Please see the City’s response to ‘Water tariff explanations will not impress ratepayers– Cape Chamber’, published on 23 September 2020 on Politicsweb.

29 September 2020

The City of Cape Town notes inaccurate and reckless claims by Mr Geoff Jacobs that the drought was somehow used to exploit residents.

The drought had a severely disruptive effect on the water delivery system, with emergency water restriction measures resulting in serious revenue shortfalls, even despite increases in the tariffs. 

We would like to reassure Mr Jacobs that many cuts have been made throughout the City over the years to compensate for revenue shortfalls in the water and sanitation service. There are just limits to what can be cut without creating additional risks to the service in the long term, especially given the extra costs we now face. Efficiencies in the system currently enable the City to deliver water that costs on average less than 6 cents per litre compared to R10 for bottled water.

Given how vital water is to life, ensuring it is available into the future is of highest priority for us all, and this requires a certain level of continual investment.

For instance, water augmentation is not ordinarily the responsibility of local government according to the Constitution, and was not factored into pre-drought tariffs as a result. However, the drought made it clear that it is necessary for the City to go above and beyond its Constitutional mandate to build water security by investing in alternative water supply sources.

An unsustainable water supply system will ultimately hurt the next generation, and while building resilience against climate change does come at a cost, it will be worth it in the long run.

This prioritisation of water security/resilience is the principle that underpins the water tariff structure. Social relief is also prioritised for households registered as indigent, including a free monthly allocation of water and sanitation services.

Despite extra costs, tariffs have also come down significantly since the height of the drought.

Should residents be comfortable enough to bring their consumption up further (without contravening the water restrictions or the City’s Water By-law), this will assist the City to cover costs while further lowering water tariffs.

We also expect that in years to come the slow natural rebound of consumption back from drought-levels will influence the level of tariff increases, which are required year-on-year going forward. This will however depend on consumption changes and increase in demand levels.

While consultations around appropriate restrictions and tariffs for the next hydrological year take place, the City would like to thank residents and businesses for using water responsibly and for paying their accounts. This investment has been invaluable in the City’s efforts to build resilience against climate change, and will play a key role in the City’s recovery from the economic consequences of the lockdown.

We would also be open to engaging Mr Jacobs further around the complexities of tariff setting to enable more constructive dialogue going forward.

Issued by Xanthea Limberg, Mayoral Committee Member for Water and Waste, City of Cape Town, 29 September 2020