High Court Declares Property-Based Water Tariffs Unfair and Unlawful

Cape Town – The High Court has deemed the City of Cape Town’s contentious water tariff model, which is based on property value, unlawful and invalid.

On Thursday, 30 April, the court affirmed that municipal services should only be billed in relation to their actual usage, declaring that charges tied to property value were unjust and improper.

AfriForum, which contested this approach in court, remarked: “This ruling validates the essential principle that service charges should reflect actual usage.”

From the beginning, AfriForum argued that the City of Cape Town’s method of “charging tariffs based on property value” was both unjust and illegal.

Jurie Ferreira, AfriForum’s Regional Head for the Southern Region, noted that the court’s decision highlighted the necessity for tariff structures to be transparent, logical, and legally justified.

“Any effort by municipalities to generate revenue through arbitrary or indirect means falls well outside the boundaries of the law – a position the court has now reiterated,” Ferreira stated.

“There is no logical link between water usage and property value, and the court has reaffirmed that tariff models based on this relationship are both unjust and unlawful.”

Ferreira emphasized that this ruling underscores the essential role of the courts in safeguarding citizens from unjust government actions.

Morné Mostert, Manager of Local Government Affairs at AfriForum, indicated that the ruling specifically addresses the implementation of this tariff model in Cape Town but holds significant ramifications for municipalities nationwide.

“Municipalities across the country will now be required to reassess their tariff structures in light of the clear standard established by the court, which states that consumption-linked tariffs are not optional but a legal obligation,” Mostert elaborated.

“This ruling arrives at a pivotal moment in the budget cycle.

“It compels not only the City of Cape Town but all municipalities to rectify their methods for establishing tariffs.

“The principle is simple: you only pay for what you use, nothing extra.”

Meanwhile, AfriForum has affirmed its commitment to ensuring that the court’s decision is properly enforced.

According to the ruling, this tariff model will be nullified effective 30 June 2026.