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Water Services Act, 1997 (Act No. 108 of 1997)

Chapter II : Standards and Tariffs

10. Norms and standards for tariffs

 

(1) The Minister may, with the concurrence of the Minister of Finance, from time to time prescribe norms and standards in respect of tariffs for water services.

 

(2) These norms and standards may—
(a) differentiate on an equitable basis between—
(i) different users of water services;
(ii) different types of water services; and
(iii) different geographic areas, taking into account, among other factors, the socio-economic and physical attributes of each area;
(b) place limitations on surplus or profit;
(c) place limitations on the use of income generated by the recovery of charges; and
(d) provide for tariffs to be used to promote or achieve water conservation.

 

(3) In prescribing the norms and standards, the Minister must consider, among other factors—
(a) any national standards prescribed by him or her;
(b) social equity;
(c) the financial sustainability of the water services in the geographic area in question;
(d) the recovery of costs reasonably associated with providing the water services;
(e) the redemption period of any loans for the provision of water services;
(f) the need for a return on capital invested for the provision of water services; and
(g) the need to provide for drought and excess water availability.

 

(4) No water services institution may use a tariff which is substantially different from any prescribed norms and standards.