Umgeni takes water fight to Concourt

Despite a high court ruling preventing Umgeni Water from charging Siza Water higher water tariffs than its municipal customers, the state-owned enterprise has vowed to take its fight to the Constitutional Court.

Umgeni Water, which provides water services to Durban and Pietermaritzburg municipalities, is one of the country’s largest water boards and the largest supplier of bulk water in KwaZulu-Natal.

In January 1999, Siza Water became the first private company to manage a water and wastewater utility in South Africa.

Under a groundbreaking 30-year concession contract, Siza assumed responsibility for providing water and sanitation services to what was then known as the Borough of Dolphin Coast within the iLembe District Municipality.

Siza’s demarcated area includes Ballito, Chaka’s Rock, Umhlali, Shakaskraal, Etete, Nkobongo, Shaka’s Head, Tinley Manor and Sheffield Beach.

Outside the concession area, iLembe performs the function of a water service provider.

Siza buys its water from Umgeni Water at tariffs determined by Umgeni Water and approved by the minister of water affairs, and distributes this water to end users within the concession area.

Should Siza’s function come to an end the service would become the responsibility of Ilembe District Municipality.

In terms of the Local Government Municipal Systems Act, iLembe district municipality remains responsible for ensuring that the service is provided. Ilembe receives its bulk water supply from Umgeni Water at R5.41 per kilolitre, as opposed to R6.98 per kilolitre that Umgeni Water wants to charge Siza.

Umgeni Water spokesperson Shami Harichunder said the water utility had already begun the process for the matter to be heard in the Constitutional Court and the papers had been served.

“Umgeni Water deliberated at length before a decision was taken to refer the matter to the Constitutional Court,” said Harichunder.

Siza Water managing director Shyam Misra said the 37.9 percent tariff increase imposed by Umgeni Water on Siza had not been passed to their consumers.

“We were aware that this was unjust and sought to seek relief from the courts. The High Court as well as the Supreme Court of Appeal overturned the decision of Umgeni Water and ordered them to charge us the same tariff (7.8 percent) as the other municipalities,” said Misra.

Misra said the company felt that the higher tariff was unfair as the increases only applied to Siza and no other water service authorities despite both performing a municipal function.

“We await the decision of the Constitutional Court to hear this matter.”

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