Water and Sanitation Minister, Mr. Senzo Mchunu, will be leading a national consultation meeting on proposed raw water use charges for the 2024/25 financial year. The objective of the meeting is to ensure a fair and transparent process for all involved stakeholders.
Provincial Consultation Meetings
Earlier, provincial consultation meetings were held across all nine provinces where water users provided input and comments specific to their category of use.
National Consultation Meeting
The national consultation meeting, scheduled for Friday, 25 August 2023, at the Birchwood Hotel in Boksburg, will offer an opportunity for sector leaders to present their input and comments to a panel consisting of Deputy Director-Generals, the Chief Financial Officer, and Minister Mchunu. This panel holds the responsibility of approving charges.
Consultation Process
Extensive consultation is a requirement in line with Section 42 of the Municipal Finance Management Act (MFMA), which states that an organ of State should consult widely before increasing any price of bulk resources supplied to municipalities and municipal entities. The Minister must approve the raw water use charges no later than 30 September 2023. This deadline ensures that Water Boards can commence their bulk tariff determination process and consultation in October 2023.
Transparency and Fairness
Minister Mchunu has expressed his commitment to overseeing a fair and transparent consultation process for equitable water use in South Africa. He recognizes the importance of these consultations, understanding that they facilitate the gathering of comments and input from all affected parties, upholding the constitutional mandate.
Mandate and Strategy
The National Water Act (NWA) of 1998 empowers the Minister to establish a Pricing Strategy for any water use within the framework of existing relevant government policy, with the concurrence of the Minister of Finance, through a notice in the Government Gazette. This mandate requires the Department of Water and Sanitation to develop a Pricing Strategy for raw water use charges, as outlined in sections 56 to 60 of the NWA.
Budget Planning and Price Setting
The budget planning and price setting cycle adhere to the Public Finance Management Act (PFMA) of 1999 and the Raw Water Pricing Strategy established under section 56(1) of the National Water Act. As a result, the raw water use charges are approved and published annually by 30 September, enabling Water Boards and other entities to prepare their tariff determination processes and consultations.
Inclusive and Transparent Approach
The impending national consultation meeting, led by Minister Mchunu, promises an inclusive and transparent approach to determining raw water use charges and addressing sector-specific concerns. The process is designed to align with the constitutional mandate and ensure that all stakeholders have a voice in the decision-making process.
