Water Services Act, 1997 (Act No. 108 of 1997)Chapter II : Standards and Tariffs10. Norms and standards for tariffs |
| (1) | The Minister may, with the concurrence of the Minister of Finance, from time to time prescribe norms and standards in respect of tariffs for water services. |
| (2) | These norms and standards may— |
| (a) | differentiate on an equitable basis between— |
| (i) | different users of water services; |
| (ii) | different types of water services; and |
| (iii) | different geographic areas, taking into account, among other factors, the socio-economic and physical attributes of each area; |
| (b) | place limitations on surplus or profit; |
| (c) | place limitations on the use of income generated by the recovery of charges; and |
| (d) | provide for tariffs to be used to promote or achieve water conservation. |
| (3) | In prescribing the norms and standards, the Minister must consider, among other factors— |
| (a) | any national standards prescribed by him or her; |
| (b) | social equity; |
| (c) | the financial sustainability of the water services in the geographic area in question; |
| (d) | the recovery of costs reasonably associated with providing the water services; |
| (e) | the redemption period of any loans for the provision of water services; |
| (f) | the need for a return on capital invested for the provision of water services; and |
| (g) | the need to provide for drought and excess water availability. |
| (4) | No water services institution may use a tariff which is substantially different from any prescribed norms and standards. |