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Price hike on bulk raw water approved

Posted On Wednesday, 21 January 2004 02:00 Published by eProp Commercial Property News
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The water affairs and forestry department had approved an above-inflation tariff increase of 6,1% for the bulk raw water supplied out of the Vaal River, the ministry said yesterday.

Water affairsThe water affairs and forestry department had approved an above-inflation tariff increase of 6,1% for the bulk raw water supplied out of the Vaal River, the ministry said yesterday.

This means that large municipalities like Johannesburg, Tshwane, Ekurhuleni and Emfuleni which get their water supplies from Vaal River through bulk water supplier Rand Water will inevitably pass on the price increase to their domestic customers.

The 6,1% price increase, which will be charged to major users like Eskom, Rand Water, Sasol and commercial farmers, will be effective from April 1.

The basic charge for raw water use will be set at 150,7c/kl from the current level of 142,1c/kl. This excludes value added tax and other levies charged for water tests.

Raw water refers to unpurified water that is not suitable for human consumption. The water is normally used by large industrial, mining and farming organisations for cooling and irrigation purposes.

The bulk of the tariff increase will also offset the high costs of pumping and transferring water from Thukela River in KwaZuluNatal and the Lesotho Highlands to the Vaal River.

Water affairs and forestry department said: "This increase is mainly due to a provision for extra pumping cost that had to be made for transferring water from the Thukela to the Vaal catchment to provide sufficient backup storage in view of the drought conditions that will, according to expectations, prevail during 2004-05."

The department said the basic raw water charge consisted of a government portion amounting to 28,3c/kl, used currently to defray the development, operations and maintenance costs of the government schemes supplying part of the raw water in the Vaal River system, and a Trans-Caledon Tunnel Authority portion of 122,4c/kl, which is used to defray similar costs of the Lesotho Highlands Water Project infrastructure used to augment the Vaal River system.

Rand Water's spokeswoman Yolisa Tyantsi said the parastatal would "lessen the burden" of the price increase through its process of improving efficiencies.

 

Last modified on Tuesday, 05 November 2013 11:51

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