Court stops landlords making a profit on their tenants’ electricity supply
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Court stops landlords making a profit on their tenants’ electricity supply
Landlords are not entitled to profit from providing electricity to their tenants. This was confirmed in the South Gauteng High Court today, when it dismissed an application brought by a landlord to review and set aside the ruling of the Gauteng Rental Housing Tribunal in a complaint dealing with unfair electricity service charges.
In 2013 the Tribunal handed down a ruling in favour of the tenants of the Plettenberg Flats in Hillbrow. Young Min Shan, the landlord at Plettenberg, was paying City Power roughly R385 per month for a “service charge”, which City Power levied to supply electricity to the block of flats, in addition to the cost of electricity consumption. But Young Min Shan then passed on this service charge to each of its individual tenants – effectively multiplying it by the number of tenants in the building.
