Tom Clarkson of Ballito writes:

Your article “Siza Water celebrates major milestone” (Courier, August 23) refers.

In November 1995, I paid North Coast Water R58,67 for 21 kl. That is R2.20 per kl. When Siza took over in 1999, I paid R144,82 for 24kl.

That is R6.03 per kl, an increase of three times in four years. My last bill, after these celebrated 20 years, is R1079.88 for 25kl.

That is R43.20 per kl. Sure, there is inflation – 7% compounded over the celebrated 20 years would multiply the initial R144,88 by 4.04 to R585.32.

The current cost is almost twice as much as can be explained by inflation.

Also, going through my papers, there were some “special” price increases granted because the projected growth in Ballito had not materialised.

That is not the case now and I doubt that there will be a request for a “special” reduction. More frustrating is that there is little that the ordinary person in Ballito can do.

Siza has deviously loaded the charges on to the basic water and sewer charges, so that, without using a drop of water the charge is still R500 per month.

The 10kl “free water” is meaningless, because Siza has loaded the charges on to the sewer charge which is more expensive and does not get the 10kl “free”.

Sorry I can’t share your enthusiasm for Siza.

Siza Water managing director Shyam Misra replies:

Attached is the increasing consumption trend for Mr Clarkson (It is too lengthy to include here, but in summary, consumption increased from 12kl in July 2012 to 25kl this July – Editor).

What is evident from the attached is that the consumption trend has increased, especially in the past seven months and this will contribute to the higher account and hence a comparison to the historical account is not relevant as the consumption is different.

The calculation of the tariff is driven by a formula as per the concession contract with Ilembe District Municipality.

Over the past years the cost of electricity and bulk water have escalated beyond inflation and as these costs are material for the tariff, and uncontrollable by us, have resulted in tariffs higher than inflation.

Just as an example, the bulk water tariff escalated by an effective rate of 18% with effect from 1 July and whilst we implemented a tariff below 10% we are considerate of the needs of consumers to cushion this impact by optimising our operations and seeking ways to subsidise these spiralling costs.

We also do comparatives of our tariffs to other service providers and this reveals that we are in line if not cheaper.

We welcome Mr Clarkson to engage with our customer services team to assist further with this query.