SANDILE MOTHA
HEAVY burdened households have been thrown a lifeline after the joint portfolio committees on Cooperative Governance and Traditional Affairs and that of Human Settlements, Water and Sanitation rejected the proposed increase of water tariff for the 2020/21 financial year.
This week the South African Local Government Association (SALGA) and the department of Water and Sanitation asked parliament to be given the nod to hike water tariffs.
However, the MPs slated the move on the grounds of unaffordability.
The MPs also took issue with the failure of water boards to consult communities when deciding to increase the tariffs.
Faith Muthambi, chairperson of the portfolio committee on Cogta said granting the adjustments will severely strain households.
“The undeniable fact is that Covid-19 has had a negative impact on the ability of households to pay for services. A further increase in tariffs will cause far-reaching damage both to households and municipalities. This is the reason the committee view it as a necessary step to revise the tariffs downwards,” lamented Muthambi.
During the sitting which was held virtually, the department of Water affairs also told MPs that plans were at an advance stage to initiate the process of establishing a regulatory mechanism for the water sector.
According to MPs, this will insulate the department against being both the referee and a player in the tariff determining process.
The joint committees also conceded the implication of their stance will have on municipal budgets, saying municipalities should undergo a budget adjustment process.
Hlengiwe Mkhaliphi, Economic Freedom Fighters MP and member of the portfolio committee on Cogta said it was the view of his party that the plans to establish a single body to serve as a water regulator should be fast tracked.
“As it stands, water continues to be an expensive commodity only affordable by the rich. Poor communities cannot afford water and they will be further disadvantaged by the exorbitant tariffs proposed by the water boards,” she said.
She added that the establishment of the independent body similar to the National Energy Regulator of South Africa will ensure that there is a coherent way of doing things.
“This will also minimise the power that water boards have on determining their own tariffs because no one knows what formula they use to arrive at the increment,” added Mkhaliphi.
Inside Metros understands that Magalies Water board had asked for 12% increment, the highest when compared to other water boards.
The department of Water Affairs had advocated for a 9.9% across the board increase but was rejected.
Umngeni Water requested a 9.6%, Overberg Water – 8%, Sedibeng – 7.5%, Mhlathuze Water – 9.37%, Lepelle Northern Water – 8.5%, Amatola Water – 8.28% and Bloem Water – 9 %.
Under the current dispensation, all the nine water boards in the country unilaterally make their own decisions pertaining to water tariff increment.
(COMPILED BY INSIDE METROS STAFF)