Rand Water | Integrated Annual Report 2025

Consolidated Annual Financial Statements for the year ended 30 June 2025

BOARD REPORT (CONTINUED)

5. Non-Executive Board Members

In terms of Section 35 (1) of the WSA, the Minister of Water and Sanitation (Minister) may appoint members of the Board from time to time. The term of office of the Board is regulated in accordance with Schedule 1 of the WSA. The Board of Rand Water was appointed by the Minister effective 21 September 2022 with the term expiring on 21 September 2026. The Minister appointed a gender balanced Board, comprising of individuals who collectively possess a diverse range of competencies including science, engineering, governance, accounting and finance. The current Board members are: • Mr. Ramateu Monyokolo (Chairperson) • Ms. Malande Tonjeni (Deputy Chairperson) • Mr. Simphiwe Khondlo • Mr. Luvuyo Ntoyi • Mr. Anthony Mhlongo • Ms. Lethabo Mashamaite • Ms. Boitumelo Mahuma-Madida • Mr. Solomon Mngomezulu • Mr. Gcinumzi Qotywa • Ms. Zanele Monnakgotla • Ms. Phindile Mbanjwa* • Ms. Clarinda Simpson

* Ms. Phindile Mbanjwa was appointed as a member effective from 11 June 2024.

Further details on the composition of the Board in office for the financial year under review are detailed in Note 34 in the Notes to the Consolidated Annual Financial Statements.

6. Tariff determination

2025 Actual

2024 Actual

2023 Actual

2022 Actual

2021 Actual

Bulk Tariffs

R/kl R/kl

13.31 25.00

12.68 23.83

11.62 21.82

10.68 20.06

10.09 18.96

Other tariffs baseline is bulk tariff rate and stepped up to

Tariff increase

%

4.90

9.20

8.80

5.80

-

The tariffs are determined in accordance with the guidelines set out in Section 34 of the WSA. They are structured to recover all operational expenditure, including the costs of abstraction, purification, pumping, and distribution. In addition, tariffs provide for the recovery of costs related to the refurbishment of existing infrastructure, but exclude expenditure on augmentation projects, which are funded through the issuance of bonds. The entity’s current gazetted tariff is 1331 cents per kiloliter, reflecting a 4.90% tariff increase for the current financial year. While this increment provided much-needed relief to customers and covered operational costs, it poses challenges going forward. The 2025/2026 financial year reflects a significantly higher projected tariff of 1541 cents per kiloliter, largely driven by the anticipated increase in the 2026 raw water tariff.

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Rand Water | Integrated Annual Report 2025