Supplying water is a costly business

Sir,
I wish to respond to the letter submitted by Brian (Courier dated October 24) and to the author of the letter (Courier dated October 28) in respect of the “free water”.
In preparing the budget on water and sanitation provision, Council looked at the sustainability of the service that Council was providing to its customers.
Among others it became evident that our tariffs were not cost reflective in the previous years. The service that the Municipality was providing was running at a loss and repairs and maintenance of infrastructure was not sufficiently covered by those tariffs.
The current tariffs approved by Council are cost reflective with a stepped increase of 10% to ensure that repairs and maintenance of the infrastructure is implemented. In the past, the 6kl “free water” was enjoyed by all the residents.
However, this benefit was meant to be enjoyed only by those who are categorised as indigent. The Department of Water and Sanitation expressed concerns that the “free basic water” was also provided to residents other than indigent. Therefore, as from July 1, the “free” 6kl of water was restricted to those who are registered with the Local Municipalities as indigent customers.
In the past, i.e. before and including 2012/2013, the District Municipality was buying “raw water” at R2.66 per Kl and selling at R1.95 per Kl, resulting in a loss of R0.69 per Kl.
Currently the Umzinyathi District Municipality breaks even i.e. buying and selling raw water at the rate of R2.66 per Kl. For the sake of clarity, “raw water” is water which is not purified and the main customers are farmers and large manufacturing companies. In the past, i.e. before and including 2012/2013, the District Municipality was buying potable and purified water for human consumption at R3.31 per Kl and selling at R5,20 per Kl excl. VAT. Currently the Umzinyathi District Municipality is buying potable and purified water for human consumption at R3,31 per Kl from Uthukela Water (Pty) Ltd’s Biggarsberg Plant and selling at R6,04 per Kl.
Since 2013 Umzinyathi District Municipality has taken over the responsibility and management of water supply from Uthukela Water (Pty) Ltd. In addition to covering the cost of licences and legislative requirements, the profits are used to cover the following costs: repairs and maintenance of infrastructure; salaries and other related costs; replacement of meters; replacement of burst pipes; electricity; chemicals; laboratory fees.

These costs are incurred and paid for on a monthly basis. Failure to do so will result in residents not being provided with potable purified water.
“Indigent” means any household which qualifies for “free” basic services, earning a combined gross income equivalent to or less than two times the Government pension grant as prescribed by the National Department of Social Development or in line with the National Indigence Framework issued by the Department of Local Government, who qualify according to the policy, for rebates/remissions, support or a service subsidy. Examples hereof include pensioners, the unemployed and child-headed families who are unable to fully meet their payment obligations for municipal services.
If any household falls within this category it must apply to its Local Municipality who have a register of “indigent” householders which is updated as financial circumstances change. This register is made available to the Umzinyathi District Municipality.
Dr I Bedassi
Councillor – Umzinyathi District