WSDP: MODULE 2
TOPIC 10: FINANCIAL PROFILE
10. FINANCIAL PROFILE
10.1. Capital funds
10.1.1. Situation assessment (Capital Funds): Capital expenditure
Table 1 shows the actual capital expenditure for 2008/09, 2009/10 and 2010/12.
Table 1: Historic Capital Budget of Water and Sanitation Services
Area (R'million)
2008/09
2009/10
2010/11
2011/12
Bulk Water
35.3
25.2
19.2
17.0
Reticulation
290.5
219.6
149.6
216.3
Wastewater
Treatment
253.4
235.5
121.5
Water Demand
management
44.5
8.9
14.5
EAMS
20.3
26.2
36.9
Informal
Settlements
18.0
24.8
22.2
Meter Replacement
7.1
9.9
14.6
Information
Technology
7.8
8.9
7.3
Technical Operation
Centre
1.0
5.9
0.0
Master planning
2.0
3.9
0.4
0.1
Other
4.4
2.2
4.6
4.9
TOTAL
684.3
571.0
390.7
605.2
223.2
24.7
62.6
28.4
12.3
12.7
2.8
Capital expenditure of R605.2 million was incurred during the 2011/12 financial period.
10.1.2. Capital expenditure: water (R Million)
Refer to Table 1
10.1.3. Capital expenditure (budget): sanitation (R Million)
Refer to Table 1
2.172
10.1.4. Sources of capital income: water (R Million)
The capital expenditure in Table 2 was financed from the following sources:
Table 2: The capital expenditure in Table 1 was financed from the following sources:
Funder
MIG (CGD)
2008/09
2009/10
2010/11
2011/12
211.5
164.8
88.6
202.2
CMIP
-
-
0.0
-
DWA
-
-
6.6
-
AFF (now CRR)
23.5
14.3
7.7
14.3
BICL (now CRR
– DC)
37.8
17.4
EFF
Other
TOTAL
7.8
402.1
363.4
264.4
388.7
9.4
11.1
15.6
-
684.3
571.0
390.7
605.2
Source: Water and Sanitation – Capital Projects
10.1.5. Sources of capital income: sanitation (R Million)
Refer to Table 2.
2.173
10.1.6. Future trends and goals (capital budget)
The annual capital budget is expected to grow to R859.0 million by 2013/14.
Table 3: Projected Capital Budget of Water and Sanitation Services
2013/14 (Budget)
2014/15
2015/16
Area (R'million)
98.4
190.2
241.2
396.6
316.1
361.6
188.1
205.3
316.6
57.6
54.0
54.0
65.2
34.7
34.3
22.0
23.0
23.0
90.0
147.0
222.2
6.0
5.0
6.0
0.0
1.0
2.0
5.5
4.0
4.0
15.5
76.1
109.0
944.9
1056.3
1373.9
Bulk Water
Reticulation
Wastewater Treatment
Water Demand management
EAMS
Informal Settlements
Meter Replacement
Information Technology
Technical Operation Centre
Master planning
Other
TOTAL
Source: Water and Sanitation – Capital Projects
Investment in reticulation, wastewater treatment and bulk water infrastructure is still
expected to dominate Water and Sanitation’s budget going forward – at levels of 79.02%
and 81.51% in 2011/12 and 2012/13 respectively.
10.1.7. Capital expenditure (budget): water
See 10.1.6
10.1.8. Capital expenditure (budget): sanitation (R Million)
See 10.1.6
2.174
10.1.9. Sources of capital income: water (R Million)
The projected capital expenditure will be financed from the sources given below:
2013/14 (Budget)
2014/15
2015/16
Area (R'million)
98.4
190.2
241.2
396.6
316.1
361.6
188.1
205.3
316.6
57.6
54.0
54.0
65.2
34.7
34.3
22.0
23.0
23.0
90.0
147.0
222.2
6.0
5.0
6.0
0.0
1.0
2.0
5.5
4.0
4.0
15.5
76.1
109.0
944.9
1056.3
1373.9
Bulk Water
Reticulation
Wastewater Treatment
Water Demand management
EAMS
Informal Settlements
Meter Replacement
Information Technology
Technical Operation Centre
Master planning
Other
TOTAL
Table 4: Sources for Projected Capital Budget of Water and Sanitation Services
Funder
USDG
2011/12 Budget
234.0
2013/14
2012/13
206.0
169.4
CMIP
DWA
AFF (now CRR)
33.0
32.6
36.0
BICL (now CRR - DC)
13.3
4.5
3.1
648.7
801.2
1153.4
16.0
12.0
12.0
944.9
1056.3
1373.9
EFF
Other
TOTAL
Source: Capital Budget, Funding Source Description
10.1.10. Sources of capital income: sanitation (R Million)
See Table 4.
2.175
10.1.11. Strategic gap analysis (capital funds)
Obtain the optimum level of funding to ensure that current and future infrastructure is in
place versus the financial affordability/sustainability of the service.
10.1.12. Implementation strategies (capital funds)

Optimisation of Grant funding

Increasing the CRR via income and expenditure interventions to make provision for
future infrastructure.
2.176
10.2. Operating Cost and Income
10.2.1. Situation assessment (operating costs and income)
In 2011/12 operating costs amounted to approximately R4.6 billion.
Table 5: The Historic Operating Costs of Water and Sanitation Services
(R'000)
2007/08
2008/09
2009/10
2010/11
2011/12
Puchase of bulk water*
227 535
256 409
275 643
293 325
320 262
-
-
Production costs (raw water + treatment
system) *
-
Operating costs *
-
-
-
-
-
Salaries and wages*
429 647
553 364
721 859
775 017
866 298
Maintenance and repairs
115 755
158 810
195 162
-
-
Depreciation
159 805
174 777
186 795
229 972
275 069
Finance charges
116 823
151 803
189 798
241 213
250 486
Other
771 140
1 226 201
1,127,325
1 534 557
1 492 027
1 820 705
2 521 364
2 696 582
3 074 084
3 204 142
935 579
959 494
1 142 515
1 376 297
1 474 651
2 756 284
3 480 858
3 839 097
4 450 381
4 678 793
Total costs
Add: Inter-Departmental Charges
TOTAL COSTS
-
-
source: Water and Sanitation
10.2.1.1. Operating costs: water
Refer to 10.2.1.
10.2.1.2. Operating costs: sanitation
Refer to 10.2.1
2.177
10.2.1.3. Operating income: subsidies
In 2010/11 the income of water and sanitation stood at R4.37 billion, this increased by
11.90% to R4.89 billion in 2011/12.
Table 6: The Historic Income of Water and Sanitation Services
(R'000)
Service charges
Finance income
Government
grants
(Operating)
Government Grants
(Capital)
Other
Add: InterDepartmental
Charges
2008/09
2 062 095
172 461
13 675
2009/10
2 322 031
183 845
2 527
2010/11
2 590 274
185 244
2 915
2011/12
2 861 406
209 076
7 360
217 616
165 883
95 134
192 281
61 347
89 974
120 744
145 985
2 527 194
1 052 585
2 764 260
1 160 204
2 994 311
1 376 297
3 416 108
1 474 651
3 579 779
3 924 464
4 370 608
4 890 759
Source: Water and Sanitation
10.2.1.4. Operating income: tariffs
Revised Water and Sanitation Tariff Policies are approved every year.
10.2.1.5. Future trends and goals (operating cost and income)
10.2.1.6. Operating costs: water
The income from service charge of water supply and sanitation services is expected to be
more than 10%.
Table 7: Projected Operating Costs of Water and Sanitation Services
(R'000)
Puchase of bulk water*
Production costs (raw water + treatment system)
Operating costs
Salaries and wages
Maintenance and repairs
Depreciation
Finance charges
Other
2012/13
334 673
1 044 406
279 467
287 269
1 962 448
2013/14
391 911
1 139 521
299 030
317 975
2 231 219
2014/15
393 631
1 235 131
365 301
327 170
2 350 467
Total costs
Add: Inter-Departmental Charges
3 908 263
1 604 301
4 379 656
1 712 616
4 671 700
1 833 332
TOTAL COSTS
5 512 564
6 092 272
6 505 032
Source: Water and Sanitation;
2.178
10.2.1.7. Operating income: tariff
The income from service charge of water supply and sanitation services is expected to be
more than 10%.
Table 8: The Projected Income of Water and Sanitation Services
(R'000)
Service charges *
Finance income *
Government grants (Operating) *
Government grants (Capital) *
Other
2012/13
3 287 343
200 000
197 200
138 721
2013/14
3 702 700
211 200
239 000
27 143
2014/15
4 023 813
221 760
206 000
150 396
Add: Inter-Departmental Charges
3 823 264
1 664 491
4 180 042
1 885 238
4 601 969
1 903 063
5 487 755
6 065 281
6 505 032
Source: Water and Sanitation; MTREF
10.2.1.8. Strategic gap analysis (operating cost and income)
Capital budget: The high requirement for necessary infrastructure is driven largely by
growth and economic development as well as the refurbishment of current infrastructure
which places severe pressure on the City’s Capital Budget.
Operating budget: It is difficult to reach optimum levels of staff, maintain acceptable levels
of infrastructure maintenance and carry the impact of the capital programme within the
financial constraints during difficult economic conditions.
10.2.1.9. Implementation strategies (operating cost and income)
To achieve the required Capital Budget, it is necessary to maximise the use of Grant
funding and to make optimal use of the Capital Replacement Reserve (CRR) within the
financial constraints.
The pressure on the operating budget needs to be addressed via above-inflation tariff
increases and initiatives to ensure that money due to the City is collected. There is a benefit
envisaged from metering efficiency gains and data purification exercises.
2.179
General strategies:

Making adequate provision for the poor by maintaining a stepped tariff crosssubsidising the shortfall in the free basic service.

Further relief to the poor via assistance to indigent customers.

Investigation and debate into the use of Prepayment meters.

Escalated focus on the collection of debt by increasing the capacity.

Escalated focus on revenue protection and metering efficiency.

Ensuring that adequate cash reserves are maintained to cover legislated funds.
2.180
10.3. Tariff and charges
10.3.1. Situation assessment (tariff and charges): residential
Table 9: Historic Water and Sanitation Tariffs – Residential
WATER TARIFFS (Rands)
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
Domestic Full: 0-6 kℓ
-
-
-
-
-
-
+6-12 kℓ
3.05
3.33
3.66
na
na
na
+6-10.5 kl
na
na
na
3.99
4.32
5.83
+12-20 kℓ
6.50
7.10
7.81
na
Na
Na
+10.5-20 kl
na
na
na
8.51
9.22
10.60
+20-40 kℓ
9.63
10.52
11.57
na
Na
Na
+20-35 kl
na
na
na
12.61
13.66
15.70
+40-50 kℓ
11.90
12.99
14.29
na
Na
Na
+35-50 kl
na
na
na
15.58
16.87
19.40
+50 kℓ
15.70
17.14
18.85
20.55
22.25
25.58
Domestic cluster:>6kl
6.52
7.12
7.83
8.62
9.33
n/a
+6-20 kℓ
n/a
n/a
n/a
n/a
n/a
9.07
+20 kℓ
n/a
n/a
n/a
n/a
n/a
17.55
Commercial
6.95
7.59
8.35
9.18
9.93
11.42
Industrial
6.95
7.59
8.35
9.18
9.93
11.42
Schools/sport
6.14
6.70
7.37
8.11
8.78
10.09
Government
6.59
7.20
7.92
8.71
9.43
10.85
Municipality
6.14
6.70
7.37
8.11
8.78
10.09
Miscellaneous
6.59
7.20
7.92
8.71
9.43
10.85
Misc (external)
7.88
8.60
9.46
10.41
11.27
12.96
Bulk Tariff
2.37
2.59
2.59
2.85
3.02
3.22
2.181
SANITATION TARIFFS (Rands)
Domestic Full:0-4.2 kℓ
-
-
-
-
-
-
+4.2-8.4 kℓ
3.78
4.01
4.29
na
na
na
+4.2-7.35 kl
na
na
na
4.67
5.05
5.81
+8.4-14 kℓ
8.04
8.52
9.12
na
Na
Na
+7.35-14 kl
na
na
na
9.94
10.76
12.38
+14-28 kl
8.79
9.32
9.97
na
Na
Na
+14-24.5 kl
na
na
na
10.87
11.77
13.53
+28-35 kℓ
9.23
9.78
10.46
na
Na
Na
+24.5-35 kl
na
na
na
11.41
12.36
14.21
Industrial & Commercial
5.65
5.99
6.41
7.05
7.63
8.78
Departmental/Municipal
5.20
5.51
5.90
6.49
7.03
8.08
Domestic Cluster (>4.2 kℓ)
9.10
9.65
9.65
9.65
10.45
n/a
+4.2-14 kℓ
n/a
n/a
n/a
n/a
n/a
9.05
+14-35 kℓ
n/a
n/a
n/a
n/a
n/a
15.04
Tariff increases have been set higher than inflation during the last number of years due to
the escalated focus on repairs and maintenance of current infrastructure as well as the
growth in the capacity requirement in the capital infrastructure programme.
As we get closer to requiring an augmentation scheme, the tariffs will have to be reviewed in
order to cover costs of augmentation. This awareness that we will constantly be faced with a
decision of when, what method and cost of any scheme that will be implemented.
10.3.1.1. Fixed charges: residential (per month) for water
There are no fixed charges for the residential customers of water.
10.3.1.2. Fixed charges: residential (per month) for sanitation
There are no fixed charges for the residential customers of sanitation.
10.3.1.3. Volume charges or other charge mechanisms: residential sanitation
Refer to Table 9: The Historic Tariffs of Water and Sanitation Services
2.182
10.3.1.4. Block tariffs: residential (R/k) for water
Refer Table 10.1.9.
10.3.1.5. Future trends and goals (tariff and charges)
Table 10: Proposed Tariffs for Water Services Consumption (10%)
TARIFFS 2012/13
Domestic Full
Water that is used predominantly for domestic
purposes and supplied to single residential
properties.
0 ≤ 6 kl
> 6 ≤ 10.5 kl
> 10.5 ≤ 20 kl
> 20 ≤ 35 kl
> 35 ≤ 50 kl
> 50 kl
Domestic Cluster – Bulk metered flats, cluster developments including single title and
sectional title units. An allowance of 6 Kl per unit per month at zero cost upon
submission of affidavits stating the number of units. 0 ≤ 6 kl
> 6 ≤ 20 kl
> 20 kl
R 0.00
R 5.83
R 10.60
R 15.70
R 19.40
R 25.58
R 0.00
R 9.07
R 17.55
Source: Water and Sanitation Billing.
Table 11: Proposed Tariffs for Sanitation Services
TARIFFS 2012/13
Domestic Full - Single residential properties.
0 < 4.2kl
>4.2 < 7.35kl
70% of water consumption to a maximum of 35 kl >7.35 < 14kl
of sewage per month (70% of 50 kl water equals
35 kl of sewage)
>14<24.5kl
>24.5< 35kl
Domestic Cluster - Bulk metered flats, cluster developments. Including sectional and
single title units. 0 < 4.2kl
>4.2<14kl
>14< 35kl
R 0.00
R 5.81
R 12.38
R 13.53
R14.21
R0.00
R 9.05
R15.04
Source: Water and Sanitation Billing.
10.3.1.8. Volume charges or other charge mechanisms: residential sanitation
Changes to the width of the steps within the block tariff and the level of subsidisation has
commenced in response to volumetric trends / risk of revenue generation within the current
block structure.
10.3.1.9. Block tariffs: residential (R/k) for water
The width of the steps within the block tariff was changed in response to volumetric trends /
risk of revenue generation within the current block structure.
2.183
10.3.2. Strategic analysis (tariff and charges)
The tariffs are modelled every year and changes in consumption patterns are factored into
the annual adjustments. Increasing expenditure will require increasing tariffs.
Overall expenditure is expected to increase in excess of 10% during the financial years to
follow.
Increasing expenditure will require increasing tariffs. Request to increase the tariffs in line
with MTREF modelling to meet increasing requirements. Reduction in water demand due to
water demand management strategy may affect income received. Monitor reduction in
consumption and income and adjust tariffs accordingly. Free basic water is provided to all. In
addition Indigent households receive a credit of R42.0 pm on their water and sanitation
account. This enables them to use 10.5 Kl of water and dispose of 7.35 Kl of sewer for free.
In addition, in order to reduce indigent households' water consumption, there is a program to
repair plumbing leaks and install water management devices.
10.3.3. Implementation strategies (tariff and charges)
Implementation Strategies are outlined below:

Request to increase the tariffs in line with MTREF modeling to meet increasing
requirements.

Monitor reduction in consumption and income and adjust tariffs accordingly.
The tariffs are modelled every year and changes in consumption patterns are factored into
the annual adjustments. Increasing expenditure will require increasing tariffs.
Overall expenditure is expected to increase in excess of 10% during the financial years to
follow.
There will be on-going analysis of the changing water consumption and wastewater
discharge patterns to ensure that income will be sufficient.
In order to ensure that Water and Sanitation Services is able to meet the infrastructure and
other challenges, above inflation increases in the average tariff will be required.
2.184
Over the period income from user charges are projected to increase.
This assumes a city growth of 1.0% per annum (of revenue generating sales), annual
increase in water demand (low water demand curve), an inflation rate of 5.6% and that the
10% restriction will continue for the next 5 years.
The reduction in revenue generating demand as a result of the WC&DM Strategy will result
in higher increases in the average tariff although not a high average cost to the consumer. In
other words the projected income from the user charges will remain the same but because of
the lower water consumption the average tariff will increase.
10.4. Free basic water
10.4.1. Situation assessment (free basic)
10.4.2. Subsidy targeting approach for free basic water
The first 6 kilolitres of water supplied to all residential dwellings in the municipal area and
the first 4.2 kilolitres of sewage removed from all residential dwellings in the municipal area
is free. Fixed charges do not apply to dwellings occupied by domestic households.
A R42 Indigent Grant is applicable to the water and sanitation tariff for qualifying
households. The net result is that an Indigent household can consume an additional 4.5kl
water per month and can discharge an additional 3.15 kilolitres wastewater per month (with
sewerage disposal 70% of water consumption) without attracting any charges.
This subsidy would be ineffective without the ongoing Integrated Leaks Repair and Fixit
Projects aimed at repairing leaks, reducing consumption, reducing monthly bills and
eliminating arrears of properties occupied by Indigent households. (Refer to the Water
Conservation and Demand Management Strategy.)
2.185
10.4.3. Subsidy targeting approach for free basic sanitation
The first 4.2 kilolitres of sewerage removed from all residential dwellings in the municipal
area is free. A R42.0 Indigent Grant is applicable to the water and sanitation tariff for
qualifying households.
The net result is that an Indigent household can discharge an additional 3.15 kilolitres per
month (with sewerage disposal 70% of water consumption) without attracting any charges.
10.4.4. Future trends and goals (free basic)
10.4.4.1. Subsidy targeting approach for free basic water
No changes to the existing structure are planned. The approach of free basic water to all
may need to be investigated in the near future.
10.4.4.2. Subsidy targeting approach for free basic sanitation
No changes to the existing structure are planned. The approach of free basic sanitation to all
may need to be investigated in the near future.
10.4.5. Strategic gap analysis (free basic)
While the tariff structure is aligned to the needs of the indigent and a significant number of
leak repairs have been done, leaking plumbing continues to result in higher water
consumption and sewerage disposal.
10.4.6. Implementation strategies
The Integrated Water Leaks Repair and the Fixit Projects are addressing the high water
consumption and sewerage disposal (refer to Water conservation and Demand
Management).
2.186
The Indigent Grant on top of free basic services will be monitored over time and changes
made should it be necessary.
10.6.
Charges and block tariffs: Industrial and Commercial
10.6.1. Situation assessment (charges and block tariffs)
Refer to 10.6.1.1
10.6.1.1. Fixed charges and block tariffs: industrial for water (per month)
There are no blocks in the tariff for industrial users.
Fixed services charges are in place for water supplied to industrial properties based on the
size of the meter.
10.6.1.2. Fixed charges and block tariffs: industrial for wastewater (per month)
There are no blocks in the tariff for industrial users.
There are no Fixed Charges in place for water supplied to industrial properties.
10.6.1.3. Fixed charges and block tariffs: commercial for water (per k)
As for Industrial.
10.6.1.4. Fixed charges and block tariffs : commercial for wastewater (per month)
As for Industrial.
10.6.1.4. Fixed charges and block tariffs: Other (water)
The other tariffs for water are:

School / Sports

Government

Municipal

Miscellaneous

Miscellaneous external

Bulk Tariff
2.187
10.6.1.4. Fixed charges and block tariffs: Other (sanitation)
As for Industrial.
Sanitation is charged at a rate per kl discharged. The volume discharged is assumed to be
95% of the water consumed. The Director: Water and Sanitation can adjust the percentage
based on measurements taken.
10.6.2.
Future trends and goals (charges and block tariffs)
10.6.2.1. Fixed charges and block tariffs: industrial for water
Table 12: Proposed Tariff Commercial and Industrial Water
TARIFFS 2012/ 2013
Commercial – Water supplied to premises predominantly
of a commercial nature
R 11.42
Industrial - Water which is used in manufacturing,
generating electricity, land-based transport, construction
or any related purpose.
R 11.42
Source: Water and Sanitation Billing.
Above inflation increases can be expected in line with the average tariff.
10.6.2.1. Fixed charges and block tariffs: industrial for sanitation
Table 13 inflation increases for tariffs can be expected in line with the average tariff
increases.
10.6.2.2. Fixed charges and block tariffs: commercial for water
No changes to the structure are planned for the future.
Table 13: Proposed Tariff Commercial and Industrial Sanitation
TARIFFS 2012/ 2013
Industrial and Commercial - Schools, hospitals,
Government: National / Provincial and any other – 95% of
water consumption (* see note)
R 8.78
Source: Water and Sanitation Billing.
Above inflation increases can be expected in line with the average tariff.
10.6.2.3. Fixed charges and block tariffs: commercial for sanitation
No changes to the structure are planned for the future.
2.188
10.6.2.4. Fixed charges and block tariffs: Other (water)
No changes to the structure are planned for the future. Above inflation increases can be
expected in line with the average tariff.
10.6.2.5. Fixed charges and block tariffs: Other (sanitation)
Above inflation increases for tariffs can be expected in line with the average tariff.
10.6.2.6. Strategic gap analysis (charges and blocks tariffs)
The current tariff modelling uses the historical water demand in the various categories in
order to ensure that there is sufficient income. The successful implementation of WC &
WDM Strategy will necessitate a revision of the tariffs.
The tariffs are modelled every year and changes in consumption patterns are factored into
the annual adjustments.
10.6.3. Implementation strategies (charges and block tariffs)
The average tariff for water and sanitation are projected to increase by above inflation
annually.
10.7. Income and sales
10.7.1.
Situation assessment (income and sales)
10.7.1.1. Sales arrangements
The billing system is integrated with the SAP computer software. The Water and Sanitation
account is sent monthly with the rates and other services accounts. The City is divided into
20 billing / meter reading areas. Bills are sent out daily in order to cover the whole city in one
month.
Payment for municipal accounts can be easily made at any municipal office, through third
party payments (supermarkets, etc.) and electronic funds transfers (EFTs) or stop orders
through banks.
2.189
10.7.2.
Future trends and goals (income and sales)
10.7.2.1. Total income (and non-payment) and expenditure: water
Table 14 shows the projected income and expenditure of Water and Sanitation services.
Table 14: The Projected Income and Expenditure of Water and Sanitation Services
Rands (R’000)
Total income (billed income and subsidies)
Total expenditure
Surplus/(deficit)
2012/13
5 487 755
5 512 564
2013/14
6 065 281
6 092 272
2014/15
6 505 032
6 505 032
(24 809)
(26 991)
0
Source: Water and Sanitation Billing.
This assumes a city growth of 1.0% per annum (of revenue generating sales), a 2% annual
increase in water demand (low water demand curve), an inflation rate of 5.6% and that the
10% restriction will continue for the foreseeable future.
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10.7.2.2. Sales arrangements
The Credit Control and Debt Management Policy were updated during the 2011/12 Financial
Year.
10.7.3.
Strategic gap analysis (income and sales)
The gaps are:
•
Many indigent households have high municipal debt due to previous or on-going water
leaks on their property that discourages them from paying the current account.
•
Capacity for disconnections / restrictions and reconnections
•
There is a difference between the number of properties being disconnected/ restricted
and those being reconnected.
10.7.4.
•
Implementation strategies (income and sales)
The focus of the leaks project is to assist such indigent households. These households
are also encouraged to make arrangements (reasonable terms) with Council on arrears
in order to get the current accounts paid.
•
Internal teams appointed to increase debt management actions.
•
Programme in place to regularly update these properties and to ensure inclusion in
future debt processes. Programme to standardise the meters in the long term. Reports
are being put in place to identify tampered meters and take corrective action.
10.8.
Metering and Billing Urban
10.8.1
Situation and assessment (metering and billing)
10.8.1.1. Metering and billing: urban
Meter Verification and Meter Accuracy
The CCT is committed to ensure, through its accredited Meter Verification Laboratory, that
each metered customer has the right and recourse to challenge the accuracy of its meter
through a process as provided for in terms of the Trade Metrology Act and the SABS 15291:2003.
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Meter Management and Billing
The CCT is committed to reading and billing all consumers monthly and has provided a line
of communication for customers to lodge any queries in respect of their accounts through the
Corporate Call Centre. Water and Sanitation Services deal with the management of the
water meter, its accuracy and the preparation of the customer’s account before invoicing by
the Corporate Finance Department.
Meter Reading
The CCT currently reads on average approximately 85% of the 620 000 water meters, while
the balance is estimated in the months that actual readings cannot be obtained.
Consolidated monthly statistics on the following is collected:

Meters installed

Meters replaced

Meters relocated / refixed

Meters stolen

Meter connections removed

Leaking meters repaired
10.8.1.2. Metering and billing: rural
Refer to 10.8.1.1.
10.8.2.
Future trends and goals (metering and billing)
10.8.2.1. Metering and billing: urban
Water and Sanitation Services has set a target to reduce the number of estimated readings
to 12% by 2013 and to progressively eliminating repeated estimations.
10.8.2.2. Metering and billing: rural
Refer to 10.8.2.1.
10.8.3. Strategic gap analysis (metering and billing)
There are a number of issues that need to be addressed:

Estimated readings still below target.

The existence of properties that is unbilled.
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10.8.4. Implementation and strategies (metering and billing)
 Increase of capacity via updated tenders for meter reading contract. Specific focus of
problematic meters, e.g. covered by building rubble. Program to systematically move
meters to the outside of the properties

Programme in place to identify zero consumption meters as well as "low reads" as part
of meter replacement programme.

On-going program to clean up customer data

Incorporate the loading of meters into the process and ensure that Developer is billed in
the interim period.
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