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 Sanitation Services supplied directly to consumers24. Revenue requirements for provision of sanitation services |
| (1) | A WSA must set its sanitation tariffs so that its revenue, inclusive of all account transfers and grants allocated to sanitation services, is sufficient to recover;— |
| (a) | all reasonable costs directly and indirectly associated with the operations, maintenance, refurbishment and development of sanitation services, sanitation services customer care and all costs associated therewith; |
| (b) | payments required to redeem its sanitation services related loans over a reasonable period; and |
| (c) | a net surplus on revenue that is justifiable and material to ensure that the institution is sustainable. |
| (2) | Reasonable costs referred to in sub-regulation 24(1)(a) include: |
| (a) | Employee related costs; |
| (b) | Depreciation; |
| (c) | Finance charges; |
| (d) | Other expenditure; |
| (e) | Indirect costs allocated to the sanitation services function by the WSA; |
| (f) | Chemicals; |
| (g) | Energy; and |
| (h) | Maintenance. |
| (3) | A WSA/WSP must determine estimates of the reasonable costs referred to in sub-regulations 24(1)(a) and 24(2) over a period of at least five (5) years to provide guidance on multi-year tariff projections. |
| (4) | A WSA/WSP must, when estimating the amount to be recovered by tariffs, use a format consistent with the format in the table provided in Annexure D. |