Water boards apply for price increases

Posted by: Saving Water SA (Cape Town, South Africa) – partnered with Water Rhapsody conservation systems – 08 April 2010

The South African Local Government Association (Salga) has been formally notified of NERSA’s approval of a 28.9% tariff increase. This will be a rate at which municipalities will purchase bulk electricity from Eskom. This is higher than the rate at which other non-municipal users will buy from Eskom. Non-municipal bulk purchases will purchase at 23.5% and 18.7%.

Adding to this dire state of affairs for municipalities, the water boards have also applied for significant price increase, averaging at 16.84% (for bulk water sold to municipalities).

This is happening in a municipal operating environment which is not favourable to big rates and service charges increases, given the recent economic recession, rising unemployment.

Currently a majority of Water Service Authorities operate their water distribution businesses at a deficit and will therefore not afford to pay hugely increased bulk water tariffs.

Salga appeals to the Minister of Water Affairs to carefully scrutinize the proposed tariff increases by water boards and the factors that drive such proposed increases before deciding on whether to grant them or not.

Extract from article: ‘Your municipal bill is set to rocket’ – jacaranda.fm

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