This is after a joint meeting of the portfolio committee on human settlements, water and sanitation and the portfolio committee on cooperative governance and traditional affairs rejected a reconsidered presentation from the Department of Water and Sanitation and the South African Local Government Association (SALGA) on proposals for the 2020/21 water tariff increase.
Both committees acknowledge the bulk water tariff increases are required to ensure water boards remain financially sustainable, but they have also indicated that a “holistic” solution is required.
Justice Mohale, Rand Water spokesperson, said while mindful of the committee’s concerns, Rand Water emphasised after adherence to all applicable legislation and after an extensive consultation process, its proposed tariff increase of 6.6 per cent has the support of its municipal customers and stakeholders.
He said Rand Water also understands the importance of engaging committees on its consultation process with its customers and stakeholders on determining its tariff increase, and advising them on the various factors that went into that process.
“At a seating of the Joint Portfolio Committee for Water and Sanitation on June 2, SALGA supported Rand Water’s proposed tariff increase of 6.6 per cent and rejected higher proposed increases made by other water boards.”
However, with the uncertainty that this matter presents, Rand Water is now concerned about the significant future financial risk it now faces. The utility will now have to reprioritise its planned projects on the short- to medium-terms.”
This will in turn also have an impact on all the municipalities serviced by Rand Water and will also curtail Rand Water’s ability to finance necessary future bulk water infrastructure maintenance programmes, as well as other essential Capex projects.
“This will have a significant impact in Gauteng and in parts of the three other provinces in which we work,” he said.
