Durban — The South African Local Government Association (Salga) in KwaZulu-Natal has expressed shock at the national government’s approval of an over 13% water tariff increase that municipalities will have to pay to water boards.
Salga KZN chairperson Thami Ntuli said the association is dismayed by the approved 2023/24 bulk water tariff increases granted by the government for Umgeni Water.
Ntuli said that while Salga members grapple with Eskom tariff increases, Salga tried to influence the Umgeni Water Board members to refrain from applying for an increase above 3%. When this was unsuccessful, Salga requested that the national government refrain from approving the application for tariff increases.
“It was pointed out that despite a zero percent increase in the tariff for potable water in the previous year (2021/2022 financial), Umgeni Water was able to record a profit of R1.22 billion. This showed how historically high increases had placed the water board in a favourable financial position while its customers, the municipalities, and citizens continued to struggle,” Ntuli said.
He said that Umgeni’s proposed bulk water tariff is unaffordable for municipalities, yet, it has not received ministerial and parliamentary approval.
“Salga repeats its call for an independent pricing regulator. 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 an independent regulator as a matter of urgency,” Ntuli said.
“For municipalities to be able to afford this tariff, 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 only lead to water losses due to increases in illegal connections.”
Ntuli added that municipalities that provide water are far less able to implement controls compared to services like electricity. Moreover, the nature of the service is such that it is often inhumane to go entirely shut off the water.
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