African Water Development Report 2006 - United Nations Economic ...

Supply Company the cost is P 4.04/ m 3 while inother villages it is P 2.71/ m 3 . The average unitcost increases by more than 50 per cent if themonthly consumption doubles (except in ruralvillages).In South Africa (AWDR National Report,2005), water use charges are based on demandside strategy of integrated water resource managementwhich allows for:(a) Funding water resources management;(b) Funding water resource development anduse of waterworks; and(c) Achieving equitable and efficient allocationof water.The Government has therefore introduced a policyfor the pricing of potable water making thefirst 6m 3 /household/month free.Predominant Types of Water SupplyBlock Tariffs in AfricaMany African countries have adopted the blocktariff system with the aim of reconciling the economicgood status of water with its social value.The main problem is how to determine what canbe considered as the socially necessary volume ofwater per person to cover household needs andpersonal hygiene on the basis of which Governmentsshould fix the minimum value. From theAWDR national reports, apart from Mauritiuswhich uses a multiple step block tariff system,the systems more widely used are the two andthree block systems (tables 12.3, 12.4 and 12.5).Botswana and South Africa use the two blocksystem while Cameroon and Mauritania use thethree tier tariff.VALUING WATERTable 12.3: Two Block Tariff SystemAverage unit tariff for two monthly consumption levels (Pula/m3; 2004 tariffs). BotswanaDomestic- business20m 3Domestic- business40m 3Government20m 3Government40 m 3Gaborone 4.69 7.60 9.59 15.38Rural villagesNSWC supplied4.04 6.92 12.26 21.03Rural villages 2.71 4.66 12.05 12.05National Potable Water Tariff Survey in South AfricaTariff 20-60 kl/monthTariff > 60 kl/monthAv. Min. Max. Av. Min. Max.R 3.60 R 0.00 R 15.57 R 3.94 R 0.00R15.57NOTE: The tariffs reported here are population-weighted averages of municipal retail tariffs adjusted/escalated to 2004SOURCE: DWAF Annual report. 2003/04 Table 3.1287