Stakeholders Presentation on 2022/23 Tariff Structure
Consultation with stakeholders on the proposed Water Resource Management Charges for the 2022/23 financial year by the Breede-Gouritz Catchment Management Agency. The presentation covers operational capacity, strategic priorities, tariff process, and budget planning processes aligned with National Treasury regulations. The agency's staff makeup and tariff consultation details are also outlined.
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Tariff Structure 2022/23 Presentation to Stakeholders June 2021
2022/23 TARIFF STRUCTURE OUTLINE OF PRESENTATION Introduction Operational Capacity Strategic Priorities Tariff Process Budget 2022/23 Proposed Tariffs Conclusion
2022/23 TARIFF STRUCTURE INTRODUCTION The purpose of the meeting is to consult with stakeholders on the proposed Water Resource Management Charges for the 2022/23 financial year as per s(57)(1)(a)(i) and (2) of the National Water Act. The Breede-Gouritz Catchment Management Agency (BGCMA), established in terms of Section 78 of the National Water Act 36 of 1998 (NWA), performs water resource management in the Breede-Gouritz Water Management Area (WMA) as contemplated in the National Water Act.
OPERATIONAL CAPACITY The BGCMA has the following inherent functions in terms of section 80 of the National Water Act: Investigate and advise interested persons on water resource management Compilation of the Catchment Management Strategy Co-ordinate related activities of water users and WMIs Promote co-ordination of implementation of any applicable development plan Promote community participation in water resource management
STRATEGIC PRIORITIES The BGCMA has 7 Programmes that support the Strategic outcomes of the BGCMA: Water resources planning Water use management Institutional and Stakeholder relations Water allocation reform Resource protection Strategic support, which includes finance, human resources and administration Management & governance
STAFF MAKE UP Senior Management: 2 Professional Qualified: 62 Semi-Skilled: 1 Total staff: 65
TARIFF PROCESS BUDGET PLANNING PROCESSES : Aligned to National Treasury regulations MTEF/ENE Cost of activities are based on zero based budgeting and economic fundamentals (such as CPI, PPI etc.) PRICE SETTING PROCESS. Considers demand, registered volumes, yield volumes, assurance, prior years tariff capping and budgeted costs Consultation process Sector Consultation - 16th August 2021 National Consultation 25th August 2021 Approval by Minister of Water and Sanitation in consultation with the Minister of Finance.
BUDGET 2022/23 Description Budget 2020/21 Actual Expenditure 2020/21 Current Budget 2021/22 Proposed Budget 2022/23 %Budget Increase Employee Costs 45,219,955 44,798,617 51,212,393 53,080,287 4% 29,685,820 Goods and services 19,867,328 14,076,066 21,627,897 37% 59 ,368 Repairs and Maintenance 125,174 123,530 123,888 -52.% Capital Outlay 1,961,500 1,474,457 1,244,839 1,226,650 1% Board related costs 1,043,508 752,873 897,600 947,875 6% TOTAL BUDGET 68,092,291 61,225,543 75,106,617 85 000 000 13%
REASONS FOR BUDGET INCREASE EMPLOYEE COSTS - Provision is being made for the appointment of a permanent CEO and the employment of additional staff in both the areas. - Operational overheads increase linked to CPI - An additional projects the institution intends to embark on and Public participation projects are planned. GOODS AND SERVICES CAPITAL EXPENDITURE - As a result of the move to new premises, expenditure on furniture, IT equipment and Office equipment is planned.
MAJOR EXPENSES INCLUDED IN GOODS AND SERVICES River rehabilitation projects (Removal of invasive alien vegetation) Monitoring of Water Resources Rain Water Harvesting (Tanks) Validation and Verification of water use (Confirmation of lawful water use)
BREEDE-GOURITZ CMA SOURCES OF FUNDING Current Budget 2021/22 Budget 2022/23 % Increase OPERATIONAL ACTIVITIES AUGMENTATION FROM THE DEPARTMENT OF HUMAN SETTLEMENT , WATER AND SANITATION 40,625,000 50,309,952 23.84% WATER RESOURCE MANAGEMENT CHARGES - 34,481,640 34,690,048 0.6% BGCMA WATER RESOURCES MANAGEMENT CHARGES FROM BERG OLIFANTS 75,106,640 85,000,000 13.17% TOTAL
PROPOSED TARIFFS Tariffs Domestic and Industrial Agriculture Forestry 2021/22 Tariff 5.48 2.49 1.27 Proposed Increase 0.03 0.17 0.09 2022/23 Proposed Tariff 5.51 2.66 1.36 % Contribution to Income 22,19% 77,23% 0.49% Cost Covering Tariff 5.51 5.51 5.51 Volumes Cubic Metre 185 425 936 1 339 645 098 16 636 343 Total Volumes Cubic Metre 1 541 707 377
CONCLUSION The Breede Gouritz Catchment Management Agency is proposing an average increase of 6.7% on the water tariff charges for Agriculture and Forestry and full cost for Domestic and Industrial. The Agricultural and Forestry sectors are subsidised by Government to the rate of 57.84% In the calculations the limitations and restrictions for increases are considered as stipulated in the pricing strategy.
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