C u r r e n t  P r e s s, 2000-06-02

Rand Water tariff increase below inflation yet again

THE price of water is to go up by 6.5% from July 1, Rand Water announced today. However, the rate of increase has been kept below current inflation levels for the third year running.

The increase affects bulk consumers such as local authorities and mines as well as other consumers who are not supplied with water by a local authority, but are supplied directly by Rand Water.

It is expected that local authorities will pass the increase on to the communities they supply in their announcements on their tariff increases.

The price increase of 6.5% is below inflation and has been achieved notwithstanding increases in prices of raw materials and commodities utilised in the treatment and transport of potable water.

Rand Water buys its raw water from the department of Water Affairs and Forestry (DWAF) which increased its own charges by 6,89c/kl in April 2000. The raw water cost is a major component of Rand Water’s input costs amounting to approximately 46 percent of total input costs.

The 6.5% price rise is attributable both to increases in operating costs and the need to fund additions to the utility’s infrastructure to meet rising demand from a growing population.

Said Vincent Bath, Rand Water's chief executive: "Every effort was made to keep the rise in line with, or below, the level of inflation – something we have been pleased to do yet again this year.

“However, an economic charge has to be made to underline the absolute necessity for making most efficient use of a vital resource.

"Rand Water draws on some of the world's purest sources of water and delivers a world class product.

"We're mindful of our responsibilities to the community and all our energies are directed at keeping water supplies as affordable as possible."

Current water demand management initiatives, if effective, will help in the postponement of costly future interbasin water transfer schemes, and the cooperation of both the municipalities and the public will be vital to the achievement of this cost saving programme.

Rand Water supplies about 3 000 million litres daily to Gauteng households and consumers as far afield as Rustenberg and Carletonville in the North West Province, Bethal in Mpumalanga and Heilbron in the Free State.

Rand Water, one of the largest bulk water suppliers in the world, maintains a network of pipelines more than 2800km long. It supplies four metropolitan councils and their 12 metropolitan sub-structures, 22 local councils, one provincial water supply authority, two service councils, 39 mines and about 1000 small direct customers.