Norms and Standards for Tariff Setting.

This document includes the main rules governing the water tariff setting in South Africa. The principles of water service tariffs emphasize affordability to ensure access for low-income groups, sustainability to recover minimum costs for continuous service, equity to ensure fair and accessible delivery without discrimination, transparency and predictability in the tariff-setting process, and multi-year planning to account for future tariff adjustments. Under Article 3, Water Services Providers (WSPs) and Water Services Authorities (WSAs) are responsible for supplying both bulk and retail water services, adhering to norms and standards for tariffs and service levels, with WSAs able to perform WSP functions under specified conditions, while all entities must ensure tariffs align with these standards or seek ministerial approval for exceptions. Article 5 mandates that WSPs and WSAs must accurately meter and monitor all water supplied and industrial effluent discharged, ensuring proper record-keeping and compliance with water use conditions. The procedure for setting tariffs is detailed in Article 6. The tariffs established cover all operational, maintenance, and development costs, generate sufficient revenue for loan repayment and capital return, and ensure a reasonable surplus, while also considering customer consultation and discretion in tariff structure and adjustments based on socio-economic factors and infrastructure needs. Article 11 allows a Water Services Provider to implement drought, seasonal, and penalty tariffs, following prescribed procedures, to manage restricted water supply, promote conservation, and penalize excess use, with prior customer notification required through multiple media channels.
Articles 14–22 address the Norms and Standards for Tariffs on Water Supply Services provided directly to consumers, establishing that while the Municipal Council holds the authority to approve tariffs, the Minister of Water and Sanitation may require the WSA or WSP to revise them if they do not comply with the prescribed standards. Similarly, Articles 23–33 set out the Norms and Standards for Tariffs on Sanitation Services, reaffirming the Municipal Council’s approval role, subject to potential ministerial intervention in case of non-alignment with the established norms.