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Why water tariffs don’t come down - despite overflowing dams

20 September 2021 4:44 PM
Tags:
Water tariffs
John Maytham
Xanthea Limberg
Day zero
Cape Town water tariff
Afternoon Drive with John Maytham

John Maytham interviews Councillor Xanthea Limberg.
  • 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


© unitysphere/123rf.com

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



20 September 2021 4:44 PM
Tags:
Water tariffs
John Maytham
Xanthea Limberg
Day zero
Cape Town water tariff
Afternoon Drive with John Maytham

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