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 Bulk Water Services6. Procedure for setting tariffs |
The following procedure must be considered by a bulk WSP prior to the finalisation and implementation of amendments to the annual bulk water services tariffs levied to its customers:
| (1) | A WSP must determine the full costs of providing bulk water supply services on a sustainable basis for each bulk water scheme or water supply area within its area of operation on the bases of the current and projected future demands for a minimum period of five (5) years in order to provide guidance on multi-year tariff projections; |
| (2) | The WSP must estimate the current period and future water consumption for each scheme or bulk water supply area within its area of supply in cooperation with the customers and should also account for distribution losses and other factors of non-revenue water; |
| (3) | The WSP must estimate the unit cost of supplying water for each bulk water scheme or water supply area within its area of supply for the entire projection period; |
| (4) | The WSP has to determine the entity's revenue requirements in accordance with regulation 7; |
| (5) | The WSP must propose a tariff structure that would provide the revenue determined in sub-regulation 6(4); |
| (6) | The proposed tariff structure may provide for any reasonable cross-subsidization which may be applicable within the entity's area of supply and must be disclosed where applicable; |
| (7) | The WSP must consult with its customer WSAs and all other bulk water customers on each of the proposed bulk water tariffs together with all the under1ying assumptions that it used as the bases to determine the proposed tariffs in accordance with regulation 12; |
| (8) | The WSP must subsequent to the consultations make submissions to SALGA and NT with details as contemplated under section 42(3)(b) of MFMA which pertain to the proposed tariffs including the consultations with the customers in accordance with regulation 12; and |
| (9) | The submissions described in sub-regulations 6(8), together with proposals on how any written comments received from water services authorities, SALGA, NT or other relevant stakeholders were taken into account must be submitted to the Department responsible for water and sanitation for consideration and approval within the timelines in accordance with regulation 12. |