Umgeni Water’s ‘unrealistic’ tariff increases out of reach of North Coast consumers

Appeals by North Coast local water authorities for a reduction of Umgeni Water’s 9.6% increase would appear to have fallen on deaf ears.

Both Siza Water, which supplies the Dolphin Coast area, and Ilembe District Municipality, which supplies the rest of KwaDukuza, Ndwedwe and Maphumulo, asked the bulk water supplier to keep the annual increase to the minimum possible.

Siza Water managing director Shyam Misra told the Courier that Siza Water, along with all the other customers of Umgeni Water, had objected to the proposed increase.

“Bulk water represents one of the largest expenses for Siza Water, however our tariff formula also takes into account other major cost drivers being electricity, which has diluted the effect of the Umgeni tariff and hence we are proposing to increase our tariffs by 7%.”

Ilembe District Municipality will be passing on Umgeni’s 9.6% increase to its users without adding to it.

The increase was made in spite of district municipal manager Geoffrey Kumalo telling Umgeni Water that the community could not afford such an increase.

He warned of a possible backlash.

In his letter to Umgeni Water, he said: “With the current prevailing economic conditions in the country which have contributed to the high unemployment rate, the proposed tariff increase will still be contested by the communities within which we operate.

“As per national treasury guidelines, municipalities are encouraged to keep increases in rates, tariffs and other charges at levels that reflect an appropriate balance between the interests of the poor households, other customers and ensuring the financial sustainability of the municipality. Representation is hereby made to request a maximum increase of 5% to be passed on to iLembe District Municipality.”

In response to the letter, Umgeni Water said the increase was to recover operating costs, including the cost of maintaining existing assets and infrastructure.

Leader of the DA caucus in the district council, Madhun Sing, said the the tariff was neither realistic nor affordable.

“Ilembe in fact should work out a package to give all households and businesses relief in the form of a rebate. The CPI is 4.5% and any increase more than that will be pushing residents over the edge and collapse businesses that contribute to the revenue of the municipality. While Umgeni is imposing a 9.6% increase with the support of the water affairs department it is not reflecting the realities in the grounds of affordability.”

The DA said the cost of water losses had more than doubled from R83.36 million to R187.89 million from the previous year.

“Reservoir overflows and timely repairing of reported leaks and disconnecting illegal connections is not happening,”

Ilembe District municipality has provided a total of 41 water tankers to communities over the national lockdown.

However, a number of communities in the iLembe district still have not been able to receive water as a result of their topography.

District mayor Sduduzo Gumede said more than 40 water tanks had been delivered around the region to those in need during the Covid-19 pandemic and were being filled on a regular basis.

However some areas in Ndwedwe and Maphumulo have not had water deliveries as trucks are unable to access the area, especially on rainy days.

The SA Local Government Association (Salga) also rejected the proposed water tariff increases by all nine of the country’s water boards for 2020/21, with the exception of Rand Water.

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