
NEWS RELEASE
DATE : 13 JANUARY 2010
EMERGENCY INCREASE IN WATER TARIFFS
The Town Council of Mossel Bay approved an emergency increase in water tariffs with effect from 1 March 2010 at a Special Council Meeting that took place on Monday, 11 January 2010. The installation of flow restrictive devices at households that continued to use more than 50 kilolitres of water per month during November 2009, December 2009 and January 2010 was also approved.
The increase in rates was permitted by the Minister of Finance who exempted the Municipalities in the Eden District Municipality area that are experiencing a water crisis at present from the relevant provisions of the Municipal Finance Management Act. The provisions concerned do not allow tariff increases during the course of a normal financial year without the permission of the Minister. The increase in rates has been allowed to accommodate the water crisis and impending shortfalls in budgeted revenue from water sales.
The water tariffs for consumption of more than 20 kilolitres per household per month will be increased between 100 per cent and 200 per cent.
The increase for consumption of 21 kilolitres to 30 kilolitres per month is 100 per cent from R3,61, plus VAT, per kilolitre to R7,22, plus VAT, per kilolitre. For consumption of 31 kilolitres to 40 kilolitres the increase is 150 per cent from R3,91, plus VAT, to R9,78, plus VAT, per kilolitre. The tariff for consumption of 41 kilolitres to 45 kilolitres per month will go up by 200 per cent from R3,91, plus VAT, per kilolitre, to R11,73, plus VAT, per kilolitre. Thereafter the tariffs will be 200 per cent higher for every increment up to 80 kilolitres. The tariff for consumption of more than 80 kilolitres per month is increased from R9,83, plus VAT, to R29,49, plus VAT.
The tariffs for households that consume up to 20 kilolitres per month will remain unchanged at R3,61, plus VAT, per kilolitre. All households will continue to receive 6 kilolitres of free water per month.
The above mentioned rates will be applicable from 1 March 2010 to 30 June 2010 and will be advertised in the media before implementation. The rates for the 2010/2011 financial year, which will be determined when the Municipality’s 2010/2011 budget is finalised, will come into effect on 1 July 2010.
The water restrictions that are in force at present remain unchanged except that punitive tariffs, over and above the basic tariff, are now increased to 100 per cent for consumption exceeding 20 kilolitres per month. This is because the level of the Wolwedans Dam stood at 38,5 per cent at the end of December 2009. It is therefore within the bracket of 25 per cent and 40 per cent at which the punitive tariff of 100 per cent applies and which has been communicated to residents on several occasions.
Vehicle wash businesses may also not make use of hose pipes and may only use buckets and high-pressure apparatus for the washing of vehicles. Hose pipes connected to the municipal water supply and fitted with nozzle do not qualify as high-pressure apparatus Qualifying sports fields may now only be irrigated once a week instead of twice a week as allowed previously.
The flow restrictive devices will be installed for the account of the households concerned and it is aimed at those who continue to defy appeals to save water.
“The tariffs and additional restrictions relating to vehicle wash businesses and sports fields are also intended to encourage large consumers to save water. The Wolwedans Dam has now reached an alarmingly low level and according to the weather bureau the prospects for good rain in the municipal area in the short unfortunately remain poor,” said the Municipal Manager, Dr Michele Gratz.
She said that even with the new tariffs municipal water remains much cheaper in Mossel Bay than in neighbouring towns that have also been declared disaster areas. In some cases the tariffs up to 20 kilolitres are 300% higher than Mossel Bay’s tariffs.
Some of them have also stopped the free allocation of 6 kilolitres per month while the Town Council of Mossel Bay, in contrast, has decided to retain the free allocation for the time being.
“I cannot emphasise strongly enough how important it is for every resident and business in Mossel Bay to co-operate in this regard and to reduce their consumption of municipal water to the absolute minimum. While I would like to thank the co-operating households, who are fortunately in the majority by far, it is unfortunately a cause for concern that there are still households who do not seem to grasp the seriousness of the situation. I appeal to them as well to co-operate,” said Dr Gratz.
Ends