DWS consults on raw water pricing strategy
The Department of Water and Sanitation (DWS) recently held consultations with various waters users in the country as per the requirements of the NWA’s legislative process on the proposed raw water use charges for the 2021/22 financial year.
In terms of the National Water Act of 1998, the department is required to establish an annual raw water pricing strategy after consulting widely with different water users that include mines, industries, agriculture, energy and domestic users. Consultations were done through virtual meetings, physical meetings and emails.
In terms of the capital unit charge, tariffs will be set to ensure that the debt is fully paid by the end-user within a reasonable time period (not longer than the life of the asset), after considering affordability and future augmentation of the scheme. It is also envisaged that the debt will not overlap unreasonably to another project thus causing financial strain on that project. The capital unit charges may be phased in during the construction period and interest will generally not be capitalized after completion of the construction.
The proposed raw water charges for water resource infrastructure in domestic and industrial use envisage an annual increase limited to PPI (April 1,2%) plus 10% up until the target for development charge is achieved on Government Water Systems. Tariff increases range from 0% to 11,2% in agriculture irrigation charges; the depreciation charge will be capped at 1.5c per cubic metres at PPI (April 1,2 %). Operation and maintenance cost increases will be limited to 50% a year.
The final decision on raw water tariff increases will be taken by the Minister once all inputs have been considered.
For more information, contact:
Sputnik Ratau
Spokesperson for the Department of Water and Sanitation
082 874 2942
