(Photo: GroundUp/Ashraf Hendricks)
The High Court in Cape Town ruled in AfriForum’s favor on Thursday and determined that the City of Cape Town’s implementation of its controversial tariff model for water is illegal and invalid. This model, which bases charges on the value of the property in question, will be set aside as of June 30 under the ruling.
The court confirmed that municipal services may only be charged proportionally to their actual use and that charges based on the value of the property in question are illegal and unfair. This judgment validates the principle that services should be charged according to consumption.
‘Water use has no relation to property value’
According to Jurie Ferreira, AfriForum’s regional head for the southern region, the ruling confirms that tariff structures must be transparent, rational and legally defensible.
“Any attempt by municipalities to generate an income through arbitrary or indirect measures falls outside the framework of the law – and the court has now reaffirmed this.
(Archive photo:
pixabay)
“Water use has no rational connection with the value of a property, and the court has now confirmed that tariff models that follow this approach act unfairly and illegally,” says Ferreira.
Morné Mostert, manager of local government affairs at AfriForum, emphasizes that the decision has implications for municipalities right across the country.
“This ruling comes at a crucial time in the budget cycle. It forces not only the Cape Town metro, but also all municipalities to correct their approach to rate setting. It boils down to a simple principle: you pay for what you use, nothing more.
“Municipalities across the country will have to re-evaluate their rate structures based on the clear standard that the court has now set, namely that rates linked to consumption are not optional, but a legal requirement.”
AfriForum emphasized that the verdict is particularly important at a time when households are under tremendous financial pressure.
“By linking rates strictly to consumption, consumers are empowered to control their own expenses. If you work sparingly with water, your bill should reflect this, regardless of the valuation of your yard.”
FF Plus: Residents are unnecessarily taxed
Pieter Jansen van Vuuren, FF Plus councilor in the City of Cape Town, says the ruling confirms the party’s continued criticism against the city’s fixed rates for cleaning, water and sewerage in the 2025-26 budget.
The court also ordered the city to pay the legal costs of the applicants, including the South African Association for Property Owners (Sapoa) and AfriForum.
“The FF Plus has strongly objected to the rate structure from the beginning and has warned that linking fixed rates to property values is unfair and unconstitutional. Rates must be based on actual consumption and services rendered, not on the market value of a property.
“This system was in fact a disguised additional property tax and particularly punished middle-class and working residents who are already suffering from rising costs. The court ruling is proof that the DA in Cape Town did not find the right balance between revenue generation and fairness towards taxpayers,” says Jansen van Vuuren.
ActionSA warns against further legal costs
ActionSA MP Dereleen James welcomed the ruling but expressed her concern about the financial burden the legal fees place on taxpayers. She appeals to the city not to appeal against the verdict.
“It is extremely unfortunate that Cape Town’s taxpayers are now being burdened with the costs order as a result of the city’s decision to take this matter to court. This judgment underlines the consequences of poor decision-making and management, which ultimately places unnecessary financial pressure on residents.”
ActionSA further warned the city not to appeal against this verdict, but rather to accept the court’s findings and act in the best interest of residents, and not waste another cent on a case of its own making.
“This ruling presents a critical opportunity to urgently reconsider tariff structures and, more importantly, to provide meaningful relief to households that are already suffering.
“ActionSA calls on the city to use this moment as a turning point to prioritize fairness and affordability in its policies, and to ensure that residents no longer have to pay the price for unlawful decisions.”