Question NW2823 to the Minister of Human Settlements, Water and Sanitation

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27 November 2020 - NW2823

Mohlala, Mr M to ask the Minister of Human Settlements, Water and Sanitation

What measures has her department taken to assist (a) water boards and (b) municipalities to continue to supply clean and reliable drinking water to the residents with the tariff increase of 11,5% by her department?

Reply:

(a) There has been no increase (0%) on the Bulk Water Charges imposed on all Water Boards for the 2020/21 financial year. The Department of Water and Sanitation (DWS) has also committed R600m in relief funds that will be distributed to cash strapped Water Boards. These funds will also go some way in helping the Water Boards to absorb the increase in raw water charges.

(b) Significant concessions have been given to the Domestic and Industry Sector with regards to Raw Water Use Charges. In terms of Water Resource Management Charges (WRMC), if the charges had been approved in line with the policy (Raw Water Pricing Strategy), the charges would have been increased by a maximum of fifty-six percent (56%). In terms of Water Resource Infrastructure Charges (WRIC), a maximum increase of 16.5% would also have been approved. The Capital Unit Charge (CUC) which is the charged levied on users that take water from schemes that are funded off-budget has not been increased for the 2020/21 financial year. The zero percent (0%) increase has been imposed on those schemes that supply water to domestic users.

It is important to note that all these concessions have had a negative impact on the performance of the Department of Water and Sanitation (DWS) in relation to water resource management functions, water resource infrastructure development and maintenance. The DWS provides assistance to the municipalities through the Regional Bulk Infrastructure Grant (RBIG) and the Municipal Water Infrastructure Grant (MWIG) for the development of new infrastructure and refurbishment thereof to ensure provision of clean Water.

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