Supply of Electricity

(1) Every applicant for a supply of electrical current from the Council shall deposit with the Council such sum as the Council deems sufficient to cover the estimated cost of two months' supply, provided that:

(a) the Council may permit an applicant to deposit such sum as it deems sufficient to cover the estimated cost of one month's supply where the applicant elects to pay by the direct debit method;

(b) the Council may require an applicant to deposit such sum as it deems sufficient to cover the estimated cost of three months' supply in such circumstances as the Council deems appropriate.

(2) Should the amount deposited in terms of sub-section (1) subsequently prove to be insufficient, the consumer shall, within 7 days of being called upon to do so by the Council, deposit such further sum as may be necessary to increase the deposit to an amount sufficient to cover the actual or provisionally assessed cost of two months' supply or, if the Council deems it appropriate, of three month's supply. The Council may, if it considers the amount deposited to be excessive, authorise the refund of a portion thereof. 

(3) The Council may accept a written guarantee in lieu of any deposit required in terms of sub-section (1) or (2) hereof.

(4) Where an applicant for the supply of electric current or an existing consumer of electric current is a corporate person (other than a public legal body or a public listed company), such applicant or consumer shall, in addition to any security provided in compliance with the aforegoing provisions of this section, lodge with the Council when required by him to do so, a guarantee for an amount specified by and in terms approved by the Council and given by such natural person or persons as the Council may approve in their personal capacities; provided that the Council may at any time require any such consumer to furnish a further guarantee for such additional amount as the Council may determine.

(5) Failing compliance with any request for a deposit or increased deposit or for a guarantee as provided in this section, the supply of electricity may be withheld until such deposit has been made or the guarantee furnished or if the supply has already been connected, it may forthwith be disconnected and thereafter the supply shall not be reconnected until the deposit has been paid or the guarantee furnished.

(6) The deposit lodged with the Council in terms of this section may be applied to the payment or part payment of any amount due to the Council by the consumer either for electricity supplied or for services rendered in connection with such supply.

(7) On 30 June in each year the Council shall cause the deposit account of every consumer who made a deposit under this section prior to the 31 December in the year immediately proceeding to be credited with simple interest at such rate, not exceeding 3% per annum, as the Council may from time to time determine; provided that no such interest shall be credited where the deposit has been held by the Council for less than six months. The interest so credited shall be paid to the consumer at the time the amount deposited by him in terms of this section is refunded; provided that the Council may in the case of deposits of R50 and over and where the consumer so requests, credit the interest to the consumer's account for current consumed or provisionally estimated to have been consumed.