BAD DEBTS.

Press, Volume LIX, Issue 17811, 10 July 1923, Page 4

BAD DEBTS.

ELECTRICITY SUPPLY PROBLEM. The problem of the collection or bad debts due by defaulting consumers is causing the Electricity Committee of the City Council some concern. The following report from the General Manager was received by the Council last night;— , The authority of the Committee is requested to write off bad debts as per attached list, to the amount of £175 12s 9d. Our procedure in connexion with these matters is as follows: (a) If the account is not paid until after the discount date, a new account is sent by post, covering tlie gross amount. ! (b) A second notice, pointing out that the account is' unpaid, and reminding the consumer t».at. non-pay-ment renders him liable to be cut oir. (o) A final notice, intimating that if the account is not paid within seven days, it will be necessary to disconnect the supply and take proceedings for the recovery of the amount. ■■«( d) In addition to tliese measures, a collector is continually employed, and Keeps closely in touch with every debtor until finality is reached. The bulk of the cases are where debtors have gone and left no address. In many cases the sum is small, and further' efforts to secure payment would cost more than the amount involved. The amount proposed to be written off represents 'da per £IOO of the revenue handled. It is, of course, understood that any subsequent opportunity of collecting these debts shall be fully used, as, for instance, if a debtor reappears and makes a fresh application for supply, but with amounts so small, and the above steps having alroady been taken, a periodic writing oft is most desirable to clear the ledgers. The electricity Committee reported that the statement from the General Manager was discussed at some length. The Committee had decided that an effort should be made to reduce the amount in future, and he instructed the General Manager to report upon suitable steps to be taken, either byway of insisting upon a deposit before I supply was given, or by some other i means. I The Deputy-Mayor said that people were in the habit of leaving their houses without paying their lighting charges. It might be necessary for the Committee to insist on a deposit, or on payment in advance.