The monthly Levy contributions are the lifeblood of any Community Scheme.
As Managing Agents, we are often asked as to whether the electricity of a defaulting owner may be disconnected as the defaulting owner would not be paying levies and would (almost) certainly not be paying their electricity either. Regrettably, the disconnection of electricity is not legal unless:
a)Â Â Â Court order is obtained:Â
Not just any Court either as an application must be submitted to the High Court for an order approving the disconnection of the electricity supply to a unit.
b)Â Â Â Pre-paid meters are installed:
Prescribed management rule 29(4) of the Sectional Titles Schemes Management Act describes the steps that a Sectional Title Scheme must follow to install separate pre-paid meters on the common property. Should a person not purchase electricity then there would simply be no electricity supplied:
“29(4) A body corporate may on the authority of a special resolution install separate pre-payment meters on the common property to control the supply of water or electricity to a section or exclusive use area; provided that all members and occupiers of sections must be given at least 60 days notice of the proposed resolution with details of all costs associated with the installation of the pre-payment system and its estimated effect on the cost of the services over the next three years.
The body corporate cannot take the law into its own hands. The disconnection of electricity to a unit without the authority of a court order is illegal.
In the case of Lion Ridge Body Corporate v Alexander and Others (Case no. 17074/2022 in the Gauteng Local Division of the High Court) the Lion Ridge Body Corporate applied to the Court for the following orders:
•   authorising the body corporate to disconnect the electricity supply to 4 units
•   restriction of the water supply to 4 units
The body corporate argued in their application that:
o   under section 2(5) of the Sectional Titles Schemes Management Act, it must enforce its rules,
o   section 4(i) of the Sectional Titles Schemes Management Act allows the scheme to do all things reasonably necessary for the enforcement of its rules.
o   section 4(h) of the Sectional Titles Schemes Management Act permits the scheme to contract with owners and occupiers for the provision of services and
The judge noted that:
the scheme operated in accordance with the Sectional Titles Schemes Management Act and
the scheme is empowered to enter into agreements with owners and
to make laws for its administration and
that the scheme may not debit any amount that is not provided for in the Sectional Titles Schemes Management Act or the scheme’s management rules unless it first takes judgment for that amount or the member consents to the charges.
The judge then described the owners’ Constitutional rights before dismissing the Body Corporate’s applications:
to be protected against arbitrary deprivation of property (section 25 (1) of the Constitution, 1996),
to sufficient water (section 27(1)(b) of the Constitution),
to receive electricity from a municipality, even where the electricity is transmitted through an intermediary such as the body corporate (the judge described this as a public law right and cited the Constitutional Court case of Joseph v City of Johannesburg (2010 (4) SA 55).
It is therefore not a foregone conclusion that a Court Order would be simply granted as it must be argued to the satisfaction of a judge in the High Court.
The Community Schemes Ombud Service have also confirmed that sectional title schemes do not have the legal right to terminate or reduce electricity services when an owner is in arrears with their levies.
We could also recommend the following very well written articles on this topic:
Can a Body Corporate Cut Off My Electricity?
Comply with Levies and Electricity Payments or Face Power Suttoff
