Real Estate Investor Magazine South Africa May/June 2015 | Page 32

MANAGING

Power

Cuts

Are Trustesss Allowed To Cut
Electricity Supply To Residents Units?
BY MICHAEL BAUER

I

n many sectional title schemes there is an
ongoing problem of short payment or nonpayment of levies, and it sometimes happens
that the trustees decide to take matters into their
own hands by disconnecting the electricity supply to
the unit inhabited by the non-payer. This, however,
is illegal if they have done so without a court order
authorising this.
In South Africa, legislation is clear in that shutting
off services such as electricity without a statutory right
to do so is an offence.
The supply of electricity is governed by the Electricity
Regulation Act 4 of 2006 and section 22 deals with
the powers of the licensee. Only the holder of the
license which is granted by the Regulator is allowed
to disconnect the electricity supply to a unit – and this
must be for non-payment of the electricity, not for any
other outstanding amounts.

“Shutting off services such as
electricity without a statutory
right to do so is an offence.”
Only bulk suppliers of electricity such as Eskom or
a subsidiary such as your municipality (for example,
City Power) or the local suppliers can disconnect the
electricity supply after notice is given to the resident,
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MAY 2015 SA Real Estate Investor

but because body corporates or trustees are not the
licensee or the distributor, they cannot cut the supply
to any section.
Trustees have to deal with the non-payment of
levies as provided in the Sectional Titles Act, which in
sections 37 (2) and (2A), states that the body corporate
can deal with the non-paying owner in the magistrates
or High Court.
Body corporates do, however, sometimes take the
law into their own hands by cutting off the electricity
supply themselves because they see this an effective
and quick way of dealing with the situation. In most
cases these trustees get away with it because the owner
will most likely not have the financial means to take
them to court.
The recourse owners will have in future if they find
themselves in situations such as these, will be to go to
the Community Schemes Ombud, who will be able to
assist those who do not have lawyers and cannot afford
expensive court fees.
The key is, however, for owners to pay their levies in
full, which will alleviate the stress trustees have to go
through in managing and juggling funds when they do
not receive payments. Withholding levy payments puts
the scheme in a precarious financial position. Leaving
trustees to often have the arduous task of sorting out
collections of funds way after they are due.

RESOURCES
IHFM
www.reimag.co.za