Question NW16 to the Minister of Water and Sanitation

Reply:

Extortion and price gauging are regulated through South Africa's consumer laws which have been revised into two acts, The National Credit Act 34 (2005) and the Consumer Protection Act 68 (2008) are designed to protect consumers against the many abuses and practises such as overcharging, poor quality and overselling. The sale of water is regulated under these Acts and not directly by the Department of Water and Sanitation.

In addition, Section 8(1) of the Competition Act 89 (1998) prohibits a dominant firm from charging an excessive price to the detriment of customers or consumers, including items such as bottled water and tankers.

Cartels are explicitly prohibited under South African competition law. Competitors are not allowed to engage in collusive behaviour, including price fixing, bid rigging, market division, or any other concerted practices that substantially prevent, restrict, or distort competition.

It is not the role of the DWS to regulate and monitor the pricing of bottled water or water tankering service providers engaged by municipalities. It is the mandate of the DTI through the Competition Commission to regulate the pricing of bottled water and the costs for procuring water tankering through service providers.

The Competition Commission is the statutory body is SA that is empowered to investigate, control and evaluate restrictive business practises, abuse of power and mergers to achieve equity and efficiency in the SA Economy. The pricing of bottled water and determination of hourly rates for hiring of tankers is not part of the mandate of the department.

The department can only regulate standards for water quality of bottled water or water delivered to communities by water tankers.

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