- Punitive Tariffs for the People, Impunity for the Municipality: An Unfair Trade
- Beyond the Meter: Why South Africa’s Water Tariff System Fails to Hold Municipalities Accountable
- The Missing Financial Link: Why Abstraction Limits Don’t Result in Municipal Penalties
- Systemic Inequality: Challenging the Fairness of Consumer-Focused Water Restrictions
Oftentimes we accept the doings and screwings of our lords and masters* without critically examining the fairness of what is imposed upon us.
Take the Nelson Mandela Bay Municipalities Inclined Block Tariff for Water Consumption – often referred to as ‘punitive tariffs’.
One would think that these tariffs are in reaction to increasing tariffs imposed upon our Municipality over extracting from our dams. If you did think so then you would be wrong I am afraid.
Brace yourself – when you are finished reading this you may be incensed enough to engage in a bit of keyboard warrior action, maybe you will write or phone your Councillor, maybe you will write on the Municipalities Facebook Wall, maybe you will grab a stick and your latest empty Takealot cardboard box to support your protest…
But – all through this remember the following: Municipalities do not pay for over extraction but consumers do and, in many cases municipalities pay for their allocation not for their over extraction, which consumers don’t.
Are There Any Punitive Tariffs in Place for When Municipalities Over Extract?
The short answer is no, there are no standard “punitive tariffs” that function as an automatic financial penalty if a municipality extracts more water than their licensed daily limit.
While exceeding a licensed water extraction limit is unlawful under the National Water Act, the reality of how this is governed in South Africa is far more complex and often lacks direct financial enforcement.
Here is a breakdown of why this is the case:
The Legal Framework vs. Enforcement
Illegal, but not “Penalized” by Tariff: Exceeding an abstraction limit is a breach of a water use authorization. However, there is no mechanism in the National Pricing Strategy for Raw Water Use Charges that imposes a “fine” or “punitive tariff” per kilolitre for over-abstraction.
Pricing based on Allocation, not Use: The Department of Water and Sanitation (DWS) generally sets raw water charges based on a municipality’s licensed allocation, not necessarily their actual metered usage. This means that even if a municipality extracts more than they are allowed, they are typically billed for their legal allocation, not the excess volume.
Why “Punitive Tariffs” Don’t Exist in This Context
Accountability Gaps: As highlighted by recent oversight and watchdog reports, there is often no central, real-time repository of water use data. The DWS frequently struggles to monitor exactly who is over-extracting because the necessary metering and reporting infrastructure is either absent or not consistently updated.
Constitutional Complexity: Municipalities are a “sphere of governance” rather than a subordinate tier. This makes it legally complex for the national department (DWS) to simply “fine” another organ of state without a lengthy administrative, compliance, and enforcement process.
Focus on Compliance, Not Revenue: The DWS uses regulatory tools—such as compliance notices, directives, or court orders—to force a municipality to return to their licensed limits. If a municipality persistently over-extracts, the DWS is supposed to launch a compliance monitoring and enforcement process, but this is a legal/administrative process rather than a simple tariff increase.
What Happens Instead?
When municipalities exceed their extraction limits, the response is generally operational or legal, not financial:
Directives and Compliance Notices: The DWS may issue a directive compelling the municipality to reduce demand, implement water restrictions, or upgrade infrastructure.
Curtailment: In extreme cases, the DWS may physically limit supply or use court-imposed limits to force compliance.
Infrastructure Stress: The “punishment” is often borne by the citizens in the form of water shortages, “day zero” scenarios, or the need for strict, mandatory water restrictions to avoid total system failure.
Contrast: The Present ‘Punitive Tariffs’ for Consumers
The Nelson Mandela Bay Municipality (NMBM) implements a stepped tariff structure rather than a single, separate “punitive” fee. In this structure, the cost per kilolitre (kl) increases significantly as a consumer moves into higher usage “steps.”
While the municipality often refers to this as a “punitive tariff structure” in budget reports—aimed at curbing high consumption during drought conditions—it is technically an increasing block tariff (IBT).
The 2025/2026 Tariff Structure (Residential)
According to the approved 2025/2026 tariff booklet, residential water consumption is billed based on daily usage tiers. As your consumption increases, the rate per kilolitre jumps significantly:
| Tier (Daily Usage) | Cost per kl (Excl. VAT) |
| Step 1: 0 – 0,3 kl/d | R 20,58 |
| Step 2: > 0,3 – 0,5 kl/d | R 22,32 |
| Step 3: > 0,5 – 0,8 kl/d | R 31,20 |
| Step 4: > 0,8 – 1,0 kl/d | R 53,85 |
| Step 5: > 1,0 – 1,6 kl/d | R 98,48 |
| Step 6: > 1,6 kl/d | R 131,31 |
The “punitive” nature of this system is that Step 6 costs over six times more per kilolitre than Step 1. A household that consumes high volumes is essentially paying a massive premium, which the municipality uses to encourage conservation and generate revenue to manage the overall system.
Budget reports from 2025 indicate that the NMBM relied on this structure to help reduce arrear water debt. By penalizing high consumption through these high-tier steps, the municipality offsets the financial pressure caused by low collection rates and high system demand.
Metering Solutions:
There are a number of options when it comes to private water metering solutions – normally in a landlord-tenant situation:
Prepaid Metering – Chat to Straton Electrical or peruse the options here: Stratlec Prepaid – with these meters you have a management and payment collection in place. Tenants have to pay Online or at any EasyPay outlet for water access, that money passes to your designated Payment Processor who will pay the funds out once monthly.
Private Metering – Have a look at the Shelly FrankEver Smart Water Valve DN15 which is a motorized ball valve designed for intelligent water management. Unlike traditional “smart valves” that simply clamp onto an existing manual handle, this is a dedicated, high-precision replacement valve powered by ShellyX technology. It allows you to control your water supply, irrigation, or pool systems directly from the Shelly Smart Control app without needing an external hub. With this meter you will need to generate monthly invoices and collect the payments yourself.
For example: A client used this water meter as follows – In a new kitchen island, there will be no ‘visible’ tap, this will be used via Alexa to turn the ‘tap’ on and off.
#EndPunitiveTariffsNow:
The Bottom Line: the “punitive” burden is placed squarely on the end-user through consumption-based pricing, regardless of the municipality’s own efficiency in managing the bulk water supply.
* A nod to those of us of a certain age who will remember the Ghost Town that was Port Elizabeth every Tuesday night when the whole nation was glued to the screens watch the “Doings and Screwings on Dallas!”
