The Ilembe district municipality has defended its 2014/2015 water tariff increase amid claims that the increase is not in line with legislation.
The district came under fire from irate consumers last week, who claimed the 10% tariff increase is unaffordable.
At a press briefing on Tuesday morning acting municipal manager Jeffrey Khumalo said the tariff had been finalised after several public participation meetings across the district.
District mayor Welcome Mdabe said the new cost-reflective tariff is definitely in line with National Treasury guidelines and regulations.
“We chose not to implement tariff increases on July 1, 2013, instead preparing ourselves for implementation on July 1, 2014. We looked at examples where 2013 cost-recovery tariffs had been implemented in neighbouring districts and negotiated with treasury for Ilembe. A compromise was needed, to meet our costs but still keep water affordable for our consumers.”
Mdabe said a district cost analysis put the estimated cost per kilolitre of water between R48 and R50, which the municipality believed was too expensive given the economic climate.
Chief financial officer Nosipho Mba explained that discussions between Treasury and Ilembe revealed that the district is under-recovering by 74%.
“In order to give effect to this, Ilembe introduced a further 17% increase to the tariff of charges, which is aimed at recovering costs of rendering the service of providing water to its communities.”
The restructured water and sanitation tariff takes Ilembe from six to three tariff tiers: 0-10kl costing around R8,81 and 11-30kl and 30kl and upwards costing around R12,59.
Sanitation charges are capped at 70% of the lowest tariff for all categories.
The district has also done away with its system of providing free basic water to all households, electing only to provide this service to registered indigent households.
A new sewer tariff charge, based on the valuation roll, was also introduced unique to each household.
“Paying for water must not become a burden to our consumers. This is why we engaged with the public before setting the increase down. The new tariff will hopefully encourage water conservation in residential areas.”
Mdabe said despite the increase Ilembe’s tariff is still the cheapest compared to neighbouring districts, which average R15 per kilolitre.
“Our main priority is to provide water, even though we face infrastructural challenges. The new tariff structure is quite simple: the more you use, the more you pay. The less you use, the less you pay.”
The water tariff increase effects the entire Ilembe district, except areas serviced by Sembcorp Siza Water (previously the Dolphin Coast municipality).
The detailed budget and tariff breakdown is available for inspection at the district head office in Mahatma Gandhi Street, Stanger.
You can also view it online at www.ilembe.gov.za, or contact 032-437 9300.
