The Constitutional Court has confirmed its judgement in the matter of the Minister of Water and Sanitation vs Sembcorp Siza Water, which is in favour of Umgeni’s set tariff increase.
The Constitutional Court (ConCourt) of South Africa, on Friday, 23 July 2021, made its judgement on the matter of Minister of Water and Sanitation vs Sembcorp Siza Water. The ConCourt confirmed that it has found the Minister of Water and Sanitation, Lindiwe Sisulu’s decision to approve the tariff increases set by Umgeni Water unlawful, but the tariff set by Umgeni was legal and rational.
The ConCourt found that both the High Court and the Supreme Court of Appeal had erred in their conclusions, as they did not apply the rationality test with reference to the decision to raise the tariff charged by Siza, or the procedure followed to reach such tariff. The ConCourt also found that no level of unfair discrimination was projected towards Siza Water, and that there was no provision in the Water Services Act 108 of 1997 that made it mandatory for the minister to approve a tariff; however, Umgeni was empowered to set and enforce tariffs.
The court further stated that it views the minister’s decision as illegal, but the tariff set by Umgeni was legal and rational. The ConCourt confirmed that an appeal by the minister was dismissed, while Umgeni’s was upheld.
See the post below.
Judgment: The Minister of Water and Sanitation’s decision to approve the tariff increases set by Umgeni Water was unlawful, but the tariff set by Umgeni was legal and rational. (Minister of Water and Sanitation v Sembcorp Siza Water (Pty) Limited and Another) pic.twitter.com/c35VSSatCw
— Constitutional Court (@ConCourtSA) July 23, 2021
