Lobby group AfriForum is seeking clarity on the legality of the Cape Town Metro’s new tariff model for water, sanitation and electricity, in the 2025/2026 budget, with an application filed in the High Court in Cape Town on Monday.

AfriForum emphasised the need for tariffs to be “reasonable and fair” stating that consumers must pay a “direct reflection” of the actual cost of provision and not based on property value.

The City of Cape Town implemented new tariff structures for water, sanitation and electricity, which AfriForum warned are in breach of municipal legislation and the Constitution.

The organisation pointed out that the new tariff strategy is part of a larger multi-year plan and that some of the Metro’s policy frameworks will likely need to be adjusted.

AfriForum said the use of property valuations as the basis for water and sanitation tariffs, as well as the restructuring of the Metro’s electricity tariffs without the necessary cost study, poses a serious disadvantage for homeowners.

AfriForum local government affairs manager Morné Mostert acknowledged that the Cape Town Metro delivers “world-class services” to residents and that the Metro has also shown great transparency by making cost studies fully available.

“We do not doubt the Metro’s commitment to good service delivery. It is important that municipal management thinks innovatively and investigates new models. However, the current model is not in line with the legislation, therefore, we ask that the court interpret the law clearly so that there is certainty about the way forward,” Mostert said.

AfriForum wants the court to declare that the Cape Town Metro may not link any other levy or fee to property valuations other than that prescribed in the Local Government: Municipal Property Rates Act.

The organisation wants the court to declare that the three tariffs are contrary to the Constitution and the principle of legality, as they are based on property valuations; and to suspend the declaration of unconstitutionality until June 30, 2026 – the end of the current financial year.

“AfriForum will ensure that the law is respected and that residents in the Cape Town Metro are protected by ensuring that tariffs are determined fairly and legally. For us, this is about fairness, transparency and the protection of taxpayers’ interests,” said Mostert.