THE Department of Water and Sanitation (DWS) has kickstarted public consultation meetings with water users on raw water use charges for the 2026/2027 financial year across the country.
Raw water tariff consultations aim to update stakeholders, particularly water users, on the raw water user process and new proposed raw water use charges. The proposed raw water tariff increase consultations seek to ensure that the costs of managing and maintaining the water resource are covered by those who use the water, according to DWS.
In accordance with the Public Financial Management Act (PFMA) and the raw water pricing strategy that was established in terms of the National Water Act, the DWS is to annually undertake budget planning and tariff determination.
Thus, the department is required to consult with different water users, including mines, industries, agriculture, energy, and domestic users. Water use categories include abstraction use, water discharge use and non-consumptive use.
Raw water charges are determined in accordance with the raw water pricing strategy and such charges are approved on an annual basis to enable water boards and other entities to prepare their tariff determination process and consultations.
Raw water use charges include charges for:
- Water resource management charges (abstraction and waste-related activities), which recover the costs associated with the water resource management functions performed by the catchment management agencies. Charges relate to the activities that are required to protect, allocate, conserve, manage and control water resources and manage water quality located within Water Management Areas (WMA).
- Water resource infrastructure charges and use of waterworks, which refer to the recovery of costs related to the acquisition, planning and design, construction, alteration, repair, operations and control of state-owned waterworks, including the costs of investing and planning.
- Water research levy, which is a fund for research and development for the water sector. The Water Research Act (WRA), gives power to the minister, with the concurrence of the ministry of Finance, from time to time by notice in the Government Gazette, to set tariffs in respect of water research charges levied on quantities of water supplied, or made available for use, for various purposes. The charges are paid into a national Water Research Fund and used by the Water Research Commission (WRC) to fund water-centred research and development on behalf of the country.
The DWS said it will also hold consultations with sector-specific organisations on raw water use charges for 2026/2027, including the South African Association for Water User Associations (SAAFWUA), African Farmers Association of South Africa (AFASA), Agriculture South Africa (AgriSA) and Business Unity South Africa (BUSA).
The consultations with sector organisations will enable them to make inputs to the proposed tariff increases and engage the department on issues that range from budgeting, revenue collection, and billing complexities.
The final proposals on raw water use charges will be tabled for the Minister of Water and Sanitation to approve.