Maravi

(HERALD) New water tariffs unsustainable: Official

New water tariffs unsustainable: Official
Sunday, 01 May 2011 22:15
By Michael Chideme

Harare Water's director, Engineer Christopher Zvobgo, has described the new water tariffs fixed by central Government as unsustainable saying imminent cashflow problems were likely to cripple operations and effectively strangulate water delivery.

In an interview last week Eng Zvobgo said Harare Water owed water treatment chemical suppliers and Zesa Holdings US$35 million and settlement would prove difficult with the new charges.

But Local Government, Rural and Urban Development Minister Ignatius Chombo insists the Government measures are justified because Harare does not buy raw water as it owns its raw water, treatment facilities and distribution network.

Government last week reduced fixed water charges for high density areas from US$7 to US$5, and those for low density suburbs from US$13 to US$11.

Residents of high density suburbs saw their charges for the first 20 cubic metres drop to US$0,25 a cubic metre, down from US$0,30, as a measure to cushion ratepayers.
For the same band, low density residents pay US$0,40.

Consumption in the 21 to 30 cubic metre bands has been pegged at US50c/cubic metre for high density users and US80c for low density, US75c/cubic metre high density and US80c low density for 31 to 50 cubic metres, and US$1/cubic metre high density and US$1,50 low density for consumption between 51 to 100 cubic metres.

Anything above 100 cubic metres attracts a charge of US$2 per cubic metre for both low and high density suburbs.

Eng Zvobgo said it costs US$0,70 to treat a cubic metre of water, implying that even at the council's US$30 per cubic metre consumers were still subsidised, the subsidy coming from fixed charges and the high charges paid by those wanting a lot of water.
He said further reducing the price had the net effect of crippling operations.

"Most consumers use less than 20 cubic metres. Thereafter usage is very minimal. We hoped to recoup our costs in the band with the most usage," he said.

He said Harare, which imports all its water treatment chemicals remained with the cheapest water in the region compared to other regional capitals like Johannesburg, Kampala, Gaborone, Cape Town and Durban.

The fixed water charge for Durban is US$12, Johannesburg US$16,30, while Cape Town, Kampala and Gaborone have no fixed charges. The first 20 cubic metres in Johannesburg are charged at US$1,39 while in Durban and Cape Town they are US$1,34 and US$1,23 respectively with Kampala and Gaborone are charging US$0,70.

Harare Water spends US$5m monthly broken down as follows US$2m for water treatment chemicals, US$1m for electricity, US$1 in labour costs and US$1m for maintenance and recurrent expenditure.

"Ideally we should collect US$8m but we are spending what we collect. We owe Zesa Holdings US$10m and they have taken us to court," he said.

Eng Zvobgo said residents owed the city US$55m in unpaid water bills. Out of the 189 000 water connections only 15 000 are industrial and commercial. A recent audit revealed that up to 15 000 households were using water for free because they were either illegally connected or were not registered with the city.

In an interview to get Government justification for reducing water charges for Harare in view of protests by Mayor Muchadeyi Masunda, Minister Chombo said countrywide Harare water should be the cheapest because the city wholly owned the entire water infrastructure including the sources of raw water.

He said last year Government gave the city US$17,1m to rehabilitate its water and sewer infrastructure while donors weighed in with water treatment chemicals arguing that such support should be reflected in the water charges.

"All those donations should be felt and enjoyed by the public or through improved water tariffs.

"The city is using water money to pay for other administrative issues that do not relate to water. We had no option but to protect the consumer," he said.
Minister Chombo said water should never be charged as a luxury but as a basic necessity.

Labels: HARARE CITY COUNCIL, WATER

posted by MrK @ 7:51 PM