High Court clarifies Limits on Municipalities' Power to cut Electricity for Non-payment of other Services
The High Court has handed down an important judgment in Council for the Municipality of Windhoek v Electricity Control Board (NAHCMD 140, 24 March 2026), clarifying when electricity supply may lawfully be reduced or discontinued. ESI represented the Electricity Control Board.
The key takeaway from the judgment is that pre-paid electricity cannot be cut for debt that is not electricity related. A municipality may not reduce or discontinue electricity supply where a customer is up to date with electricity payments, but in arrears on rates, taxes, water or other municipal services. Section 31 of the Electricity Act permits disconnection only in narrowly defined circumstances relating to electricity itself.
Where there is any conflict between the Electricity Act and the Local Authorities Act (or municipal regulations or contracts), the Electricity Act prevails. Municipal electricity supply regulations and contracts are subordinate to the Act.
The judgment strikes a careful balance between effective municipal debt collection and the statutory protection of access to electricity as an essential service. Any broader powers to use electricity disconnections as a debt‑collection tool will require legislative reform, not creative interpretation.
A significant decision for municipalities, regulators, practitioners and consumers alike.
