In Rademann v Moqhaka Local Municipality and Others [2012] JOL 28591 (SCA), the Supreme Court of Appeal dealt with the question of whether a municipality may cut off the supply of electricity to a property in the event that the owner fails or refuses to pay property rates.

A Kroonstad resident, Ms Rademann, refused to pay rates because of her dissatisfaction with service delivery by the Municipality. She was a member of a ratepayers’ association whose members had decided upon the same course of action. Ms Rademann continued to pay for electricity and other services. After providing written notice, the Municipality disconnected the electricity supply to her property.

The High Court held that the Municipality did not require a court order before disconnecting the supply. Furthermore, the Municipality could indeed cut off the supply even when a consumer’s arrears were not in respect of electricity.

On appeal, the SCA expressed its strong disapproval of the withholding of payment for rates and municipal services. It dismissed the appeal, confirming that the Municipality did not need a court order to disconnect the electricity supply to a consumer who had entered into a supply agreement with the Municipality.

On appeal to the Constitutional Court, it was again confirmed that the Municipality could cut off the supply even when a consumer’s rates (not electricity) account was in arrears. No court order was required where a supply agreement existed. However, the Constitutional Court observed that a municipality is only entitled to claim payment for a service that it has actually rendered. There is no obligation on a consumer to pay the municipality for a service that has not been rendered.

The appeal was dismissed.