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Body corporates can disconnect electricity supply if unit owners do not pay

Body corporates can disconnect electricity supply if unit owners do not pay

The days of recalcitrant unit owners and their tenants occupying sections in a sectional title scheme, without paying for electricity consumption, might be over according to Gary Boruchowitz, founder of Boruchowitz Attorneys.

A recent High Court Judgement, ‘Body Corporate The Straight v Katisi’, found in favor of the applicant, granting the body corporate permission to disconnect the electricity supply to the respondent’s section, further authorizing that the electricity supply remain disconnected until the outstanding electricity charges on the respondent’s levy statement are paid in full.

Up until this Judgment, a body corporate’s disconnection of electricity supply to a section, without an owner agreeing to same or the authority of a court order, was illegal and considered an act of spoliation i.e., the wrongful deprivation of another’s right of possession,” says Boruchowitz.

What this Judgement has ruled is that if an owner fails to reimburse the body corporate, the body corporate is entitled to take the necessary steps to mitigate its losses and prevent further usage until the electricity charges have been settled,” he adds.

The Judgement held that the body corporate cannot be expected to continue to pay the electricity charges of a non-paying owner, who will enjoy the benefits of electricity, while the other owners in the sectional title scheme are unfairly contributing on his or her behalf – and at the detriment of the body corporate’s finances.

The disconnection of the unit owner’s supply of electricity can operate or function as a preventative measure to safeguard other owners by ensuring that the financial responsibility is shared equally and proportionately to avoid financial hardships and the repercussions thereto.”

At the very least Boruchowitz says that the body corporate will be able to prevent the situation from becoming worse by disconnecting further electricity supply to the unit in circumstances where the respondent is not paying and avoiding the risk of the municipality disconnecting the electricity supply to every other unit in the scheme.

If you are a body corporate facing a similar scenario, schedule a consultation with Boruchowitz Attorneys by emailing Gary Boruchowitz or calling 079 339 7369.

Read more from Boruchowitz Attorneys:

The unlawful disconnection of municipal services and the extortion of money

Why litigating against municipalities makes financial sense for property owners

About Boruchowitz Attorneys:

Boruchowitz Attorneys is a boutique law firm founded by Gary Boruchowitz in July 2022. An admitted attorney, Gary spent a decade at Schindlers Attorneys working in the Municipal and Property Law departments. He has experience in all types of municipal and property related matters, representing a range of clients including commercial business parks, commercial and residential landlords, body corporates and individuals, having acted extensively in High Court litigation against the City of Johannesburg and other municipalities in SA.

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Property Wheel.

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