National Water Act, 1998 (Act No. 36 of 1998)Chapter 5 : Financial ProvisionsPart 1 : Water use charges56. Pricing strategy for water use charges |
| (1) | The Minister may, with the concurrence of the Ministry of Finance, from time to time by notice in the Gazette, establish a pricing strategy for charges for any water use within the framework of existing relevant government policy. |
| (2) | The pricing strategy may contain a strategy for setting water use charges— |
| (a) | for funding water resource management, including the related costs of— |
| (i) | gathering information; |
| (ii) | monitoring water resources and their use; |
| (iii) | controlling water resources; |
| (iv) | water resource protection, including the discharge of waste and the protection of the Reserve; and |
| (v) | water conservation; |
| (b) | for funding water resource development and use of waterworks, including-- |
| (i) | the costs of investigation and planning; |
| (ii) | the costs of design and construction; |
| (iii) | pre-financing of development; |
| (iv) | the costs of operation and maintenance of waterworks; |
| (v) | a return on assets; and |
| (vi) | the costs of water distribution; and |
| (c) | for achieving the equitable and efficient allocation of water. |
| (3) | The pricing strategy may— |
| (a) | differentiate on an equitable basis between— |
| (i) | different types of geographic areas; |
| (ii) | different categories of water use; and |
| (iii) | different water users; |
| (b) | provide for charges to be paid by either-- |
| (i) | an appropriate water management institution; or |
| (ii) | consumers directly; |
| (c) | provide for the basis of establishing charges; |
| (d) | provide for a rebate for water returned to a water resource; and |
| (e) | provide on an equitable basis for some elements of the charges to be waived in respect of specific users for a specified period of time. |
| (4) | The pricing strategy may differentiate under subsection (3)(a)— |
| (a) | in respect of different geographic areas, on the basis of— |
| (i) | socio-economic aspects within the area in question; |
| (ii) | the physical attributes of each area; and |
| (iii) | the demographic attributes of each area; |
| (b) | in respect of different types of water uses, on the basis of— |
| (i) | the manner in which the water is taken, supplied, discharged or disposed of; |
| (ii) | whether the use is consumptive or non-consumptive; |
| (iii) | the assurance and reliability of supply and water quality; |
| (iv) | the effect of return flows on a water resource; |
| (v) | the extent of the benefit to be derived from the development of a new water resource; |
| (vi) | the class and resource quality objectives of the water resource in question; and |
| (vii) | the required quality of the water to be used; and |
| (c) | in respect of different water users, on the basis of— |
| (i) | the extent of their water use; |
| (ii) | the quantity of water returned by them to a water resource; |
| (iii) | their economic circumstances; and |
| (iv) | the statistical probability of the supply of water to them. |
| (5) | The pricing strategy may provide for a differential rate for waste discharges, taking into account— |
| (a) | the characteristics of the waste discharged; |
| (b) | the amount and quality of the waste discharged; |
| (c) | the nature and extent of the impact on a water resource caused by the waste discharged; |
| (d) | the extent of permitted deviation from prescribed waste standards or management practices; and |
| (e) | the required extent and nature of monitoring the water use. |
| (6) | In setting a pricing strategy for water use charges, the Minister— |
| (a) | must consider the class and resource quality objectives for different water resources; |
| (b) | may consider incentives and disincentives— |
| (i) | to promote the efficient use and beneficial use of water; |
| (ii) | to reduce detrimental impacts on water resources; and |
| (iii) | to prevent the waste of water; and |
| (c) | must consider measures necessary to support the establishment of tariffs by water services authorities in terms of section 10 of the Water Services Act, 1997 (Act No. 108 of 1997), and the use of lifeline tariffs and progressive block tariffs. |
| (7) | Before setting a pricing strategy for water use charges under subsection (1), the Minister must— |
| (a) | publish a notice in the Gazette— |
| (i) | setting out the proposed pricing strategy; and |
| (ii) | inviting written comments to be submitted on the proposed strategy, specifying an address to which and a date before which the comments are to be submitted, which date may not be earlier than 90 days after publication of the notice; |
| (b) | consider what further steps, if any, are appropriate to bring the contents of the notice to the attention of interested persons, and take those steps which the Minister considers to be appropriate; and |
| (c) | consider all comments received on or before the date specified in the notice. |