Cape Town – AfriForum has filed an application in the High Court in Cape Town 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.
The City of Cape Town says the new tariffs introduce expanded rebates for homes valued between R2.5 million and R7 million, increase pensioner income thresholds for rebates, lower city-wide cleaning charges, and a capped 2% electricity tariff rise — aiming to balance affordability with sustainable municipal services.
AfriForum acknowledged 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,” says Morné Mostert, Manager of Local Government Affairs at AfriForum.
“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.”
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,” says Mostert.
“For us, this is about fairness, transparency, and the protection of taxpayers’ interests.”
To get involved with AfriForum’s branches, click here: Sluit-aan.afriforum.co.za.
