e r 2 - Umgeni Water

| Financial Plan ChapterTable 15.9: Tariff Cost ComponentsComponents 2007/2008 2008/2009 2009/2010 Budget2010/2011 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016Tariff Change Tariff Change Tariff Change Tariff Change Tariff Change Tariff Change Tariff Change Tariff Change Tariff Change Tariff ChangeR.c/kl % R.c/kl % R.c/kl % R.c/kl % R.c/kl % R.c/kl % R.c/kl % R.c/kl % R.c/kl % R.c/kl %Direct CostsChemicals 0.056 10% 0.070 27% 0.069 (2%) 0.072 11% 0.082 19% 0.087 7% 0.093 6% 0.098 5% 0.103 5% 0.107 5%Depreciation 0.123 (11%) 0.138 12% 0.147 7% 0.195 27% 0.163 11% 0.160 (1%) 0.171 6% 0.180 6% 0.189 5% 0.198 5%Energy * 0.084 27% 0.092 9% 0.118 29% 0.178 39% 0.186 58% 0.209 12% 0.266 27% 0.294 11% 0.324 10% 0.343 6%Maintenance* 0.175 25% 0.219 25% 0.232 6% 0.247 1% 0.235 1% 0.233 (1%) 0.248 6% 0.261 5% 0.273 5% 0.286 5%Raw Water 0.184 (2%) 0.187 2% 0.197 5% 0.239 13% 0.243 23% 0.369 52% 0.424 15% 0.467 10% 0.514 10% 0.565 10%Staff Costs 0.161 1% 0.176 10% 0.193 9% 0.217 13% 0.215 12% 0.236 10% 0.254 8% 0.269 6% 0.284 6% 0.299 5%Other direct operating activities 0.020 87% 0.008 (58%) 0.022 169% 0.022 6% 0.024 0% 0.019 (19%) 0.022 15% 0.025 13% 0.028 13% 0.029 4%Total Direct Costs 0.801 6% 0.890 11% 0.978 10% 1.170 15% 1.148 17% 1.314 14% 1.477 12% 1.595 8% 1.715 8% 1.829 7%Indirect CostsOverheads 0.576 0% 0.491 (15%) 0.596 21% 0.749 18% 0.647 9% 0.698 8% 0.877 26% 0.961 10% 0.895 (7%) 0.947 6%Depreciation 0.031 13% 0.030 (3%) 0.035 16% 0.044 30% 0.050 45% 0.071 41% 0.080 12% 0.110 38% 0.122 11% 0.102 (16%)Amortisation 0.227 (15%) 0.225 (1%) 0.232 3% 0.218 (6%) 0.228 (2%) 0.007 (97%) 0.007 0% 0.007 0% 0.007 0% 0.007 0%Impairments - - 0.005 - 0.023 392% - - 0.210 814% 0.232 10% 0.228 (2%) 0.194 (15%) 0.152 (22%) 0.094 (38%)Total Indirect Costs 0.833 (4%) 0.751 (10%) 0.886 18% 1.011 13% 1.135 28% 1.009 (11%) 1.192 18% 1.272 7% 1.176 (8%) 1.150 (2%)Total Direct & Indirect Cost 1.635 1% 1.641 0% 1.864 14% 2.181 17% 2.283 22% 2.322 2% 2.669 15% 2.867 7% 2.891 1% 2.979 3%Finance Costs 0.386 (32%) 0.260 (33%) 0.169 (35%) 0.107 (37%) 0.107 (37%) 0.134 25% 0.133 (1%) 0.139 4% 0.129 (7%) 0.141 10%Cost-Bulk Water 2.021 (8%) 1.901 (6%) 2.033 7% 2.390 18% 2.390 18% 2.456 3% 2.801 14% 3.005 7% 3.020 0% 3.120 3%Contribution from Wastewater 0.007 (58%) 0.012 88% 0.017 37% 0.011 (36%) 0.011 (36%) 0.010 (7%) 0.008 (18%) 0.008 (3%) 0.005 (32%) 0.004 (30%)Contribution from Section 30 activities 0.018 (38%) 0.060 240% 0.050 (16%) 0.016 (69%) 0.016 (69%) 0.020 27% 0.001 (94%) 0.001 (1%) 0.001 (1%) 0.001 (1%)Total Cost 1.996 (7%) 1.828 (8%) 1.966 8% 2.363 20% 2.363 20% 2.426 3% 2.792 15% 2.996 7% 3.013 1% 3.115 3%Surplus Margin/(Deficit) 0.964 44% 1.199 24% 1.260 5% 1.066 (15%) 1.066 (15%) 1.212 14% 1.039 (14%) 1.053 1% 1.255 19% 1.383 10%Total Average Umgeni Water Tariff 2.960 5% 3.027 2% 3.226 7% 3.429 6% 3.429 6% 3.638 6% 3.831 5% 4.049 6% 4.268 5% 4.498 5%* Impact of the operating and maintenance cost of the DWA Dams now included as a raw water cost from F'12From F'12 onward, the cost of operating and maintaining the DWA Dams will not form part of the operating cost structure of Umgeni Water but will be part of the raw water cost in terms of the raw water pricingstrategy.The most significant movements in the direct cost per kl were analysed as follows:Reduction in:R/klEnergy cost attributable to O&M of dams 0.019Maintenance costs attributable to O&M of dams 0.009Staff cost 0.0170.045This represents 19% of the raw water price increase in F'12Umgeni Water Five-Year Business Plan | 2011/2012 to 2015/2016 Page 88