Silence (or garbage) is the loud reply from City Power
Over the past two days we at Moneyweb have been inundated with queries from readers, who have related absolutely bizarre VAT overcharges on their electricity bills from City Power.
And it seems that it's not only us who have been unable to make contact with them. Here are a few responses received from our readers:
"For the past few months I have seen the JHB Municipality add VAT on the electricity section of the account as they please, and hoped my e-mail to them to make the adjustments would be sufficient, wanting to put off the inevitable queuing and head butting face to face. But I have not had the courtesy of an acknowledgement, much less addressing the issue. Now the November account has arrived and two issues on the electricity section mean I will have to make the dreaded journey. First the electricity adjustment of some R1 500 (this despite the last 4 accounts noting that the electricity had been calculated on ACTUAL readings) and to top it, the VAT on R2 229.10 (which includes the R1 511.14 adjustment) of R595.24, roughly 26.75%."
"I have read your article on VAT with interest. I also tried to contact Joburg Connect call centre several times and eventually gave up. We received our account from City of Johannesburg for November and have a similar situation on the account. The VAT charged on water and sanitation charges is correct.
"Our account for electricity: electricity levies R406.56, adjustment electricity R234.56 (-), service charge R147.12, VAT 14% R311.99, total R865.67, less R234.56 = R631.21. The VAT amount that should have been charged is R77.52. It seems as if the "adjustment electricity amount" is the refund on the VAT amount. Once again, City Power is misleading the public!"
This one was sent to David O'Sullivan from Talk Radio 702, and copied to us:
"Hi David, not sure if this has been passed along to you but it is FRIGHTENING that a company such as City Power can abuse a system like this in such a flagrant manner. If you read through some of the comments on the [MoneywebTax] article, you will notice that the author isn't the only one who is having this issue. The problem is further exacerbated by the fact that it is almost impossible for anybody to get hold of City Power to enquire / complain about the situation. In the past we have had tirades against state institutions such as Home Affairs because of disgusting levels of service delivery, that has had an effect (I will honestly say that I have had very good experiences lately with Home Affairs). You guys have the numbers of the big wigs. Please give them a call and ask them to justify these charges (which they can't), and if they don't want to, maybe you should contact a legal eagle to lay a class action suit against these people."
Even more bizarre are some of the responses that the fortunate few who have actually managed to crack the impenetrable barrier that is Joburg Connect have received from whoever was brave enough to answer the ‘phones. Here are a few:
"A couple of months ago a new charge 'Demand side management levy' was sneaked onto our statements. It was not shown as a separate line item under the City Power section, but this 'ghost' amount was taken into account for the VAT calculation and included more in the total amount. According to the call centre agent I spoke to, this levy helps to pay for traffic lights in our area, etc. - go figure? The November statement finally shows this as a separate line item."
"When I finally managed to get through to City Power, the hapless call centre agent had entirely different figures from those reflected on my account, and told me that I was not to worry as that money was not actually going to VAT, but to back dated tariff - more increases. The amount I owe them stays the same, and that the payment specified for VAT is not actually for VAT! The amounts for electricity adjustment and for VAT are both seemingly random amounts which they cannot explain how they were arrived at. But I should just pay the total owing as it is apparently correct. They tell me they are getting many calls about this over-charging of VAT, so clearly this was the way they have collected their back dated tariff increases. Typical JHB dishonesty - they obviously hoped to get back-dated tariff increases through without us noticing!"
This problem is clearly widespread, and City Power is hiding in its bunkers and refusing to talk to us. Please e-mail your bills to steven@moneywebtax.co.za, or fax them to (086) 6374416, as we want to have sufficient evidence available when we eventually manage to get hold of someone in authority at City Power. The South African Revenue Service (Sars) will also need concrete evidence to assist them in their investigation of the VAT issue.
We are also considering offering a small prize to the person whose VAT overcharge exceeds the statutory rate by the highest percentage!
Comments
What City Power is doing is illegal. Lay a charge of fraud against the head honcho and then you will see things happen. Get off your lazy asses and stop complaining.
by ps on December 05 2008, 12:02
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What else can one say except sympathys to one and all under the yoke of this foul orgagnisation and those that have to use their excuse for the word services
by RUS on December 05 2008, 12:14
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This is going to end very badly for City Power.........Any way you look at it, this is fraud. The one branch of govenment that is (half) competant is going to rip this utility apart.
by MotoMike on December 05 2008, 12:26
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Tried the call centre last night at 8pm - experiencing extremely high call volumes - line was cut.
Tried this morning at 6am and again at 6.30am - still experiencing high call volumes. Line was cut in both cases.
by Grant on December 05 2008, 12:46
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They will cal you a bunch of right wing racist nazi's who are still stuck in the past. Then they will increase the tarrifs.
by Into the looking glass on December 05 2008, 12:54
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Tshwane sound like Schweine in German - not off the mark. Schweine Council.
Just as many complaints in the past. Recent one. Account comes - pay 5 days too late (at work, cannot get off). I pay. Next months comes a final warning letter - otherwise . .more
by Creative accounting on December 05 2008, 14:00
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These are the directors of City Power, according to their website:
City Power Board of Directors
Ms Getty Simelane (Chairperson)
Mr Silas Zimu (Managing Director)
Ms Joyce Kumbirai
Prof. Tshilidzi Marwala
Mr Klaus Garlipp
Mr . .more
by John Smith on December 05 2008, 15:07
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All AA, every one of them.
First Eskom, now this
by Racist on December 28 2008, 20:06
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I re-calculated the correct VAT and short-paid my account by an odd R350 in December 2008. 5 Months later on Wednesday Morning 20 May 2009 they cut off my electricity due to an alleged overdue amount of over R1300. Needless to say I went straight to my . .more
by Tarzantietties on May 24 2009, 19:00
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City Power is incompetent. Have laid a charge of fraud, but not even that has helped. Overcharging is rampant. IS THERE ANYONE OUT THERE WHO CAN HELP?
by Disgruntled on September 23 2009, 12:05
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