City of Cape Town Must Return Tariff Over-Charges to Residents

GOOD Statement by Brett Herron, GOOD Secretary-General:

The GOOD Party is procuring legal advice on the appropriate next steps to force the City of Cape Town to comply with last week’s Western Cape High Court finding that its fixed tariff regime is unlawful – and return over-charges to residents.

While the court was clear on the unlawfulness of the City’s fixed cleaning, water, and sanitation tariffs, setting them aside prospectively from 30 June 2026, the consequence remains unresolved. A very significant amount of money was collected from residents under the unlawful regime over the past year.

By not dealing with this matter, the court left a live issue of unlawful enrichment on the table that must still be addressed.

GOOD notes Mayor Geordin Hill-Lewis and his administration’s suggestion that the City spend more public funds to appeal the Cape judgment. GOOD is therefore examining legal options, including a cross-appeal, a further application for just and equitable relief, or both.

GOOD is the only political party that took this matter beyond the Council chamber to court, at significant cost.

It did so because the unlawful tariff scheme targeted groups of people for extra payments they simply cannot afford, including those who have inherited property or whose property values have escalated exponentially due to gentrification or development.

If the Mayor were allowed to charge residents whatever he wishes, it would effectively force members of these groups to consider downgrading their accommodation – the diametric opposite of development.

Ratepayers must not be fooled by the Mayor’s framing of the court’s ruling as anti-poor. The fact is that the Mayor’s unlawful tariffs do no favours to struggling families and offer them no breaks. The municipal framework provides for progressive, consumption-based tariffs and targeted support for low-income households, which wouldn’t require the Mayor to resort to unlawful billing structures.

Ratepayers must also be clear that the City is not compelled to continue defending its unlawful position, though it has practically limitless ratepayer-funded legal resources at its disposal.

The obvious risk of appealing and continuing to apply the unlawful fixed charges into the next financial year, and possibly beyond, is that if the judgment is confirmed on appeal, the amount the City will owe the people of Cape Town will be substantially more.

Hill-Lewis’s suggestion that the only alternative to his unlawful tariff model is a flat charge for everyone is false. It is a political scare tactic, not a legal or policy reality.

Hill-Lewis is not a king, for whom the legality of his policies and practises is of no significance. Residents are entitled to honest billing, lawful tariffs, and accountability for charges already imposed on them — not political spin, ill-though-through over-charges, and manufactured crises.

* In addition to the Cape court’s ruling, the Gauteng High Court’s judgement in the matter between Cape Town and the electricity regulator, Nersa, is eagerly anticipated. Should the Gauteng court find Cape Town’s decision to charge tariffs above those set by the regulator unlawful, these over-charges, too, must be reimbursed to residents.

GOOD Social Cohesion: GOOD promotes social cohesion and unity among diverse communities.

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