Africa-Press – South-Africa. Increasing numbers of Johannesburg Water’s customers are defaulting on their payments.
The company, which provides water and sanitation to the city’s six million residents, says this has negatively affected its service delivery.
Johannesburg Water buys bulk water from Rand Water, which cleans water from the Integrated Vaal River System.
Both entities have had issues recently with supply to customers in the “city of gold”. Some areas have not had water for days.
The issues stem from electrical outages, preventing water from being pumped into reservoirs, and broken infrastructure.
Last week, Johannesburg Water attended the industry stakeholder forum meeting with The National Business Initiative, where it outlined its financial situation.
Although the entity profited by 30 June, its finances could have been better.
Spokesperson Nombuso Shabalala said: “It impacted service delivery negatively because for Johannesburg Water to function effectively, the entity needs to be in good financial health. If customers do not pay for services rendered, we can’t provide them optimally.”
She added that the increment in non-payment was of concern to the entity.
“It has a direct negative impact on the availability of funds for service delivery and capital expenditure. The high levels of bad debts impact negatively on the profitability, cash flow and sustainability of Johannesburg Water.”
Besides non-payment, the entity is concerned about theft and vandalism of the infrastructure.
Shabalala said high urban migration to the city increased water demand and added that land occupation encroached on Johannesburg Water servitudes.
“Furthermore, municipalities raise their income from rates, water and electricity. The resources that come through water services do not only go back to water. The City of Johannesburg uses this money for other functions of the City too. So, Johannesburg Water cannot utilise its revenue solely for the entity’s business because our revenue has to contribute to the consolidated balance sheet of the City.”
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