RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Board Report 6. Tariff determination

2023 Actual

2022 Actual

2021 Actual

2020 Actual

2019 Actual

Bulk Tariffs

price R per kl

11,62

10,68

10,09

10,09

9,35

Other tariffs baseline is bulk tariff rate and stepped up to

price R per kl

23,83

21,82

20,06

18,95

18,95

Tariff increase 12,20 Rand Water tariffs are determined in line with the guidelines set in Section 34 of the WSA. They include the recovery of all operational expenditure including the abstraction, purification, pumping and distribution costs. It also includes the recovery of refurbishment of existing infrastructure but excludes the expenditure on all augmentation projects that are funded through the issuance of Rand Water bonds. Rand Water’s current gazetted tariff is 1162 cents per kilolitre which is 8.8% tariff increment for the financial year 2022/23. This necessitated a revision of the planning processes to align operational expenditure to the lower revenue base. The 5.8% increase in 2022 and 8.8% for 2023 and 9.2% has been approved for 2024, indicates prospects of returning to normality in an operating environment that has an annually increasing cost base. The established Economic Regulator limits any political concerns in respect of tariff determination. % 8,80 5,80 - 7,90

The tariff setting and approval follows the following annual cycle:

a. Department of Water and Sanitation (DWS)/Trans Caledon Tunnel Authority (TCTA) raw water tariff consultations

30 September

b. Rand Water Board approval of potable water tariffs

07 October

c. Customer consultations, notifications and feedback

October to January

d. Submission to DWS for Parliamentary approval of potable water tariffs

25 January

e. Parliamentary approval

15 March

f.

Tariff implementation

01 July

7. Financial Results The financial results for the year are fully detailed in the consolidated annual financial statements as set out from page 188 to 312. The summary of the Group’s financial, business and operational performance are detailed in sections 8 to 10 of the Board Report, which is inclusive of both continuing and discontinued operations.

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