KZN SALGA alarmed by looming bulk water tariff hike
Municipalities that provide water are far less able to implement controls compared with services like electricity
THE SA Local Government Association (Salga) is concerned by national government’s approval of a more than 13% water tariff increase imposed upon municipalities.
This comes after the government approved the 2023/24 bulk water tariff increases applied for by Umgeni Water.
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Speaking to the ZO, KZN Salga Chairperson Thami Ntuli said the increase will exacerbate poverty and hunger among already suffering rural communities affected by stiff electricity prices.
“For municipalities to be able to afford this [increase], it will mean they must impose a higher tariff hike on their customers. The approval is a double whammy for KZN municipalities that have been at great pains to explain to the government and society that exorbitant increases lead only to water losses owing to an increase in illegal connections,” said Ntuli.
He said the granted increases for Umgeni Water will also affect customers serviced by Mhlathuze Water as the two utilities are in the process of being amalgamated into one provincial water board.
“Umgeni’s proposed bulk water tariff [increase] is unaffordable for municipalities, yet it has received ministerial and Parliamentary approval,” said Ntuli.
“A conflict of interest exists wherein a line function department or minister is the only authority approving prices for departmental agencies like a water board.
“The water sector is in dire need of an independent regulator. Salga is advocating for the establishment of [one] as a matter of urgency,” said Ntuli.
Municipalities that provide water are far less able to implement controls compared with services like electricity. Moreover, the nature of the service is such that it is inhumane to entirely shut off the water.
Ntuli further alluded that, while Salga members grapple with Eskom tariff increases, the organisation tried to influence Umgeni Water board members to refrain from applying for an increase above 3%.
“When this was unsuccessful, Salga requested national government refrain from approving the application for tariff increases. It was pointed out that, despite a zero per cent increase in the tariff for potable water in the previous financial year, Umgeni Water was able to record a profit of R1.22-billion.
“This shows how historically high increases placed the water board in a favourable financial position while its customers – the municipalities and citizens – continued to struggle,” said Ntuli.
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