AfriForum approaches court for clarity on Cape Town’s new tariff model

AfriForum filed an application in the High Court in Cape Town on Monday seeking clarity on the legality of the Cape Town Metro’s new tariff model for water, sanitation and electricity, which is applied in the 2025/2026 budget. According to the organisation, the use of property valuations as the basis for water and sanitation tariffs, as well as the restructuring of the Metro’s electricity tariffs without the necessary cost study, poses a serious disadvantage for the Mother City’s homeowners.

AfriForum acknowledges that the Cape Town Metro delivers world-class services to residents and that the Metro has also shown great transparency by making cost studies fully available.

“We do not doubt the Metro’s commitment to good service delivery. It is important that municipal management thinks innovatively and investigates new models. However, the current model is not in line with the legislation, therefore we ask that the court interpret the law clearly so that there is certainty about the way forward,” says Morné Mostert, Manager of Local Government Affairs at AfriForum.

AfriForum is asking the court to declare that the Cape Town Metro may not link any other levy or fee to property valuations other than that prescribed in the Local Government: Municipal Property Rates Act; to declare that the three tariffs are contrary to the Constitution and the principle of legality insofar as they are based on property valuations; and to suspend the declaration of unconstitutionality until 30 June 2026, which is the end of the current financial year.

AfriForum emphasises that tariffs must be reasonable and fair and that consumers must pay a direct reflection of the actual cost of provision and no longer simply based on property value. The organisation points out that the new strategy is part of a larger multi-year plan and that some of the Metro’s policy frameworks will likely need to be adjusted.

“AfriForum will ensure that the law is respected and that residents in the Cape Town Metro are protected by ensuring that tariffs are determined fairly and legally. For us, this is about fairness, transparency and the protection of taxpayers’ interests,” concludes Mostert.

To get involved with AfriForum’s branches, click here: Sluit-aan.afriforum.co.za.