Good dayMy company owns a residential pr...

Asked by Peter on 22-04-2024 14:24:41
Question posted in the General Law category relating to Northern Cape

Good day My company owns a residential property out of town which was rezoned thirty years ago. We applied to Eskom for a bulk supply for fifty houses. We distribute the electricity to each house with conventional meters. We bill each owner at Eskom rates and then pay Eskom. Is this permitted? Eskom knows that we operate in this manner and we have never had any issues in this regard. One of the residents wants to know if we are allowed to do this. Thank you

Further information relating to Question:

In our constitution it is stated that we can charge the same tariff as the municipality.

Message from the Lawyer

Posted by Att. Patrick on 22-04-2024 15:21:57

Hi there and thank you for your question,

I am a practicing attorney based in South Africa and I will assist you with your question. Please feel free to ask as many follow up questions in order to clarify your question. If you have a new question, you must please open a new thread.

Please keep in mind that our discussions is for general information purposes only. Our engagement on this website does not create an attorney-client relationship.

Yes, you can do that. There is no difference between doing that and what a body corporate does when they are billed for electricity and then they recover the costs from the various apartments in the building according to their own individual meters. 

Message from the client

I would also like to know whether our company may suspend the electricity to those who don't pay after been given fourteen days notice. If we don't receive all the monies in time to cover Eskom bill they automatically suspend our bulk supply and everyone's sits without electricity even those who have paid. We are also penalized R1500 for re connection.

Thank you

Message from the Lawyer

Posted by Att. Patrick on 22-04-2024 16:21:36

I assume that you guys have some sort of supply agreement? If that agreement contains a clause allowing you to suspect the supply, then you can do that. You just can't cut off their water. 

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