1. Rand Water services Forum – Billing and Administration 14 September 2016 2016
Presented by:
Michael Ngobeni
(debtors manager)
SEPTEMBER 14,2016

2. Rand Water Payment terms and Interest charges
AGENDA ITEMS
Rand Water Payment terms and Interest charges
Supply Reconnection/disconnections
Customers risk

3. Payment terms and interest
As per RW Credit Management Policy, payment is expected within 30 days of invoice issue
Rand Water can be engaged regarding payments arrangements
Interest is calculated from default date – as per the contract
The longer you take to pay after due date, the higher the interest to be charged

4. Water Supply Reconnection/disconnections –
WSA No 108 0f 1997 section 3 and section4(3)
PFMA Section 51(b)(i) of the Act stipulates that the accounting authority “must take effective and appropriate steps to collect all revenues due”
Sect 41 of the MFMA creates an enabling environment for the monitoring of the Water Boards debt position.
Sect 65 (2) (e) of the MFMA requires municipalities to settle amounts owing within 30 days of receipt of the invoice
Where customers cannot make payments:
Payment arrangement should be concluded and signed immediately, If not:
Within 45 days, after notification- automatically suspend supply (Retail customers)
Limit supply to 6kl as per the WSA (Households)
Follow the Water pressure reduction process as per section 4(5) of the WSA
(Municipalities)
Interest will be charged from default date
Reconnection fee will be charged to cover the expenditure incurred due to service interruption.
Customers are advised not to engage District Superintends re payment arrangements, please refer consumer queries to Debtors/Revenue Accounting Department at Rietvlei ( )

5. Customers risk re-evaluation
Quarterly depending on the risk exposure or if the following internal/external factors occur:
Consumption patterns changes
Payment performance
Requests for extended payment terms
Violations of normal or extended payment terms
Re-evaluation could result in:
Recovery of Debt
Termination of trading
Change of risk rating
Change of payment terms
Require additional security/deposit

6. DEBT OWED TO WB THREAT TO FINANCIAL SUSTAINABILTY
Municipal debt levels remain a serious concern for some of Water Boards, where the levels of debt are substantial high.
The viability and sustainability of the water Boards is being threatened as the overall debt levels are increasing
This critical issue needs to be fully addressed on an on-going basis by all stakeholders

7. THANK YOU!