The eThekwini Municipality has taken a step to be one of the first local governments to solve the ongoing billing problems many South African municipalities are facing.
These crises have resulted in an inundation of customer complaints and in the past year, there were several reports of municipalities billing people incorrectly.
According to the deputy head of arrears, Philile Madonsela, the eThekwini Municipality appointed Striata, a provider of payment solutions, to consolidate the municipality's billing system.
“This has resulted in a big increase in revenue collections. The new bills consolidate electricity, water, and rates bills into one statement. Previously, utility bills were posted monthly and the rates bills annually,” he says.
This means customers are now able to budget properly because all charges are in one statement, says Madonsela, adding that the municipality has cut its administration costs as fewer bills are posted, enabling more services to be provided.
The consolidation process has been going on for more than two years and 60% of accounts have been consolidated so far, he notes.
The municipality says it has also introduced an easier way for customers to receive and pay their monthly utility bills. The e-billing system lets customers view their bill through the Internet or e-mail, as well as pay 'with ease'.
Explaining how the system works, the local government says all customers need to do is register and the bill will be e-mailed to them. Furthermore, a link to the EasyPay payment system gives customers a convenient payment option, adds eThekwini.
The treasury deputy manager, Krish Kumar, says the idea was to use technology to make life easier and more cost effective for the municipality and its customers”. The system allows for timeous billing. Property owners can also register with their tenants so both will receive the bill, he says.
According to Striata, the billing process has always been a strategic marketing and customer retention platform.
“However, without the means to measure effectiveness by customer profile or demographic usage, billers have historically focused more on getting paid and getting paid faster,” it says.
A year after introducing its e-billing offering, the municipality says it has increased efficiency and it has a bill delivery rate of 99%.
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