The Overstrand Municipality would like to inform residents that the Auxiliary (AUX) charges on electricity purchases will be reintroduced with effect from 1 December 2025.

The Auxiliary is a long-standing debt collection mechanism used by the Municipality to help recover arrear amounts on municipal accounts. When a prepaid electricity customer’s account is in arrears, 60% of the amount paid when buying electricity is automatically allocated to their arrears account, and only 40% goes towards the purchase of electricity units.

This means customers will receive fewer units than expected until their arrears are settled.

Residents whose accounts are up to date or who have payment arrangements in place and are honouring them will not be affected by the reinstatement of the Auxiliary.

Notice to customers in arrears

Consumers with arrear balances on their municipal accounts are urged to use the month of November 2025 to contact the Municipality and make payment arrangements if they qualify to do so.

November is often a convenient time, as many consumers may receive bonuses. Making acceptable payment arrangements and/or settling your account in full during November will ensure that services are not restricted when the Auxiliary system is reinstated from 1 December 2025.

All write-offs for debt older than 90 days have already been processed, meaning current balances now reflect the outstanding amounts levied and accumulated from July 2025.

Residents who still owe money, or whose statements show an account in arrears, are encouraged to visit their nearest municipal office to arrange an affordable repayment plan before 1 December 2025.

Otherwise, the Auxiliary system will be applied, and affected customers will not receive the full number of electricity units purchased or will have restricted (“drip”) water supply until the arrears are settled.