Setting the record straight
THERE are a number of inaccuracies regarding tariffs in general appearing in news articles and through public comments.
Some allege the average water tariff increase is 500%. The average tariff increase for the first step of the tariff (where most consumers should be under Level 6 water restrictions) has actually been R2.65 per kilolitre, reflecting a 10.1% increase.
Tariff steps will be reduced when the National Department of Water and Sanitation relaxes restriction levels. If the restriction levels are reduced, individual water use is expected to increase as the tariff decreases, ensuring the City receives the same total income for the repair and maintenance of infrastructure.
Others are claiming that vulnerable residents are no longer protected. However, this is incorrect. Out of approximately 1.1 million households in Cape Town, water is provided at no charge to just over 40% of households.
Furthermore, it has been reported that the City did not spend R1.6 billion of its water and sanitation budget in the 2017/18 financial year. Not made clear in the reports is that this budget allocation mostly comprises money available for the extreme emergency Cape Town was facing.
As a result of the commitment of Cape Town’s residents to save water, this money did not have to be spent on a Day Zero scenario or on additional emergency augmentation schemes. It is thus a positive outcome. It has not been lost either, as it comprised mostly internal and external loan funding that was not taken up. The City actually achieved its highest spend ever on water and sanitation (R1.7bn).
Lastly, reports that the City has “over-recovered” more than R1bn in water and sanitation income and yet is still charging high tariffs are false. This amount refers to billed revenue, not actual income received. Currently, due to the lower income resulting from the water restrictions, the rates account is covering part of the cost of water and sanitation provision.
This drought has been a once in a 311-year occurrence. We should not take lightly what this City and its residents have managed to do to get through it, but the effects of this extreme crisis will not disappear overnight.