Clear Away Property Investments CC v Maquassi Hills Local Municipality (kpm14/2018) [2019] ZANWHC 34 (4 July 2019)

Clear Away Property Investments CC v Maquassi Hills Local Municipality (kpm14/2018) [2019] ZANWHC 34 (4 July 2019)

The court found that the respondent failed to implement the provisions of section 95 of the Municipal Systems Act for nearly four years due to delays in converting the applicant's account from post-paid to prepaid. During June 2014 to June 2017, the applicant was billed on the post-paid system, and the prepaid meters installed were not operational. The respondent's tariffs for that period did not provide for a basic charge for prepaid meters, and the applicant had discharged its obligations by paying the post-paid charges. The respondent's attempt to retroactively levy prepaid basic charges was unjustified. The court held that the applicant was not liable for any costs related to prepaid...

Citation
[2019] ZANWHC 34
Parties
Applicant: Clear Away Property Investments CC; Respondent: Maquassi Hills Local Municipality
Court
North West High Court, Mafikeng
Jurisdiction
South Africa
Judgment Date
4 July 2019
Case Number
KPM14/2018
Procedural Posture
Review Application / Final Judgment
Outcome
Application partly granted in favour of the applicant with punitive costs against the respondent.
Judges
GURA
Legal Topics
Municipal Tariffs, Prepaid Electricity Meters, Credit Control and Debt Collection, Judicial Review, Municipal Systems Act
Administrative Law Land and Property Municipal Tariffs Prepaid Electricity Meters Credit Control and Debt Collection Judicial Review Municipal Systems Act

Case Brief

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Parties

Clear Away Property Investments CC

Applicant

Maquassi Hills Local Municipality

Respondent

Procedural Posture

Review Application / Final Judgment

Legal Issues

  1. 1 Whether the respondent was entitled to charge the applicant a monthly basic charge for prepaid meters installed on the applicant's property.
  2. 2 Whether the respondent is obliged to remove the prepaid meters and bill the applicant on the conventional electrical tariff.
  3. 3 Whether the respondent is obliged to rectify the applicant's account to remove all inaccurate charges.

Ratio Decidendi

The court found that the respondent failed to implement the provisions of section 95 of the Municipal Systems Act for nearly four years due to delays in converting the applicant's account from post-paid to prepaid. During June 2014 to June 2017, the applicant was billed on the post-paid system, and the prepaid meters installed were not operational. The respondent's tariffs for that period did not provide for a basic charge for prepaid meters, and the applicant had discharged its obligations by paying the post-paid charges. The respondent's attempt to retroactively levy prepaid basic charges was unjustified. The court held that the applicant was not liable for any costs related to prepaid...

Court Disposition

Application partly granted in favour of the applicant with punitive costs against the respondent.

Orders

  • The respondent is ordered to write off all prepaid basic charges, together with VAT, interest, legal and miscellaneous fees on such amounts within thirty days from date hereof.
  • The respondent must bill the applicant using the prepaid tariff with effect from July 2017 onwards within thirty days from date hereof.