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Water Services Act, 1997 (Act No. 108 of 1997)

Notices

Norms and Standards for Tariff Setting, 2024 - effective 1 April 2026

Norms and Standards in respect of Tariffs for Sanitation Services supplied directly to consumers

24. Revenue requirements for provision of sanitation services

 

(1) A WSA must set its sanitation tariffs so that its revenue, inclusive of all account transfers and grants allocated to sanitation services, is sufficient to recover;—
(a) all reasonable costs directly and indirectly associated with the operations, maintenance, refurbishment and development of sanitation services, sanitation services customer care and all costs associated therewith;
(b) payments required to redeem its sanitation services related loans over a reasonable period; and
(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 24(1)(a) include:
(a) Employee related costs;
(b) Depreciation;
(c) Finance charges;
(d) Other expenditure;
(e) Indirect costs allocated to the sanitation services function by the WSA;
(f) Chemicals;
(g) Energy; and
(h) Maintenance.

 

(3) A WSA/WSP must determine estimates of the reasonable costs referred to in sub-regulations 24(1)(a) and 24(2) over a period of at least five (5) years to provide guidance on multi-year tariff projections.

 

(4) A WSA/WSP must, when estimating the amount to be recovered by tariffs, use a format consistent with the format in the table provided in Annexure D.