It's more than fair.
Firstly it's a known fact that municipalities are over charging customers for electricity and making massive amounts of revenue in the process. One can pull up a dozen such articles with facts and figures with a simple Google search. Over charging for electricity impacts businesses trying to keep the lights on and is an economic destroyer.
Secondly what are the rates and taxes used for? I pay close to R3000 per month for rates yet my streetlights don't work (even though I report it), the road is falling apart, there are continual burst water pipes throughout the suburb and this is in one of the "better run municipalities". Where is the value for money? We are paying for cushy desk jobs for a bunch of politically connected thieves.
If I drill a borehole and use no municipal water there is still a basic sanitation service charge that is levied. Even if there wasn't a basic charge I'd still call it fair and a way to start clawing back some value for the money I pay.
We're paying Ouma rusk prices and not even getting cheapo checkers rusks in return. People are sick and tired of subsidising corruption, greed, incompetence and laziness.