22
Environment and energy
Regulation of the
water sector
Regulation of the water sector and the use of water is a critical
element of the effective, equitable, and sustainable water
management of water resources and the delivery of sustainable
and appropriate water services.
By Extract from the NWRS 2 by the Department of Water and Sanitation
Regulation oversight
Regulation aims to change the behaviour of water
users and water institutions to ensure the sustainable
and equitable use, protection, conservation, and
development of the nation’s water resources. The
minister, as shareholder in a number of water sector
institutions, plays a role in providing strategic guidance
and oversight to these organisations, which is different
from the regulatory role of various organs of state.
The Department of Water Affairs/Water and Sanitation (DWA/
DWS) regulated water use even under the 1956 Water
Act through, for example, issuing water permits, setting
discharge standards, and regulating dam safety. Under the
National Water Act (NWA) the scope of this regulatory role
has expanded considerably.
In addition, there are now a number of organisations
involved in the regulation of water, as shown in Figure 14,
with different roles and responsibilities spread across this
wide range of functions. Nonetheless, in relation to water
resources, the DWA plays the major role, although elements
of these regulatory functions will be transferred to Catchment
Management Agencies (CMAs) in due course. The DWA’s
mandate is derived from the Constitution, the NWA, and the
Water Services Act, 1997 (Act No. 108 of 1997).
Successful implementation of the broader scope of
regulation under the NWA remains a challenge that must
be addressed by the DWA/DWS and other water sector
institutions over the next period.
The scope of water regulation encompasses:
• Water use authorisation: to ensure the equitable and
sustainable use of water in the public interest. Water
use may be authorised (or permissible) in terms of
Schedule 1 of the NWA, a general authorisation, an
existing lawful use, or in terms of a water use licence.
May 2017 Volume 23 I Number 3
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Drinking water quality and wastewater discharge
regulation: which ensures minimum standards for
drinking water provision and for wastewater discharge,
regulated through programmes such as the Blue Drop
and Green Drop certification programmes and through
national minimum norms and standards.
Infrastructure regulation: to ensure that water
infrastructure is functional, properly operated and
maintained, appropriate for present and future needs,
meets public health and safety standards, and is
sufficiently durable for a realistic economic life expectancy.
This includes dam safety regulation to ensure the ongoing
protection of public health and safety in relation to dams with
a hazard potential.
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Regulation of corporate governance: in water. There is an
ongoing programme of inspections of dams with a safety
risk. The DWA undertakes remedial work on departmental
dams requiring such, while remedial work on other dams
(including private dams) is undertaken by owners of
dams that do not comply with one or more of the many
safety criteria set in the Dam Safety Regulations.
Economic and social regulation:
• A pricing strategy for raw water use has been gazetted,
implemented, and is being reviewed.
• Norms and standards for water services tariffs have
been gazetted.
• A project to determine suitable institutional
arrangements for economic regulation from source to
tap and back to source has been initiated.
• The DWA has undertaken a compliance survey of
municipality water services tariffs against the relevant
norms and standards. This survey indicates that
almost all municipalities provide free basic water and
use stepped tariffs that are pro-poor and promote
water conservation.
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