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This Chapter deals with the measures to finance the provision of water resource management services as well as financial and economic measures to support the implementation of strategies aimed at water resource protection, conservation of water and the beneficial use of water.
In terms of Part 1 the Minister may from time to time, after public consultation, establish a pricing strategy which may differentiate among geographical areas, categories of water users or individual water users. The achievement of social equity is one of the considerations in setting differentiated charges. Water use charges are to be used to fund the direct and related costs of water resource management, development and use, and may also be used to achieve an equitable and efficient allocation of water. In addition, they may also be used to ensure compliance with prescribed standards and water management practices according to the user pays and polluter pays principles. Water use charges will be used as a means of encouraging reduction in waste, and provision is made for incentives for effective and efficient water use. Non-payment of water use charges will attract penalties, including the possible restriction or suspension of water supply from a waterwork or of an authorisation to use water.
56.(1): The Minister may, with the concurrence of the Ministry of Finance, from time to
time by notice in the Gazette, establish a pricing strategy for charges for any water use
within the framework of existing relevant government policy.
56.(2): The pricing strategy may contain a strategy for setting water use charges -
56.(2)(a): for funding water resource management, including the related costs of -
56.(2)(a)(i): gathering information;
56.(2)(a)(ii): monitoring water resources and their use;
56.(2)(a)(iii): controlling water resources;
56.(2)(a)(iv): water resource protection, including the discharge of waste and the
protection of the Reserve; and
56.(2)(a)(v): water conservation;
56.(2)(b): for funding water resource development and use of waterworks, including -
56.(2)(b)(i): the costs of investigation and planning;
56.(2)(b)(ii): the costs of design and construction;
56.(2)(b)(iii): pre-financing of development;
56.(2)(b)(iv): the costs of operation and maintenance of waterworks;
56.(2)(b)(v): a return on assets; and
56.(2)(b)(vi): the costs of water distribution; and
56.(2)(c): for achieving the equitable and efficient allocation of water.
56.(3): The pricing strategy may -
56.(3)(a): differentiate on an equitable basis between -
56.(3)(a)(i): different types of geographic areas;
56.(3)(a)(ii): different categories of water use; and
56.(3)(a)(iii): different water users;
56.(3)(b): provide for charges to be paid by either -
56.(3)(b)(i): an appropriate water management institution; or
56.(3)(b)(ii): consumers directly;
56.(3)(c): provide for the basis of establishing charges;
56.(3)(d): provide for a rebate for water returned to a water resource; and
56.(3)(e): provide on an equitable basis for some elements of the charges to be waived in
respect of specific users for a specified period of time.
56.(4): The pricing strategy may differentiate under subsection (3)(a) -
56.(4)(a): in respect of different geographic areas, on the basis of -
56.(4)(a)(i): socio-economic aspects within the area in question;
56.(4)(a)(ii): the physical attributes of each area; and
56.(4)(a)(iii): the demographic attributes of each area;
56.(4)(b): in respect of different types of water uses, on the basis of -
56.(4)(b)(i): the manner in which the water is taken, supplied, discharged or disposed of;
56.(4)(b)(ii): whether the use is consumptive or non-consumptive;
56.(4)(b)(iii): the assurance and reliability of supply and water quality;
56.(4)(b)(iv): the effect of return flows on a water resource;
56.(4)(b)(v): the extent of the benefit to be derived from the development of a new water
resource;
56.(4)(b)(vi): the class and resource quality objectives of the water resource in
question; and
56.(4)(b)(vii): the required quality of the water to be used; and
56.(4)(c): in respect of different water users, on the basis of -
56.(4)(c)(i): the extent of their water use;
56.(4)(c)(ii): the quantity of water returned by them to a water resource;
56.(4)(c)(iii): their economic circumstances; and
56.(4)(c)(iv): the statistical probability of the supply of water to them.
56.(5): The pricing strategy may provide for a differential rate for waste discharges,
taking into account -
56.(5)(a): the characteristics of the waste discharged;
56.(5)(b): the amount and quality of the waste discharged;
56.(5)(c): the nature and extent of the impact on a water resource caused by the waste
discharged;
56.(5)(d): the extent of permitted deviation from prescribed waste standards or management
practices; and
56.(5)(e): the required extent and nature of monitoring the water use.
56.(6): In setting a pricing strategy for water use charges, the Minister -
56.(6)(a): must consider the class and resource quality objectives for different water
resources;
56.(6)(b): may consider incentives and disincentives -
56.(6)(b)(i): to promote the efficient use and beneficial use of water;
56.(6)(b)(ii): to reduce detrimental impacts on water resources; and
56.(6)(b)(iii): to prevent the waste of water; and
56.(6)(c): must consider measures necessary to support the establishment of tariffs by
water services authorities in terms of section 10 of the Water Services Act, 1997
(Act No. 108 of 1997), and the use of lifeline tariffs and progressive block tariffs.
56.(7): Before setting a pricing strategy for water use charges under subsection (1), the
Minister must -
56.(7)(a): publish a notice in the Gazette -
56.(7)(a)(i): setting out the proposed pricing strategy; and
56.(7)(a)(ii): inviting written comments to be submitted on the proposed strategy,
specifying an address to which and a date before which the comments are to be submitted,
which date may not be earlier than 90 days after publication of the notice;
56.(7)(b): consider what further steps, if any, are appropriate to bring the contents of
the notice to the attention of interested persons, and take those steps which the Minister
considers to be appropriate; and
56.(7)(c): consider all comments received on or before the date specified in the notice.
57.(1): Water use charges -
57.(1)(a): may be made -
57.(1)(a)(i): within a specific water management area; or
57.(1)(a)(ii): on a national or regional basis; and
57.(1)(b): must be made in accordance with the pricing strategy for water use charges set
by the Minister.
57.(2): Charges made within a specific water management area may be made by and are
payable to the relevant water management institution.
57.(3): Charges made on a national or regional basis -
57.(3)(a): may be made by the Minister and are payable to the state; and
57.(3)(b): may be apportioned between different water management areas according to the
extent of the specific benefits which each water management area derives or will derive
from the water uses for which the charges are made.
57.(4): Any person liable to pay water charges to a water services institution as defined
in the Water Services
Act, 1997 (Act No. 108 of 1997), for water supply services or sanitation services may
not be charged for those services in terms of this Act.
57.(5): No charge made under this Act may be of such a nature as to constitute the
imposition of a tax, levy or duty.
58.(1): The Minister may direct any water management institution to recover any charges
for water use made by the Minister under section
57(1)(a) from water users within its water management area or area of operation, as
the case may be.
58.(2): A water management institution which has been directed to recover any such charges
may retain such portion of all charges recovered in order to recompense it for expenses
and losses, as the Minister may allow.
58.(3): A water management institution which has been directed to recover any such charges
-
58.(3)(a): is jointly and severally liable to the state with the water users concerned;
and
58.(3)(b): may recover any amounts paid by it in terms of paragraph (a) from the water
users concerned.
59.(1): Water use charges contemplated in this Chapter -
59.(1)(a): may only be made in respect of a water use to which a person is voluntarily
committed; and
59.(1)(b): must bear a direct relationship to the water use in question.
59.(2): Any person registered in terms of a regulation under section 26 or holding a licence to use water must pay
all charges imposed under section 57 in respect of
that water use.
59.(3): If a water use charge is not paid -
59.(3)(a): interest is payable during the period of default at a rate determined from time
to time by the Minister, with the concurrence of the Minister of Finance, by notice in the
Gazette; and
59.(3)(b): the supply of water to the water user from a waterwork or the authorisation to
use water may be restricted or suspended until the charges, together with interest, have
been paid.
59.(4): A person must be given an opportunity to make representations within a reasonable
period on any proposed restriction or suspension before the restriction or suspension is
imposed.
59.(5): Where there is a fixed charge, a restriction or suspension does not relieve a
person of the obligation to pay the charges due for the period of the restriction or
suspension.
59.(6): A person whose water use is restricted or suspended for any lawful reason may not
later claim the water to which that person would otherwise have been entitled during the
period of restriction or suspension.
60.(1): A charge made in terms of section 57(1), including
any interest, is a charge on the land to which the water use relates and is recoverable
from the current owner of the land without releasing any other person who may be liable
for the charge.
60.(2): The Minister or relevant water management institution must -
60.(2)(a): on written application by any person; and
60.(2)(b): within 30 days of the application, issue a certificate stating the amount of
any unpaid water charges and any interest due in respect of any land.
60.(3): If a certificate is not issued within the period of 30 days, the provisions of
subsection (1) cease to apply to that property, notwithstanding section 66.
Part 2 deals with financial assistance, which may be granted once certain considerations are taken into account.
61.(1): The Minister may, subject to a regulation made under section 62, give financial assistance to any person for
the purposes of this Act, including assistance for making licence applications, in the
form of grants, loans or subsidies, which may be made subject to such conditions as the
Minister may determine.
61.(2): The financial assistance must be from funds -
61.(2)(a): appropriated by Parliament; or
61.(2)(b): which may under this Act or otherwise lawfully be used for the purposes in
question.
61.(3): Before giving any financial assistance, the Minister must take into account all
relevant considerations, including -
61.(3)(a): the need for equity;
61.(3)(b): the need for transparency;
61.(3)(c): the need for redressing the results of past racial and gender discrimination;
61.(3)(d): the purpose of the financial assistance;
61.(3)(e): the financial position of the recipient; and
61.(3)(f): the need for water resource protection.
61.(4): A person who wilfully fails to comply with any obligations imposed by this Act is
not eligible for financial assistance under this Act.
The Minister may make regulations concerning -
62.(a): the eligibility for financial assistance;
62.(b): the manner in which financial assistance must be applied for; and
62.(c): terms and conditions applicable to any financial assistance granted.
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