Residential Society Services Exempt from Commercial Tariff

21 Feb 2024 CW Team

In a recent ruling, the court has declared that common services within housing societies are exempt from commercial power tariffs. The decision marks a significant clarification on the categorization of power tariffs for residential societies, providing relief from potential financial burdens associated with commercial rates.

The court's verdict addresses a common concern among housing societies that utilise common areas and services, such as lighting, elevators, and common amenities. The ruling affirms that these services fall under the residential category, sparing housing societies from the higher power tariffs typically applicable to commercial establishments.

This distinction in power tariff classification is expected to alleviate financial pressures on residents within housing societies, ensuring that they are charged at residential rates for shared services. The ruling aligns with the intent to encourage residential community development without subjecting residents to the cost implications associated with commercial power tariffs.

The decision not only provides clarity on the applicable tariff for housing societies but also sets a precedent for similar cases. It underscores the importance of distinguishing between residential and commercial power tariffs based on the nature of services provided within community living spaces. The ruling is poised to have a positive impact on the financial aspects of managing housing societies and contributes to fostering a conducive environment for residential community development.

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