5% of their electricity accounts on the advice of their attorneys.

The figures with the report show that of the total amount outstanding R454.4 million was in respect of electricity at the end of September and R340.2 million for water.

In addition, overdue amounts for property rates totalled R396.5 million was which was an increase of R95.1 million on the position at the end of June. - MetroMinutes.


Picture courtesy of www.iafrica.com