Rand Water raises concerns on its future sustainability
JOBURG – Rand Water has raised concerns for its future sustainability after a joint meeting of committees rejects proposals for 2020/21 tariff increase.
Rand Water has raised concerns on its future sustainability. 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 (CoGTA) 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.
According to Rand Water, both committees acknowledge that the bulk water tariff increases are required to ensure that water boards remain financially sustainable. They have also indicated that a ‘holistic’ solution is required. “Whilst mindful of the committee’s concerns, Rand Water would like to emphasise that after
adherence to all applicable legislation and after an extensive consultation process, it’s proposed tariff increase of 6.6 per cent has the support of its municipal customers and stakeholders,” said Rand Water in a statement on 17 August.
“Rand Water also fully understands the importance of engaging the committees on its consultation process with its customers and stakeholders on determining its tariff increase, and then advising them on the various factors that went into that process.”
Previously, at a seating of the Joint Portfolio Committee for Water and Sanitation on 2 June, 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 now presents, Rand Water is now concerned about the significant future financial risk that it now faces. The utility will now have to reprioritise its planned projects on the short to medium terms.
According to Rand Water, this will in turn also have an impact on all the municipalities serviced by Rand Water, it will also curtail Rand Water’s ability to finance necessary future bulk water infrastructure maintenance programmes, as well as other essential Capex (capital expenditure) projects. “This will have a significant impact in Gauteng and parts of the three other provinces in which we work,” Rand Water concluded.
