20 February 2006

By Gabi Khumalo

Ethekwini municipality has managed to save about R250 000 in postage costs since the consolidation of accounts last year, according to a report on the municipality's website. Under the new accounts system, ratepayers now receive their electricity, water, and rates bills on one statement. Residents' bills used to be posted separately, with rates being paid annually.

Because the accounts were not posted on the same date, some residents forgot to pay one account after having paid the other. Philile Madonsela, the deputy head of arrears at the municipality, said the new system had brought with it a tremendous increase in cash flow.

She said about 160 000 accounts had been consolidated with another 140 000 households being identified to be part of the process.

Rented properties would, however, not be included as tenants were responsible for electricity bills.

"We have converted all ratepayers from annual to monthly and the consolidation of accounts continues," said Madonsela. "We wanted to cut down the cost of the municipality's administration. The new system is going smoothly and we're continuing to identify people whose accounts need to be consolidated."

 

Source: Ethekwini Online