Section 56 of the National Water Act instructs the Minister to establish a Pricing Strategy for charges for any water use described in Section 21:
| a) |
taking water from a water resource; |
| c) |
impeding or diverting the flow in a watercourse; |
| d) |
engaging in a stream flow reduction activity (i.e. land-based activities which significantly reduce streamflow); |
| e) |
engaging in a controlled activity (i.e. activities having a detrimental impact on water resources); |
| f) |
discharging waste or water containing waste into a water resource; |
| g) |
disposing of waste in a manner which may detrimentally impact on a water resource; |
| h) |
disposing of water which contains waste from any industrial or power generation process; |
| i) |
altering the bed, banks, course or characteristics of a watercourse; |
| j) |
removing, discharging or disposing of water found underground; |
| k) |
using water for recreational purposes; |
It is important to note that the long term objective of the Department of Water Affairs and Forestry is to systematically consider each of the 11 water uses defined above and to decide if and how each one should be priced and charged for. It is acknowledged, however, that it is not feasible to consider developing a pricing strategy for g water uses in a short period of time. For example, while the management of diffuse sources of water pollution and the development of a comprehensive waste disposal charge system are likely to be important components of a future pricing strategy, they cannot realistically be fully implemented in this "first round" of pricing strategy initiatives. The pricing strategy must therefore be seen as a process that evolves over time; it begins by prioritising those uses of water that are likely to generate the most significant and long-lasting impact on South Africa’s scarce water resources.
The intention is to include the establishment of charges only for those water uses which are consumptive uses and can be expressed in volumetric terms regarding annual quantities abstracted, stored or reducing streamflow in the initial pricing strategy. This relates to the uses specified in section 21 in the following way:
| • |
Use (a) as far as abstraction from surface and underground water resources is concerned. |
| • |
Use (b) as far as the volume of water stored is concerned, subject to the following considerations: |
| ♦ |
Where water from the storage dam is abstracted for use, the volume annually abstracted will constitute the use; |
| ♦ |
Where storage dams are built only for recreational purposes or to enhance the real estate value of a property, and the dam derives water from a water-course having an assured low flow, or is fed by a scheme owned by the DWAF or a water management institution, the initial filling in the case of a new dam and the annual refilling in the case of an existing dam, will determine the annual quantity used. The use due to annual refilling will be based on the estimated nett annual evaporation losses from the full supply surface area of the dam under average climatic and rainfall conditions. |
| • |
Use (d) with reference to the quantified average annual use of forestry plantations for commercial purposes (Section 36 of the Act). |
| • |
Uses (f), (g) and (h) will not be covered under the initial pricing strategy. A pricing strategy is being developed for waste and waste water discharge and will form the subject of a separate future publication and consultation process in terms of section 56 of the National Water Act. The initial pricing strategy will, however, address the implementation of a charge to recover the administrative cost of water quality management. |
| • |
The other water uses mentioned in Section 21 will not be covered under this general pricing strategy, but such uses are subject to authorisation, which may include conditions for payment for the use of water in terms of this strategy, or other conditions to be adhered to. |
Contingency Fees Act, 1997
