What the new water tariff rules mean for South Africans and their bills

Government is changing the framework municipalities use to set water tariffs and manage water services, but what does that actually mean for households?

The Department of Water and Sanitation (DWS) announced that it is rolling out new guidelines aimed at helping municipalities manage their water services, finances and tariffs more effectively.

For ordinary South Africans, the biggest potential impact is on how municipalities work out what residents pay for water.

Your water bill is not automatically going up

Fortunately, the new framework does not announce a nationwide water tariff increase.

Instead, it gives municipalities clearer rules for preparing their tariff proposals. These proposals must take into account factors such as the cost of supplying water, how much money is needed to run the service and whether tariffs are affordable.

Individual municipalities will still have to submit and follow the relevant approval processes for their tariffs.

So, if you are wondering whether this means your water bill will immediately become more expensive, there is no blanket increase announced as part of these changes.

What will the new water tariff framework actually involve?

The new framework is intended to make municipalities more structured in explaining how they arrive at their proposed water tariffs.

This includes information about the cost of supplying water, expected revenue and the proposed tariff structure. Municipalities will also have to consider consultation with residents and other stakeholders.

In practical terms, this should give residents more information about why their municipality is proposing a particular water tariff.

The DWS is also introducing a new system for assessing how well water service authorities are performing.

It will look at issues including whether municipalities are financially sustainable, how they manage revenue, how they plan water services and how effectively they deliver those services.

Water conservation and managing demand will also form part of the assessment.

Why does this matter to you?

The changes are not just about the number on your water bill.

How well a municipality manages its water network can affect whether residents experience reliable supply, how much water is lost through the system and whether the municipality has enough money to maintain its infrastructure.

The new performance system is intended to give the DWS a clearer picture of how municipalities are performing and where problems need to be addressed.

The DWS will also use feedback from municipalities during the rollout to identify implementation problems and improve the final guidelines.