| (a) | for the purpose of utilising the service utility as a mechanism to assist the municipality in the performance of any of its functions or powers referred to in section 8; |
| (b) | if the municipality can demonstrate— |
| (i) | that that function or power could be performed more efficiently by a separate structure in order to achieve the strategic objectives of the municipality; and |
| (ii) | that the service utility would benefit the local community; and |
| (c) | if all other conditions that may be prescribed have been complied with. |
| (2) | If a municipality establishes a service utility for the purpose of using that service utility as a mechanism to provide a municipal service, Chapter 8 applies. |
[Section 86J inserted by section 18 of Act No. 44 of 2003]
