1. CHIEF DIRECTOR: REGULATION October 2012

2. WHY IS REGULATION IMPORTANT? (VALUE CHAIN) To ensure the protection, use, development, conservation, management and control of water resources. The guiding principles (sustainability and equity) recognise −the basic human needs of present and future generations, −the need to protect water resources, −the need to share some water resources with other countries, −the need to promote social and economic development through the use of water.

3. WHY IS REGULATION IMPORTANT? To ensure the protection- the health and interest of citizen To ensure the protection of citizens rights to basic water services To realise the above : (protection of the water resources and citizens) Regulatory function entails: −Authorisation −Compliance monitoring −Enforcement

4. DRIVERS OF REGULATION WATER RESOURCES RSA is rated as water scarce thus the need to protect the resource from threats of : over abstraction discharges that are not compliant with the set standards unlawful water use etc WATER SERVICES The need to protect the health and interest of citizens The need to protect the citizen rights to basic water services. Increased demand for water services due to among others population growth, migration from rural to cities.

5. DRIVERS OF REGULATION (Cont...) ECONOMIC REGULATION The protection of the interest of the consumers without compromising the sustainability of the Water Services Institutions Ensuring that tariffs throughout the value chain are: fair to all citizens (equitable); affordable (viable; ensure economically effective & efficient use of resources); and allow for continuity of service (sustainability).

6. DRINKING WATER QUALITY Comparison of 2009 (first) and 2012 Blue Drop reports on the National microbiological compliance of the South African tap water measured against the National Standard (SANS 241) indicates an improvement. WASTE WATER Improved/reduced risk rating WATER RESOURCE Increased reports of unlawful Water Use Increase application for Water Use authorisation - increased the need for Compliance monitoring and Enforcement Capacity constraints in dealing with the demand for increased regulatory function SITUATION ANALYSIS

7. WHAT IS THE STRATEGY GOING FORWARD (HOW TO)? Strengthening and continuous improvement of Water services Regulation by e.g. (RPMS)Regulatory Performance Measurement Systems INCENTIVE-BASED REGULATION: The conscious use of rewards as well as penalties to encourage performance and continuous improvement TARGETED RISK-BASED REGULATION Risk-based regulation allows the institutions to identify and prioritise the critical risk areas within its water and wastewater management and to take corrective measures to abate these. Risk analysis is used by the Regulator to identify, quantify and manage the corresponding risks according to their potential impact on the water resource and to ensure a prioritised and targeted regulation

8. WHAT IS THE STRATEGY GOING FORWARD (HOW TO)? PRIORITISING GEOGRAPHIC AREAS AND SECTORS e.g._stressed WMA −Mpumalanga - Sector (Mining) −Vaal - Sector (Irrigation) SEPARATING (WITHIN DWA) SUPPORT FROM REGULATION Referring cases of ailing municipalities needing support to sector support unit of the Department (Rapid Response Unit.)

9. WHAT IS THE STRATEGY GOING FORWARD (HOW TO)? (Cont...) CAPACITATED STAKEHOLDERS Awareness campaigns Strengthen the role of Civil society OTHER MEASURES Inter departmental collaboration Joint investigations with law enforcement agencies Strengthening the compliance and enforcement unit Targeting specific problem areas Promoting self-regulation Entrench the principles of Regulation Development of Regulatory tools

10. WATER ALLOCATION REFORM

11. OBJECTIVES OF WATER ALLOCATION REFORM Giving effect to Equity Principle by: Redressing past imbalances (race and gender) Contributing to Broad-Based Black Economic Empowerment Enhancing Capacity development Supporting Local, provincial and national planning initiatives Facilitating Fair, reasonable and consistent Allocations Achievement of Development objectives

12. OBJECTIVES.... To have meaningful transformation in water use To support poverty eradication & economic development thTo help balance resource protection, equity and growth

13. SITUATION ANALYSIS (WHAT IS THE CURRENT SITUATION LIKE ) Large quantities of water in the hands of Non HDIs; Most applications received are from Non HDIs without any indications of contribution to redress and equity Allocable water getting depleted without achieving equity in allocations Difficulties experienced by HDIs in using water for productive purposes. Trading of water does not necessarily contribute to equity Lenient legislation towards the status quo

14. WHAT IS THE STRATEGY GOING FORWARD (HOW TO)? The Water Allocation Reform Strategy (WARS) proposes strategic mechanisms to achieve the set targets: Set-Asides General authorizations Strategic alignment with other national initiatives Compulsory Licensing Partnerships Review of the current WAR strategy

15. TARGETS OF WATER ALLOCATION REFORM National targets in respect of blacks YEARTARGET 201430% 201945% 202460% National targets in respect of women YEARTARGET 201430% 201940% 202450%

16. The sucess of WAR is largely dependent on collaboration with all sectors (mining, industry, agriculture, etc)

17. Thank you