What is debt recovery and why does it affect my prepaid electricity purchases?
Have you ever received less units than you usually receive? Or at times, not received a token at all. This could be due to municipal debt recovery policy. The City Manager, reserves the right to deduct a certain percentage of the monetary value towards settling any arrears.
So what is debt recovery?
Some utilities/municipalities use a portion of the money a consumer pays for electricity to settle any debt/arrears the consumer may have on any other municipal account (water, rates, sewerage etc). Debt/arrears are clearly indicated on the receipt. This has to be done with prior notice to the debtor and will remain unchanged until settled or by default.
Electricity is not the only means of recovery, these deductions can be offset against any of these; any fines, any other arrears or penalties.
Debt is directly managed by the utility/municipality therefore any debt related query must be addressed to them directly.
The link below explains in depth how this works. (Please note this is for the City of Cape Town)