South Africa moves towards new raw-water charges following public consultations
The Department of Water and Sanitation (DWS) has concluded its public consultations on the proposed 2027/28 raw water-use charges.
After a series of engagements throughout the year, the DWS concluded the national consultations in August as part of its yearly process to determine raw water-use charges and provide relevant stakeholders and water users with an opportunity to engage on the proposed charges.
The final recommendations will be submitted to Water and Sanitation Minister Pemmy Majodina for consideration and approval.
Once approved, the raw water-use charges will be published and become applicable from April 1, 2027, while the approved water research levy will take effect from July 1, 2027.
The publication of the approved charges will provide water users and other stakeholders with certainty regarding the charges applicable for the 2027/28 financial year and enable relevant institutions and water users to make the necessary financial and operational preparations.
The final session of the consultations was attended by representatives of various sectors and organisations, including the Trans-Caledon Tunnel Authority, Sasol, Rand Water, uMngeni- uThukela Water, Forestry South Africa, DRDGOLD, the Crocodile River Irrigation Board, the South African Association for Water User Associations and other stakeholders.
During the meeting, the department presented the outcomes of the sector-specific consultations, provided feedback on the economic analysis undertaken in relation to the proposed raw water-use charges, and presented the final charges.
The proposed raw water-use charges comprise three key components: water resource management charges, water resource infrastructure charges and the water research levy.
Water resource management charges were presented for the six catchment management agencies, namely Inkomati-Usuthu, Pongola-uMzimkhulu, Mzimvubu-Tsitsikamma, Limpopo-Olifants, Breede-Olifants and Vaal-Orange.
Water resource infrastructure charges were presented for four sectors, namely industry and mining, strategic users, municipal and agriculture, while the water research levy was presented for the agriculture, streamflow reduction activities and domestic and industrial sectors. The domestic and industry category comprises strategic users, municipal and industry and mining.
The determination of raw water-use charges is undertaken within the legislative and policy framework governing water pricing in South Africa, including the National Water Act 1998, the Public Finance Management Act 1999 and the Pricing Strategy for Raw Water Use Charges.
The pricing strategy provides the framework for determining charges that contribute towards the funding of water resource management, water resource development and the use of waterworks.
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