What on earth is a Dunning Charge? Not simple to explain but, let me have a go.
The avaricious Municipality of Cape Town has invented a new charge levied against unsuspecting property owners. If for any reason you have not paid your rates bill, these kind boys and girls will send you a letter threatening to cut your water supply and pre-paid electricity meter. For this there is a charge of some eighty six Rand. But wait there‘s more! Should you as a good citizen pay the arrears, a further “Dunning “charge will be levied against you, which is the same value of eighty six Rand again to lift the threat of the cut off. This too is called a “dunning charge”
Thus at their pleasure you will be levied on your next rates bill for twice eighty six Rand.
All this is in spite of the fact that it is illegal to cut off our pre-paid electricity. What is more these boys and girls say that it does not matter that you may be using less than the free six kilolitre allocation of water they are still entitled to cut off your water! If you us say 5 kilolitres of water in any one month, your water and sewerage bill will be R0.00.
Nowhere in their account structure can you possibly read about a “dunning charge”, so if you want to hear how bad these people have been and their illegal acts you have to call their helpful helpline to ascertain how bad you have been in not paying your rates.
In the light of the foregoing, let me introduce you to some news of late where the residents of Colesburg declared a dispute with the local council legally and paid their rates bills into a trust account from where they paid the amounts for water and electricity to the council. In spite of this, the water and electricity was cut off from the protestors, and the municipality was taken to court, and the magistrate issued judgment on favour of the protesting residents. Costs were awarded to the municipal manager, one Amos Mpela, for him to pay in his personal capacity.
It has been officially confirmed that cutting off electricity for municipal rates arrears is illegal. This announcement was made this week by the South African energy regulator, NERSA. This means that all municipalities that cut off electricity because of rates disputes were acting illegally. The fines to municipalities who transgress are quite severe, and this has left the municipalities open to a number of class actions
If it is illegal for municipalities to disconnect electricity to recoup rates arrears, then surely for them to charge for this illegal activity is also illegal?

Jeremy Taylor