Rand Water has raised concerns over its future sustainability after proposals for the 2020/21 water tariff increase were rejected.
The Portfolio Committee on Human Settlements, Water and Sanitation and the Portfolio Committee on Cooperative Governance and Traditional Affairs rejected a reconsidered presentation from the Department of Water and Sanitation and the South African Local Government Association.
The proposal suggested a 6.6% increase.
While both committees acknowledged that the bulk water tariff increases are required to ensure that water boards remain financially sustainable, they have also indicated that a holistic solution is required, Rand Water said in a statement on August 17.
“While mindful of the committees' concerns, Rand Water would like to emphasise that after adherence to all applicable legislation and after an extensive consultation process, its proposed tariff increase of 6.6% has the support of its municipal customers and stakeholders.”
Rand Water is now concerned at the significant future financial risk that it now faces, noting that it will need to reprioritise its planned projects in the short to medium terms.
“This will in turn also have an impact on all the municipalities serviced by Rand Water, it will also curtail Rand Water’s ability to finance necessary future bulk water infrastructure maintenance programmes, as well as other essential capital expenditure projects.
“This will have a significant impact in Gauteng and in parts of the three other provinces in which we work,” the water board said.