Why water tariffs don’t come down - despite overflowing dams
The City of Cape Town will not reduce water tariffs, despite overflowing dams, as there is no direct link between the cost of delivering service and dam capacity
Tariffs are, however, lower than they were during the drought
The levy will remain in place, as it provides a sustainable source of revenue
Cape Town’s dams are overflowing, but authorities will not lower water tariffs to what they were before the most recent drought, the worst in living memory.
Some ratepayers are up in arms that prices are not set by supply and demand, but the City of Cape Town maintains that sound reasoning defines its tariff calculation.
John Maytham asked Councillor Xanthea Limberg to elaborate (scroll up to listen).
Currently, tariffs are far lower than they were during the drought… Residents should be paying about 4 cents per litre…Xanthea Limberg
The reason why the City is not in a position to further reduce tariffs… There isn’t necessarily a direct link between the cost of delivering service and where dams are in terms of capacity.Xanthea Limberg
The amount that needs to be recovered to fund the service depends on how much is being used… Our consumption has remained low, so cross-subsidisation is no longer available... Prior to the drought, the City was not charging residents the full cost of production…Xanthea Limberg
The levy… is still in place. It’s one way the city is able to secure a sustainable source of revenue…Xanthea Limberg
The City has implemented the lowest tariff increases when compared to all of the other metropolitan municipalities.Xanthea Limberg
Source : https://www.123rf.com/photo_119202323_water-flows-down-over-the-spillway-of-a-small-concrete-dam-.html