Residents of the Lesedi Local Municipality may experience water supply challenges after Rand Water announced a 20% reduction in bulk potable water supply to the municipality due to outstanding debt exceeding R27.7m.

In a media statement, Rand Water said the decision follows months of engagement with the municipality regarding unpaid accounts and repeated failures to meet agreed payment obligations.

According to Rand Water, Lesedi Local Municipality currently owes the bulk water supplier R27 710 000.

The utility said the municipality had failed to honour several scheduled payments despite numerous attempts to resolve the matter.

Rand Water formally notified the municipality on April 14 of its intention to reduce the bulk water supply.

The notice provided the municipality with 30 days to respond, make representations and prepare residents for the potential impact of the restriction.

The utility said the notice was intended to explain the reasons for the proposed reduction, remind the municipality of its legislative and contractual obligations, provide sufficient time for alternative arrangements if necessary, and allow the municipality an opportunity to make submissions before the restriction was implemented.

Following the notification, Lesedi Local Municipality reportedly requested Rand Water to reconsider the reduction.

However, Rand Water stated that the municipality failed to make the required payments towards its outstanding Debt Settlement Agreement (DSA) instalments.

As a result, Rand Water implemented the 20% reduction in bulk potable water supply on June 17, after the parties were unable to reach what the utility described as an amicable solution.

Rand Water said the measure was necessary to prevent further escalation of the municipality’s debt, which it said had accumulated due to non-compliance with the signed Bulk Water Supply Contract. The utility added that, despite holding several DSA meetings with municipal representatives, no meaningful progress had been made in settling the outstanding debt.

The water supplier warned that the continued non-payment poses a serious threat to its financial sustainability.

Rand Water emphasised that it operates without direct financial support from the national fiscus and relies primarily on revenue collected from municipalities and other customers to maintain operations and fulfil its legal obligations.

The utility reiterated its commitment to providing reliable bulk water services while stressing that all customers have a responsibility to pay for services rendered.

The reduction is expected to place additional pressure on water supply within Lesedi.

A comment is awaited from the municipality.

ALSO READ: Water monitoring and conservation testing underway in Lesedi until end of June