eThekwini Water and Sanitation: Customer Services Project – Providing Debt Relief for the Poor

The eThekwini Water and Sanitation: Customer Services Project sought to reduce municipal debt through the collection of outstanding monies from    25 000 community members in the worst performing municipal wards with a combined debt of over R20 million.  20 Community Service Agents (CSAs) were trained to work in the 20 wards in order to create a grass roots movement towards conservation and create a culture of prompt payment, by assisting the municipality in their interventions.  These include education on debt relief programmes, and the provision of a multitude of solutions reducing water consumption, through the identification of leaks and encouraging residents to restrict water consumption under the free water limits of 200 kilolitres per day.  Additionally, outstanding balance of R20 million facing the residents was frozen. Assistance, in this regard, was received from the Water Research Council and the National Department of Water Affairs, with the Development Bank of South Africa playing a major role in funding the operation.  

Customers experiencing R500 or more in arrears were targeted, usually Child-Headed Households, pensioners, and Indigents.  These people were provided with educational leaflets, 5 social workers, a recent water billing history and a report form for water problems experienced.  The major customer focused effort in reducing debt, and recovering outstanding payments, was the freezing of debt of the poorest customers in order to prevent further debt accumulation.  In order to fulfill the contractual obligations that participating members are bound, those members became responsible for reporting leaks, illegal connections, and repairing small leaks on their property; visiting a Customer Service Office to reach an agreement on their arrears; and exercising their rights regarding level and quantity of service required from the municipality.

Innovation

One of the reasons why the programme is so effective is because of the support services offered by the municipality.  Customers are fully educated about the contractual agreement, how to reduce water accounts by checking for leaks, reading their water meters, and using water wisely, in addition to having a toll-free hotline available.  20 Customer Service Agents and 5 education officers are trained and employed to educate and support households that are on the programme, and influence others to join who are not.  The programme also has access to a social worker that visits homes that have difficulty adhering, particularly child and pensioner-headed households.

Effectiveness

To date, 22 000 customers are participating in the programme, R7,88 million in debt has been written off, R9,42 million in income has been received from paid current water accounts, 12 000 (55%) of the customers participating in the programme are paying on a regular basis, and water consumption has been reduced from an average of .63kl per day to .55kl resulting in a monthly savings of 52 800kl at R270 000.

Poverty Impact

By freezing the debt of poor customers, and requiring interest free repayments, further debt accumulation is suspended. The education provided by the social worker to these customers also helps to reduce spending on water. The provision of water harvesting tanks further helps to supplement the free water supply of many households who use more than the 200 free litres per day.

Sustainability

This project is funded and administered by the eThekwini Municipality.  All management report to a senior government official, while checks and balances are monitored by an internal audit system. The retrieval of debts will ensure that the project is self-sustaining.

Replication

The basic policies and methods used in carrying out the objectives of this project are sound.  This project can be replicated for other services such as electricity.

Partnerships:

• Department of Water Affairs
• Water Research Council
• Development Bank of South Africa