Water Services Act, 1997 (Act No. 108 of 1997)NoticesNorms and Standards for Tariff Setting, 2024 - effective 1 April 2026Norms and Standards in respect of Tariffs for Water Supply Services directly to consumers14. Procedure for setting tariffs |
The following procedure must be considered by a WSA or WSP prior to the finalisation and implementation of amendments to the annual water services tariffs levied to consumers.
| (1) | A retail WSP/WSA must estimate the revenue required to provide water supply services on a sustainable basis for each scheme or water supply area within the area of jurisdiction for a minimum period of five years (5) in accordance with regulation 15; |
| (2) | A WSP/WSA must estimate the future water consumption for the upcoming minimum five (5) years consecutive years for each scheme or whole water supply area within the area of jurisdiction and should also account for distribution losses and other factors of non-revenue water; |
| (3) | The WSP/WSA will propose a tariff structure that would provide the revenue required as determined in sub-regulation 14(1); |
| (4) | The WSP/WSA must consult with the consumers on its proposed tariffs and the at least five (5) year projected tariffs including the assumptions underlying the proposed and projected tariffs; |
| (5) | The WSP/WSA must complete the internal processes of tariff determination within the timelines as provided for in the MFMA; and |
| (6) | The tariffs must be submitted, on or before 15 April each year, to the Minister responsible for water and sanitation to monitor for the appropriateness of the tariffs in compliance with sections 10 and 62 of the Water Services Act, prior the implementation of the tariffs. |