Cape Town – The City of Cape Town’s controversial water tariff model based on the value of a property has been found to be unlawful and invalid by the High Court.
The court confirmed on Thursday, 30 April, that municipal services may only be charged in proportion to their actual use and that charges based on the value of the property were unlawful and unfair.
AfriForum, which challenged the move in court, said: “This ruling confirms the fair core principle of charging services based on usage”.
AfriForum said it argued from the outset that the City of Cape Town’s approach to “charge tariffs based on the value of the property” was unfair and unlawful.
Jurie Ferreira, AfriForum Regional Head for the Southern Region, stated that the court ruling confirmed 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 said.
“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 said that this ruling confirmed that the courts continue to play a critical role in protecting citizens against unfair government practices.
Morné Mostert, Manager of Local Government Affairs at AfriForum, said 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.
“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 said it will continue to ensure that the court’s decision is correctly implemented.
According to the ruling, this tariff model will be set aside from 30 June 2026.
