Lawsuit Filed Against Cape Town’s New Water, Sanitation, and Electricity Rates

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

The organization contends that basing water and sanitation tariffs on property valuations, along with the restructuring of electricity tariffs without the necessary cost analysis, unfairly impacts homeowners in the Mother City.

The City of Cape Town argues that the updated tariffs will offer expanded rebates for properties valued between R2.5 million and R7 million, increase pensioner income thresholds for rebates, decrease city-wide cleaning fees, and implement a capped 2% increase in electricity tariffs—striving to balance affordability with sustainable municipal services.

AfriForum acknowledges that the Cape Town Metro provides world-class services and appreciates the Metro’s commitment to transparency in making cost studies publicly accessible.

“We recognize the Metro’s commitment to effective service delivery. It is crucial for municipal management to think innovatively and examine new models,” says Morné Mostert, Manager of Local Government Affairs at AfriForum.

“However, the existing model does not align with legislative requirements; consequently, we ask the court for a clear interpretation of the law to ensure certainty going forward.”

AfriForum seeks a court declaration that the Cape Town Metro is prohibited from connecting any levy or fee to property valuations, outside the specific provisions of the Local Government: Municipal Property Rates Act; to declare that the three tariffs conflict with the Constitution and the principle of legality that relies on property valuations; and to delay the declaration of unconstitutionality until 30 June 2026, coinciding with the conclusion of the current financial year.

AfriForum emphasizes that tariffs should be reasonable and equitable, reflecting the actual costs of service delivery rather than solely property values.

The organization notes that this new approach is part of a wider multi-year plan, suggesting that some of the Metro’s policy frameworks may need to be revised.

“AfriForum is dedicated to ensuring that the law is respected and that residents in the Cape Town Metro are safeguarded by making sure that tariffs are set in a fair and legal manner,” states Mostert.

“For us, it centers on fairness, transparency, and protecting the interests of taxpayers.”

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