Legal Challenge Initiated Against Cape Town’s New Water, Sanitation, and Electricity Charges

Cape Town – AfriForum has filed an application with the High Court in Cape Town, seeking clarification on the legality of the Cape Town Metro’s new tariff structure for water, sanitation, and electricity scheduled for the 2025/2026 budget.

The organization contends that basing water and sanitation tariffs on property valuations, along with the restructured electricity tariffs without the necessary cost analysis, significantly disadvantages homeowners in the Mother City.

The City of Cape Town asserts that the new tariffs will offer increased rebates for properties valued between R2.5 million and R7 million, raise income thresholds for pensioner rebates, decrease city-wide cleaning charges, and implement a capped 2% increase in electricity tariffs—aiming to strike a balance between affordability and sustainable municipal services.

AfriForum acknowledges that the Cape Town Metro provides world-class services and praises the Metro for its commitment to transparency by making cost studies accessible to the public.

“We have no doubt regarding the Metro’s commitment to effective service delivery. It is essential for municipal management to adopt innovative approaches and explore new models,” says Morné Mostert, Manager of Local Government Affairs at AfriForum.

“However, the existing model does not align with the legislation; thus, we request the court to offer a clear interpretation of the law to ensure certainty going forward.”

AfriForum is seeking a court declaration that the Cape Town Metro cannot associate any levy or fee with property valuations, outside the framework established in the Local Government: Municipal Property Rates Act; to declare that the three tariffs contradict the Constitution and the principle of legality in their dependence on property valuations; and to suspend the declaration of unconstitutionality until 30 June 2026, which coincides with the conclusion of the current financial year.

AfriForum emphasizes that tariffs ought to be reasonable and equitable, reflecting the true costs of service provision rather than merely property values.

The organization notes that this new approach is part of a broader multi-year strategy, indicating that some of the Metro’s policy frameworks may need adjustments.

“AfriForum is dedicated to ensuring that the law is upheld and that residents in the Cape Town Metro are protected by guaranteeing that tariffs are established in a fair and legal manner,” states Mostert.

“For us, it is about fairness, transparency, and protecting the interests of taxpayers.”

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