2008-12-12: City takes steps to rectify billing errors
A NUMBER of customers have received electricity billing statements reflecting the VAT incorrectly in the November statements. This problem is now being corrected.
The errors crept in after the introduction of a new tariff structure for electricity in July 2008. These errors were picked up through quality assurance checks conducted by the City. About 10% of the city's customers were affected by this error.
The electricity adjustments were indicated on the municipal accounts sent to customers in November. These adjusted amounts were uploaded as a single credit without the split between the adjusted amounts and the VAT.
Because of a technical glitch the adjusted amount did not clearly indicate the 14% VAT portion levied. Clients spotted this error and raised legitimate concerns about the validity of their accounts and whether they were being overcharged.
The Revenue & Customer Relations Department took immediate steps to rectify this error. Affected customers will now receive a letter of apology from the City as well a simulation of the calculations for the electricity component to show what was charged, what should have been charged and the adjustment that resulted from the error.
The City of Johannesburg apologises to all its customers who have been adversely affected by these errors. We are taking the necessary steps to rectify the error, to inform customers about the error and to ensure that it is not repeated.