Water and Sanitation on consultations of raw water tariffs increase for 2026/2027 financial year

The Department of Water and Sanitation (DWS) has kickstarted the public consultation meetings with water users on raw water use charges for 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 the 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.

In accordance with the Public Financial Management Act (PFMA) Act No 1 of 1999 and the Raw Water Pricing Strategy that was established in terms of section 56(1) of the National Water Act No. 36 of 1998, the DWS is to annually undertake budget planning and tariff determination.

Thus, the department is required to consult with different water users which include mines, industries, agriculture, energy, and domestic users. Water use categories include abstraction use, water discharge use and non-consumptive.

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.

The 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. The charges relate to charging for the activities that are required to protect, allocate, conserve, manage and control the 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 Government waterworks, including the costs of investing and planning.

• Water Research Levy, which is the fund for research and development for the entire water sector. The Water Research Act (WRA), Act No. 34 of 1971, gives power to the Minister, with the concurrence of the Ministry of Finance, from time to time by notice in the 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-centered research and development on behalf of the nation.

The Department will also hold consultations with sector-specific organisations on raw water use charges for 2026/2027 financial year with various organisations that include 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.

Enquiries:
Wisane Mavasa
Spokesperson for the Department of Water and Sanitation
Cell: 060 561 8935
E-mail: mavasaw@dws.gov.za

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