Insights into tenancy arrangements and unpaid utility bills

In a rental situation, who pays utility bills depends on the agreement between a landlord and tenant, which should be outlined in the lease.

Generally, tenants are responsible for utilities like electricity, water, and sewerage services, but this can vary, and landlords may choose to include utilities in the rent or manage them directly. Clear lease agreements and open communication can prevent misunderstandings regarding utility payments. Both landlords and tenants should understand their obligations to ensure a smooth rental experience.

In     Lesotho,     a     property    owner     is     typically responsible for paying utility bills. If electricity, urban water and sewerage bills are not paid on time, the property owner is liable for any debt and must settle any outstanding amounts due to services rendered by utilities.

The same applies where tenants have left outstanding bills or have tampered with or bypassed meters with intentions to use regulated services for free. The landlord is by law vicariously liable for damages or misconducts delinquent tenants would have done even though he or she did not know or condone it. This principle is supported by Section 21 (h) of the Lesotho Electricity Authority Act 2002, as amended.

In terms of the Act, it is the responsibility of the Lesotho Electricity and Water Authority (LEWA) to ensure financial viability of eficient regulated utilities. The Authority will endeavour to safeguard the interests of both service providers and customers. On the one hand, utilities should be financially viable to ensure reliable supply, while on the other hand, customers should be protected against unfair practices.

In the same breath, customers and utilities should all play a part in executing their responsibilities to ensure that customers pay accrued bills promptly. In tenancy cases, the landlords have a duty/liability to ensure that their tenants do not sabotage the use of services such as metering systems. The landlords must also guarantee proper and lawful use of electricity and urban water.

In cases of failure to observe the above, the regulated utilities have to enforce disconnections without notice, as guided by the Quality of Service and Supply Standards (QoSSS). For instance, precedence was set through the case of Mashamole Letoao v Lesotho Electricity Company (LEC), wherein the landlord had failed to guarantee proper electricity use on his rented premises. As a result, LEC was authorised to disconnect supply as per the Electricity Act of 1969 and Electricity Regulations (Legal Notice 16 of 1970). In such cases, LEC is entitled to refuse to reconnect electricity to the property until all fees due are paid in full. As stipulated in the QoSSS, once payment is made, LEC and WASCO will reconnect promptly and not later than two working days.

This also means that landlords are responsible for monitoring utility bills at all times to avoid delinquency cases. At the same time, the duty lies with customers to pay for regulated services.