28 August 2014

Not Enough Water or a Lack of Willingness to Manage Water Sustainably?

7

Management

Awareness

Poorly Maintained Infrastructure

Johannesburg Residential

Consumers

eThekwini Residential

Consumers (Property value

under R250,000)

eThekwini Residential

Consumers (Property value

over R250,000)

Cost of water Inc. VAT Cost of water Inc. VAT Cost of water Inc. VAT

6 kilolitres 6 kilolitres R 0.00 6 kilolitres R 12.29

10 kilolitres R 26.63 10 kilolitres R 14.01 10 kilolitres R 120.71

15 kilolitres R 79.47 15 kilolitres R 84.06 15 kilolitres R 190.77

20 kilolitres R 226.64 20 kilolitres R 154.12 20 kilolitres R 260.82

30 kilolitres R 418.85 30 kilolitres R 317.48 30 kilolitres R 424.18

40 kilolitres R 622.68 40 kilolitres R 605.21 40 kilolitres R 711.92

60 kilolitres R 1 122.23 60 kilolitres R 1 223.95 60 kilolitres R 1 330.65

Non-Revenue Water Bulk Water Tariffs

Johannesburg 34% Rand Water R 6.29 /m3

eThekwini 30% Umgeni Water R 5.36 /m3

Does South Africa Value its Water?

Picture

R96 000

R33 000

R3 000

How much per m3?

± R22,500 /m3

What is the value of water that goes into

1 m3 of Coke?

± R50 /m3

Does anyone say that Coke should sell

below cost of production?

What would be the effect of consistently

selling below cost of production?

2400

2600

2800

3000

3200

3400

3600

3800

2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

Yie

ld /

Wat

er

Re

qu

ire

me

nts

(m

illio

n m

3 /

an

nu

m)

Years

18

High Water Requirement Scenario with

Water Conservation and Demand Management

Polihali Dam Yield

First transfer from LHWP Phase II

High with target

WC/WDM

Mine Water: Neutralisation and

discharge Unlawful removed

Deficit

Yield reduction due to

dilution releases

Short-term

excess yield

R 1.70

R 2.01 R 3.58

R 6.41

R 9.15

R 0.00

R 1.00

R 2.00

R 3.00

R 4.00

R 5.00

R 6.00

R 7.00

R 8.00

R 9.00

R 10.00

0

100

200

300

400

500

600

700

800

900

Storage (Dam) In Transit (River) Purification andBulk Distribution

Retail Distribution Consumer

R/c

ub

ic m

etr

e

Mil

lio

n C

ub

ic M

etr

es

Distrubution Phase

Typical Water Value Chain, as-is in 2010

Volume Lost (million cubic metre) Volume Transferred (million cubic metre)

Cost (R/cubic metre)

Richard Holden

Business Analyst

e-mail: rholden@tcta.co.za

Telephone: (012) 683 1200

Website: http://www.tcta.co.za