Thousands of poor households in the eThekwini Municipality stand to benefit from the council's proposal to write off the water debts of domestic customers struggling to pay for municipal services.
However, only those customers who demonstrated a willingness to start paying for their current water accounts would reap the rewards.
The proposal to reduce the debt of impoverished domestic consumers was tabled before the executive committee on Tuesday amid growing concerns that the municipality was struggling to tackle its water debt.
At a recent council meeting, the African National Congress-dominated council came under fire from opposition parties for its failure to arrest the huge water debt.
By encouraging customers to begin paying their current accounts in return for a reduction in their accumulated debt, the municipality was hoping to restore a culture of good water management and payment for water services.
According to the proposal, people who wanted to benefit would have to sign an agreement with the council.
"For every month that the customer pays the current water account in full, and by the due date, the amount outstanding for water on the date that the contract was signed will be reduced by one fiftieth, and no further interest will be added to the amount outstanding," the proposal stated.
According to the tabled report, the total debt of domestic customers who were in arrears for more than 90 days amounted to R280-million.
For the municipality to reduce the water debt owed, consumers were urged to pay for their accounts on a monthly basis for more than four years, said the new proposal.
The proposal added that the plan was targeted at helping the poorer section of society only.
Potential beneficiaries of the proposal faced an interview at which their financial and other circumstances would be examined.
The council's decision to allow domestic consumers to start on a clean slate was well received by opposition parties and civil society organisations campaigning against higher water tariffs.
"The plan places those customers in default in a position to address the problem of the water debt facing them," said the report.
Inkatha Freedom Party councillor Johannes Mile said his party supported the proposal.
"The community is going to benefit a great deal if this process is implemented and the council will also save a lot of money," he said.
Democratic Alliance caucus leader Lyn Ploos van Amstel said the underlying principle had merit.
"To get the benefits you have to demonstrate your commitment to manage your water consumption and show a willingness to pay consistently, and that is the right way of writing off debts as opposed to a blanket write-off, which creates an impression that people can get away with not paying for services," she said.