Revised Water Pricing Strategy: DWS briefing; with Deputy Ministers

Video In a virtual meeting, the Portfolio Committee engaged the Department of Water and Sanitation (DWS) on the implementation and implications of the 2024 pricing strategy for raw water use charges. During the presentation, the DWS outlined the objectives behind the new pricing strategy, emphasising the application of the polluter-pays and user-pays principles to promote responsible water usage and pollution control. A key feature of the strategy was the removal of price caps on raw water charges to better reflect economic costs and encourage conservation. The Department also discussed plans to strengthen tariff regulation through the establishment of an independent economic regulator to safeguard fairness and sustainability. Committee Members raised several pertinent questions relating to the Department’s institutional readiness to implement these changes. They expressed interest in the capacity of catchment management agencies (CMAs) and municipalities to enforce the revised pricing and monitoring mechanisms effectively. Particular attention was given to non-consumptive water use monitoring, especially in sectors such as hydropower and irrigation, and how agricultural stakeholders had been consulted to ensure inclusive compliance and buy-in. Concerns were also voiced about the potential impact of pricing reforms on water access inequality. Members stressed the importance of ensuring that vulnerable rural and peri-urban communities were protected, and that stakeholder engagement remained robust to balance economic imperatives with social equity. The discussion extended to dam safety and pollution control, where the Committee examined the Department’s role in managing dam infrastructure and preventing pollution incidents. The recent sewage discharge in the Tikwe River near Matjhabeng was cited as an example illustrating ongoing enforcement challenges. Further deliberations focused on the economic rationale behind removing price caps. Questions about the status and mandate of the independent economic regulator were also prominent, with Members seeking assurance that the regulator would maintain transparency, affordability, and sustainability in tariff oversight. Dam management and safety concerns were also discussed extensively. The Committee inquired about strategies to address infrastructure maintenance backlogs and mitigate risks associated with ageing dams, which were critical to regional water security. Water quality issues and municipal debt, particularly the increasing arrears owed by municipalities like Matjhabeng Local Municipality to water boards, were highlighted as significant challenges. The Chairperson concluded the meeting by emphasising the Committee’s resolve to maintain rigorous oversight of the pricing strategy’s rollout, municipal financial management, dam safety, and pollution control efforts.