Municipal Termination

by Adebah Constant • 2 MIN • 457 Words

Municipal Termination- Is a court order necessary?

a Review by Adebah Constant

According to this article in the Agent Magazine (Sep/ Oct 2018; Issue 134, p24), in 2018, the municipalities were not required to have a court order to terminate the supply of services (such as electricity and water) to a person’s property because of non-payment.
Although every attempt is being made by the municipalities to recover all accounts in arrears, and the glitch that is alleged with computerised systems, this is still allowed.

We are all aware that the cost of living has increased inversely to the employment rate in South Africa since 2018. This includes the increase in water and electricity tariffs.

In an online article (Provided by Schindlers Attorneys; by Chantelle Gladwin & Maike Gohl) on the website, ‘GOLEGAL’, the Council of Johannesburg, (COG) resorts to SMS pre-termination notices to consumers. The discussion also covers the legality of the SMS as a legal form of notice, which it is not.

Subsequently, according to ‘GOLEGAL’, most consumers then proceed to take the next best step by signing an (Acknowledgement of Debt) AOD, which requires a few conditions. One of which is an upfront payment of 50% of the balance owing.

However, with the rise in unemployment in South Africa, dishonouring the AOD is also on the rise.
Most municipality’s computerised accounting systems fail the consumer when some payments are incorrectly classed as dishonoured AOD payments.

The set parameters of this system do not include variations in the conditions surrounding the payment. As a result, a number of consumers are at worst left with mounting bills (interest on overdue accounts, administration, and re-connection fees) and without services. Legal advice can be sought if the consumer can afford it.

Further in the article it is stated among other facts that The Constitution allows consumers at least 14 days of written notice of the municipality’s decision to terminate the service.
It is my opinion that most municipalities would rather have ‘paying’ customers albeit in arrears than disconnect their service delivery.

Currently, on the City of Cape Town’s website, the municipality invites consumers to try to pay their arrears with their Arrange a Payment plan.
Here they offer payment plans for property owners and tenants who have outstanding payments on their municipal accounts.

This allows consumers to settle their debt over an extended period of time.
In conclusion, the property owner needs to constantly educate themselves about their affordability, financial plans as well as legal, and constitutional rights before deciding to rent or buy a property or to opt-in for the installation of pre-paid water and electricity meters.

References:
1. https://theppra.org.za/
2. https://www.golegal.co.za/
3. https://www.capetown.gov.za/
4. https://www.bregmans.co.za

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property infomunicipal terminationsms form of noticeAODunemployment ratecourt orderarrearsglitchcomputerised system

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