Court rules in AfriForum’s favour: Cape Town’s tariffs must be based on actual usage
The High Court in Cape Town ruled in AfriForum’s favour today and determined that the City of Cape Town Metro’s implementation of its controversial water tariff model based on the value of the property in question is unlawful and invalid. According to the ruling, this tariff model will be set aside from 30 June 2026.
The court confirmed today that municipal services may only be charged in proportion to their actual use and that charges based on the value of the property in question are unlawful and unfair. This ruling confirms the fair core principle of charging services based on usage.
According to Jurie Ferreira, AfriForum Regional Head for the Southern Region, today’s ruling confirms that tariff structures must be transparent, rational and legally justifiable. “Any attempt by municipalities to generate revenue through arbitrary or indirect measures falls squarely outside the framework of the law – and the court has now reaffirmed this position,” Ferreira explains.
AfriForum argued from the outset that the City of Cape Town’s approach – to charge tariffs based on the value of the property – is unfair and unlawful. “There is no rational relationship between water usage and the value of a property, and the court has now confirmed that tariff models that follow this approach act unfairly and unlawfully,” Ferreira believes.
Morné Mostert, Manager of Local Government Affairs at AfriForum, emphasises that the ruling specifically concerns the application of this tariff model in the City of Cape Town, but the decision also has important implications for municipalities in the rest of the country. “Municipalities across the country will now have to re-evaluate their tariff structures based on the clear standard that the court has now set, namely, that tariffs linked to consumption are not optional but a legal requirement,” explains Mostert.
Ferreira maintains that this ruling confirms that the courts continue to play a critical role in protecting citizens against unfair government practices.
Mostert adds: “This ruling comes at a crucial time in the budget cycle. It forces not only the City of Cape Town but also all municipalities to now correct their approach to the setting of tariffs. The principle is straightforward: you only pay for what you use, nothing more.”
In the meantime, AfriForum will continue to ensure that the court’s decision is correctly implemented.
