High Court Rules Property-Based Water Tariffs Unjust and Illegal

Cape Town – The High Court has ruled that the City of Cape Town’s controversial water tariff model, which is based on property values, is unlawful and invalid.

On Thursday, 30 April, the court confirmed that municipal services should be billed solely based on actual usage, asserting that charges linked to property values are unjust and inappropriate.

AfriForum, which challenged this approach in court, stated: “This ruling reinforces the fundamental principle that service charges must reflect actual usage.”

From the outset, AfriForum contended that the City of Cape Town’s strategy of “charging tariffs based on property value” was both unfair and illegal.

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

“Any attempt by municipalities to generate revenue through arbitrary or indirect methods is clearly outside the law – a stance that the court has now reiterated,” Ferreira remarked.

“There is no reasonable connection between water consumption and property value, and the court has reaffirmed that tariff models based on this link are both unjust and illegal.”

Ferreira pointed out that this ruling illustrates the vital role of the judiciary in protecting citizens from unfair government actions.

Morné Mostert, Manager of Local Government Affairs at AfriForum, noted that the ruling specifically addresses the application of this tariff model in Cape Town but has far-reaching implications for municipalities across the country.

“Municipalities nationwide will now need to reevaluate their tariff structures in accordance with the clear standard set by the court, which states that consumption-based tariffs are not merely optional but a legal necessity,” Mostert explained.

“This ruling comes at a crucial time in the budget cycle.

“It requires not only the City of Cape Town but all municipalities to amend their methods of determining tariffs.

“The principle is straightforward: you only pay for what you use, nothing more.”

Meanwhile, AfriForum has pledged to ensure the proper enforcement of the court’s decision.

As per the ruling, this tariff model will be abolished effective 30 June 2026.