The City of Johannesburg (COJ) has paused its programme to swap existing electricity meters with smart meters following customer complaints over “discrepancies in some accounts” and other issues.
City Power announced the pause more than a week after the suspension began, saying it will remain in effect until November “to allow for a thorough review of the conversion process and ensure future conversions are handled accurately and fairly”.
According to the COJ’s website, the utility is converting all electricity meters to prepaid, enabling customers to manage their own consumption. National Treasury this week said smart meters nationwide improve billing accuracy.
“Prepaid electricity metering is the face of the future, which is why City Power has embraced an infrastructure upgrading programme to convert all of its customers to prepaid metering,” the website states.
Consumers must book an appointment for the meter rollout, after which a verifiable contractor will fit the meter. The notice warns that customers who do not respond within three days risk having their supply terminated.
Massive project
The programme targets all customers, including businesses and residential patrons, with priority given to households facing meter access issues, faulty meters, or illegal connections, according to a city notice dated May 2011.
COJ loses more than R2 billion each year in what it calls “nontechnical losses”. This includes illegal connections in suburbs and informal settlements.
City Power notes several benefits of prepaid meters, notably improved control over electricity consumption and avoidance of estimated billing. The conversion programme is currently free.
However, the utility says the programme has been paused to resolve concerns that “must be addressed before further conversions can proceed”.
These include “discrepancies in some accounts not being accurately reflected on City Power’s systems after conversion, and the impact of prepaid tariff structures, which until July 2024 excluded fixed service and network charges”.
After City Power introduced fixed service and network charges, prepaid customers started paying the same fixed fees as postpaid users, which has led to confusion over higher bills.
Another issue was postpaid meters that had been converted to prepaid but were no longer showing activity of electricity being purchased, which could be an indicator of an illegal connection.
The suspension will allow City Power to “strengthen systems, tighten controls, and ensure that future conversions are handled accurately and in line with proper revenue protection standards,” it says.
A dedicated task team has been appointed to investigate the financial and operational impacts of all electricity meter conversions.
Prepaid electricity metering, introduced in 2010 to improve access and convenience for households and businesses, has become a core part of the city’s electricity services.
In areas such as Alexandra, near Sandton, City Power continues to fit prepaid meters without charge to tackle longstanding issues with non-payment, particularly in lower-income communities.
Meanwhile, National Treasury aims to install 250 000 smart meters across the country to help reduce municipal debt to Eskom.
The national project, mostly targeting underprivileged areas, is expected to cost it almost R7 500 per meter and seeks to modernise municipal electricity management, address infrastructure challenges, improve energy efficiency, improve billing accuracy, as well as help municipalities pay down the debt they owe Eskom.
City Power says electricity supply remains unaffected, and customers should continue using their existing meters as normal.
Isaac Mangena, City Power spokesman, did not return a call seeking comment.
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