In a landmark ruling that strengthens the protection of the rights of tenants this week, the Supreme Court of Appeal (SCA) has outlawed the practice of using utility cut-offs as a weapon to pressure tenants into vacating properties.
The judgment explicitly prevents municipalities from disconnecting essential services at a landlord’s request without first notifying and giving tenants a right to be heard.
The case centred on tenants in Maclear who, in February 2023, had their electricity and water supplies abruptly disconnected by the Elundini Local Municipality at the request of the property owner. The action was taken without any prior warning to the occupants, who launched an urgent legal application to restore services.
The SCA’s ruling overturned a decision by the Makhanda High Court in Eastern Cape, which had dismissed the tenants’ case.
The high court had agreed with the municipality’s argument that the electricity disconnection was a mere “contractual matter between the property owner and the municipality”, and therefore did not require notice to the tenants.
The SCA soundly rejected this reasoning, delivering a robust defence of tenants’ rights.
The court found that the high court had “misdirected itself” and that the municipality “misunderstood the nature of municipal services”.
In a powerful affirmation of procedural justice, the appellate court drew on the precedent set by the Constitutional Court in Joseph vs City of Johannesburg.
The SCA held that “the provision of electricity is a basic municipal service and a constitutional obligation”.
Crucially, the judgment stated that a “municipality cannot avoid its duty to act procedurally fairly towards the tenants due to its contractual relationship with the owner of the property”.
This finding dismantles a common coercive tactic used by landlords to circumvent formal eviction processes, effectively making a property uninhabitable to force tenants out.
The court affirmed that tenants have a direct, protected legal interest in the continuous supply of basic services.
The ruling established that the appellants “had a prima facie right not to have a basic service like electricity terminated without notice”.
It clarified that the municipality’s actions “fell squarely within s 3(1) of Paja (Promotion of Administrative Justice Act), as they materially and adversely affected the rights and dignity of the appellants”.
Consequently, the court mandated that the municipality was “required to provide the tenants with reasonable notice and an opportunity to be heard before disconnecting the supply”.
While the SCA agreed with the high court that the water disconnection issue involved a separate municipality that was not party to the case, its ruling on electricity sets a binding precedent.
The practical outcome was an order for the Elundini Local Municipality to restore the electricity supply to the property within 24 hours.
The judgment sends an unequivocal message to municipalities and landlords alike that tenants cannot be deprived of essential services without due process, closing a significant loophole that has long been exploited in South Africa’s rental housing market.
