During July and August 2024, the Department of Water and Sanitation (DWS) conducted raw water tariff consultations for the 2025/26 financial year with affected stakeholders across the country. On 15 August, AgriSA was given an opportunity to make representations to the DWS concerning its views on proposed tariff increases for the irrigation sector for the coming financial year.
Raw water tariffs are determined annually in accordance with the DWS’s Raw Water Tariff Strategy. The current raw water tariff strategy dates from 2007 and will be replaced as from next year.
Raw water charges are made up of a combination of catchment management area costs, infrastructure costs, waste discharge costs and Water Research Commission costs, and differ from sub-catchment area to sub-catchment area. Certain allowances are provided for, such as allowances for drought-affected areas and for “resource-poor” farmers.
Irrigation water use has up until now enjoyed preferential treatment with certain maximum permissible annual increases (caps) provided for. Due to the fact that irrigation water users have the lowest level of surety of supply (meaning that other water users are afforded preference above irrigation users), AgriSA has consistently argued in favour of capping of water tariff increases as a way of curbing the cost of this important input factor.
AgriSA acknowledges that expensive water infrastructure needs to be paid for in a fair manner by those using it (or benefiting from it) but stresses the importance of food security as well as the multiple economic and social benefits created by commercial (irrigation) farming, particularly in rural areas.
Proposed raw water tariff increases for the coming (2025/26) financial year are not excessive and average increases of around 5%. However, as emphasised during the consultations with the DWS, sensible engagement on raw water tariff increases requires full transparency on the sources and utilisation of raw water tariffs, budgeting procedures, outstanding debt, allocation of grants and treatment of new and existing assets and infrastructure, amongst other things.
On 28 August 2024, AgriSA will attend a final national consultation with the DWS in Johannesburg. Following that, the proposed raw water tariffs will be referred to the minister for sign-off and implementation as from the commencement of the 2025/26 financial year.
AgriSA emphasises the vital importance of ensuring that our water resources and infrastructure are properly managed, utilised and expanded for the benefit of our society – in particular in the interest of food security for our country and region. We call on our affiliated members to do their part and make sure that their water accounts are up to date.
