Cape Town dam levels increase to 95,6%

The total capacity of dams supplying the Cape Town metro increased to 95,6% between 31 August and 6 September 2020, a 4,9% rise from the previous week. The City is aware that the increase in dam levels is generating questions around water tariffs, which will also be addressed in this release. Read more below:

Water consumption for the same period increased by 21 million litres per day from an average of 633 million litres per day the previous week to 654 million litres per day. At the same time last year, dam levels were at 81,9%.

‘Seeing the dam levels draw nearer and nearer to the 100% mark is absolutely riveting. For everyone who grimly watched the weather forecasts on the edge of their seats through the winters of the past few years, reaching 95,6% today is remarkable.

‘Regarding tariffs: as previously stated, a reduction in tariffs will be dependent on an increase in consumption. Currently, the City is selling approximately 30% less water than before the drought, but is facing additional costs that come with increasing our resilience. It is important that the City cover its costs to ensure that the maintenance and augmentation programmes can be carried out. Should the amount of water we are selling significantly increase, this will be factored into the tariffs, but given the uncertain impact of climate change, it may not be wise to actively encourage such an approach at this stage,’ said Mayoral Committee Member for Water and Waste, Alderman Xanthea Limberg.

For more information on new water sources, water restrictions (Level 1 currently in place), guidelines around alternative water sources such as boreholes and rainwater tanks, as well as tariff information, please visit www.capetown.gov.za/thinkwater

Please see Alderman Limberg’s response to general questions from the public:

1. Now that the dam levels are increasing, can the City reduce the water tariffs?

The City does not budget for a profit from the sale of water and seeks to keep costs of service delivery as low as possible. The fixed/variable tariff model that the City uses is in place throughout South African municipalities due to the increased water security it allows.

A reduction in tariffs will be dependent on an increase in consumption. While the dams are the fullest they have been since 2014, consumption is still significantly lower than before. Currently, the City is selling approximately 30% less water than before the drought, but is facing additional costs that come with increasing our resilience. It is important that the City covers its costs to ensure that the maintenance and augmentation programmes can be carried out. Should the amount of water we are selling significantly increase, this will be factored into the tariffs, but given the uncertain impact of climate change, it may not be wise to actively encourage such an approach at this stage.

When compiling the budget, the City looks at affordability, and attempts to set service tariffs based on the projected consumption trends, so that the income received covers the cost of providing the service. The current tariffs are for the projections and realities of the 2020/21 financial year. Costs of providing water to the City stay similar, even if residents drastically reduce consumption, and if maintenance is delayed, it can cause much more serious and costly problems down the line. This service includes maintaining a 11 500 km water network, 9 500 km sewer infrastructure, 5 600 km stormwater pipelines, 490 waste water pump stations and 23 waste water treatment works.

2. Why do we need to pay a fixed basic charge when the dam levels are increasing?

Please note:

-  There is no ‘drought levy’ nor has there ever been. The fixed basic charge is not a ‘drought levy’. A proposed ‘drought levy’ was considered at one point during the drought, but it was never approved and therefore not implemented.

-  The fixed basic charge is not ‘an additional tariff’ but it forms part of the tariff structure.

The fixed basic charged was introduced to ensure financial sustainability irrespective of the level of consumption and to ensure a fairer payment of the costs by all customers.

Prior to the drought, the tariff was based on a consumptive portion only. The drought revealed that if consumption dropped significantly (i.e. beyond levels we could have expected before the drought), it could also affect our long-term future by taking away resources for necessary maintenance.

As such, in order to ensure the supply system is not undermined by resource constraints created by severe future drought, the City changed the tariff structure so that a fixed portion of the revenue necessary to run the system responsibly is guaranteed no matter how much water residents consume. Again, this is funding model that is used at all South African municipalities.

The tariff covers the cost of providing the service. This service includes maintaining a 11 500 km water network, 9 500 km sewer and therefore includes a usage/consumption and fixed component (i.e. fixed basic charge) which makes up the entire tariff to recover the cost of infrastructure, 5 600 km stormwater pipelines, 490 waste water pump stations and 23 waste water treatment works.

The consumptive tariff portion is lower than it would be if there was no fixed portion.

This fixed/variable tariff model is in place throughout South African municipalities due to the increased water security it allows.

3. What is the City doing to make sure we don’t run out of water in the future?

The City’s Water Strategy, which was launched in February this year, seeks to ensure that there will be sufficient water for all in our future, and Cape Town will be more resilient to climate change and other shocks. It takes into account the important yet complex relationships between water, people, the economy and the environment. The City is committed to striving towards ambitious goals over and above its municipal mandate, which does not include building additional resilience as is envisaged in the Water Strategy. The drought showed us that sole reliance on surface water, via the Western Cape Water Supply System, was not sustainable as climate variability increases.

The strategy includes commitment to develop new, diverse supplies of water including groundwater, water reuse and desalinated water cost-effectively and timeously to increase resilience and substantially reduce the likelihood of severe water restrictions in future. Expected timelines for implementation are also contained therein. The City is committed to increasing supply by building affordable new capacity of approximately 300 million litres per day over the next 10 years, and in suitable increments thereafter, in a way that is adaptable and robust to changes in circumstances.

More information about the City’s Water Strategy can be found here: http://www.capetown.gov.za/general/cape-town-water-strategy

Statement issued by: Media Office, City of Cape Town, 8 September 2020