Special Investigating Units and Special Tribunals Act, 1996
R 385
Water Services Act, 1997 (Act No. 108 of 1997)NoticesNorms and Standards for Tariff Setting, 2024 - effective 1 April 2026Norms and Standards in respect of Tariffs for Water Supply Services directly to consumers15. Revenue requirements for provision of water supply services |
| (1) | A WSA/WSP must set its water supply tariffs so that its water supply revenue, inclusive of all transfers and grants allocated to water supply services, is sufficient to recover: |
| (a) | all reasonable costs (directly and indirectly) associated with the operation, maintenance, refurbishment and development of water services, water services customer care and all costs associated therewith; |
| (b) | payments required to redeem its water services related loans over a reasonable period considerate of the inter-generational equity; |
| (c) | a net surplus on revenue that is justifiable and material to ensure that the institution is sustainable. |
| (2) | Reasonable costs referred to in sub-regulation 15(1)(a) include: |
| (a) | Employee related costs; |
| (b) | Depreciation; |
| (c) | Finance charges; |
| (d) | Bulk purchases including raw water, bulk potable water and electricity; |
| (e) | Other expenditure; and |
| (f) | Indirect costs related to the water services function by the WSA/WSP. |
| (g) | Chemical costs |
| (h) | Maintenance |
| (i) | Refurbishment |
| (3) | A WSA/WSP must determine estimates of the reasonable costs referred to in sub-regulations 15(1)(a) and 15(2) over a period of at least five (5) years in order to provide guidance on multi-year tariff projections. |
| (4) | A WSA/WSP may, when estimating the amount to be recovered by tariffs, use a format substantially similar to the table provided in Annexure D. |
