Cape Town’s New Water & Sewerage Tariff

Cape Town’s New Water & Sewerage Tariff

1. What’s Changed—Fixed Charges on Top of Usage Charges

From 1 July 2025, the City of Cape Town has introduced fixed monthly charges for both water and sanitation.

• These charges are linked to the municipal valuation of each property, not to usage or pipe size.
• Importantly, these fixed charges are added on top of the usual consumption-based tariffs, meaning property owners now pay a base fee regardless of how much water is used plus usage charges for actual consumption.

2. Additional Fixed Charges Introduced

• A city-wide cleaning tariff (also property value–linked) is now listed separately on bills.
• A fixed sanitation fee supports sewer infrastructure upgrades and ongoing operations.

3. Why the City Made These Changes

The City says this new structure ensures more sustainable funding for critical infrastructure. Over the next three years it plans to invest around R40 billion in service delivery, with R5 billion earmarked for water and sanitation projects.

4. Concrete Examples of the Impacts

• For a property worth R4.2 million, estimated monthly charges (incl. VAT):
• • Cleaning tariff: R477
  • Sanitation fixed fee: R157
• Altogether, this can add R900+ per month to higher-valued property bills.

5. City Adjustments and Relief Measures

• Properties valued up to R2.5 million qualify for reduced fixed charges (up from the earlier R1m threshold).
• Pensioner rebate income limits were raised from R22,000 to R27,000/month.

6. Legal Challenge and Backlash

• The South African Property Owners Association (SAPOA) is challenging the new tariffs in the High Court, arguing they are unlawful.
• Despite more than 1,100 public objections, Council approved the budget with only minor revisions

7. Bottom Line for Property Owners

• Expect three new fixed charges (water, sanitation, cleaning) in addition to consumption-based charges.
• Higher-value properties will feel the biggest increases.
• Relief is available for lower-value homes and qualifying pensioners.
• Legal outcomes could still reshape the tariffs in future.