1. DWAF: WATER SERVICES Regulations: Report to Portfolio Committee on Progress 23 May 2001

2. Purpose of this Presentation 4To provide an update of the progress made towards development of Regulations in terms of the Water Services Act (Act 108 of 1997) 4To discuss benefits of regulations to local government and the public 4To provide information on the support the Department of Water Affairs and Forestry will provide in terms of regulations

3. Introduction The Water Services Act allows the Minister to prescribe certain regulations pertaining to the provision of water services. Three sets of regulations have been drafted by DWAF in consultation with other stakeholders

4. Regulations Section 9(1) and Section 73(1)(j) regulations relate to compulsory national standards and measures to conserve water Section 10(1) regulations relate to norms and standards for tariffs Section 19(5) relate to the content of contracts between WSAs and WSPs

5. Process to develop regulations Extensive consultations over a two year period - national and regional stakeholder workshops - individual meetings with stakeholders Publications in the Government Gazette for comment Substantial changes based on public input Financial implications of regulations had to be carefully considered

6. Principles used when drafting regulations They should be simple and easy to implement. Regulate all WSIs. Benefit and protection of the consumer. Balance “purist” approach with practice. Keep to matters of national importance (independence of local government to be respected).

7. Principles used when drafting regulations Split national standards from local bylaws. Recognise that all regulations have cost implications for municipalities and other WSIs. Promote sound management principles. Must be applicable to the whole country (urban and rural) and to all WSIs.

8. How will regulations affect municipalities and the public Free basic water: S10 regs allow zero first step tariff and S9 regs define a basic level of service. S9 regs also require installation of meters within two years. Water quality: S9 regs will require municipalities to develop sampling and testing plans and to report health risks to the public.

9. How will regulations affect municipalities and the public Water loss management: S9 regs require implementation of water conservation and demand management principles including measurement, reporting and auditing of performance. S10 regs incorporates concept of a rising block tariff which discourages high levels of consumption.

10. How will regulations affect municipalities and the public Monitoring of service delivery: The water audits required in the S9 regs will report on the implementation of the WSDPs (including extension of service to previously unserved areas). Performance of WSPs: under the the S19 regulations all contracts for WSPs must have performance targets and indicators and must report on these.

11. How will regulations affect municipalities and the public Reporting to the public: the regulations require WSIs to report to the public on issues such as tariff structure, levels of service, water quality, performance against targets, water use and conservation measures, progress of service delivery, financial statements etc.

12. How will regulations affect municipalities and the public Dealing with complaints: a consumer charter to be developed by WSPs in consultation with the public to include procedures for dealing with complaints and consumer’s right to redress. Encouraging sound financial management Under S10 regs, WSIs are required to use revenue and planned subsidies to recover the costs of providing water services.

13. Stakeholders and interested parties All WSIs (includes local government as WSAs) SALGA National government (DPLG, National Treasury, DWAF) Organised labour Private sector operators and consultants NGOs and CBOs Consumers NEDLAC (Section 19(5))

14. Process to complete Section 9(1) and 73(1)(j) Regulations Approval by the State Legal Advisors (done) Approval by the Minister of Water Affairs and Forestry (done) Publication in the Government Gazette in May/June 2001.

15. Process to complete Section 10(1) Regulations Concurrence of Minister of Finance (done on 15 May 2001). Approval by the State Legal Advisors Final approval by the Minister of Water Affairs and Forestry Publication in the Government Gazette: May/June 2001

16. Process to complete Section 19(5) Regulations Comment from the National Economic Development and Labour Council (NEDLAC)(ongoing). Approval by the State Legal Advisors(done) Approval by the Minister of Water Affairs and Forestry(pending NEDLAC). Publication in the Government Gazette: June/July 2001.

17. Support Tools Guidelines to Regulations To be finalised by July 2001 (after promulgation of regulations) Model Contracts To be finalised by December 2001 Model Consumer Charter To be developed by December 2001