Categories: Courts

Court rules body corporate can cut off electricity to owner over R100k levies and utilities debt

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By Vhahangwele Nemakonde

The Gauteng High Court in Johannesburg has ruled in favour of the body corporate of a residential complex in Johannesburg, in a case against one of its members.

The body corporate of The Straight had approached the court after one of its members failed to pay an amount of R107 940.63 in levies and electricity charges together with interest and costs.

Additionally, the body corporate sought authorisation to engage the services of an electrician to disconnect the electricity supply to the member’s unit until outstanding electricity charges and interest on that amount are paid.

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Body corporate vs member

The member bought the unit on 30 June 2014 for just over R1 million. As the owner of a unit of the scheme, the respondent is automatically a member of the body corporate.

The obligations of the trustees of the body corporate include the recovery of levies which are charged to its members on a monthly basis.

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The body corporate alleged that the respondent had breached his obligations regarding the payment of the levies and utilities owed for a period of 25 months from February 2021 to March 2023.

During that period, the member’s debt escalated to R107 940.63, of which R16 610.68 is for electricity.

The member admitted his debt and explained that the effects of the Covid-19 pandemic had negatively impacted him as the breadwinner in his household and that a lack of income had placed him in an unfavourable position since 2020.

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Payment arrangement

He committed to paying R8 000 a month for the outstanding levies and utilities.

The member further said he had informed the body corporate that he was willing to make the unit available for rental purposes to make an income that would be allocated towards settling the debt.

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He, however, alleged there was no agreement between him and the body corporate authorising the disconnection of electricity to his unit.

The body corporate said that a tacit agreement was entered into upon the purchase of the member’s unit in the sectional title scheme.

He was bound to the rules and regulations passed by the trustees of the body corporate. General and special resolutions passed by the trustees were enforceable against the member, it argued in court papers.

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The body corporate has paid the member’s electricity charges from February 2021 until March 2023. It pays Eskom for electricity for all the units and then recovers the money from the owners.

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“If it does not recover these payments, it will continue to advance monies to Eskom, on behalf of owners of units who do not pay for electricity consumption,” reads the court papers.

“This will deplete any savings it may have and ultimately cause the body corporate to have a negative bank balance, risking a disconnection of electricity supply to all the units and being placed under administration.”

Judgment

In a judgment delivered on Friday, Judge Leonie Windell ordered the member to settle the R107.940 debt and an interest rate of 11.25%.

The member has until 13 January 2025 to settle the electricity bill plus interest, failing which will result in the disconnection of electricity to his unit until the bill is settled.

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Published by
By Vhahangwele Nemakonde
Read more on these topics: debtElectricityPower Outage