The case for an independent water services regulator
Three recent articles in the media caught my attention : ‘ Broken and ageing water infrastructure in eThekwini ’, ‘ Tender corruption at Rand Water exposed in court case ’, and ‘ Water shortages in Vryheid ’. By Helgard Muller ( Pr Eng )
We all have our ideas on how these typical water problems can be fixed , but the role of regulation is rarely mentioned . An effective and autonomous water service regulator can be a major driver to get us in a better position . Let me motivate by means of a few basic questions and answers .
1 . What is effective water service regulation ?
The overall objectives of water services ( WS ) regulation are clear from various official government policy documents and in summary , according to Chapter 7 of the Strategic Framework for Water Services ( 2003 ), an effective regulator should : “ Protect consumer and public interests by :
• Ensuring compliance with minimum national norms and standards ;
• Ensuring good performance and the efficient use of resources ; and
• Ensuring good contracting practice .”
2 . Do we need a water services regulator in South Africa ?
Some water experts like to argue that water services regulation is only needed when the private sector is involved . These proponents then usually claim that the public , especially the poor , must be protected against the “ bad forces of the private sector ”. There is indeed good motivation to do so , as private sector providers can be so profit driven that assets are run down , tariffs are exploiting the consumer , and the poorest water users are ignored in favour of the rich . These experts then often cite England and Wales as examples where outright privatisation of water services had necessitated a highly sophisticated regulatory regime and well-developed institutions for regulation .
The counter argument for regulation , however , is that public entities , like our municipalities , can also be guilty of all of the abovementioned ills and even many more , as is clear from the daily media reports . Public water service providers can be politically forced to charge unrealistically low tariffs and then collect such a small portion of what is due that no money is left to perform maintenance , not to mention the necessary capital expansion of the supply . Public entities are often guilty of running infrastructure into the ground , with poor people who cannot afford bottled water or private supplies frequently being at the receiving end of pathetic service delivery .
Regulatory obligation
“ The Minister … must monitor the performance of every water services institution in order to ensure ... compliance with all applicable standards prescribed under this Act …” ( Water Services Act , 1997 )
3 . Do we have a water services regulator in place in South Africa ?
Yes , we do : the Department of Water and Sanitation ( DWS ) is established by law as the water services regulator in the country . The Water Services Act , 1997 ( Act No . 108 of 1997 ) determines that the Minister of Water and Sanitation has the duty to monitor the performance of all water institutions , that is , all water boards and municipalities in the country . Section 62 ( 1 ) of the Act states : “ The Minister and any relevant Province must monitor the performance of every water services institution in order to ensure ... compliance with all applicable standards prescribed under this Act ...”. This section , and specifically the use of the word “ must ”, establishes that regulation of water services is an obligation , not merely something ‘ nice to do ’.
4 . What should one reasonably expect from a water services regulator ?
Based on the legislation and policies of government , the DWS as regulator should at least do the following :
• Monitor compliance with the national norms and standards as gazetted in 2001 — especially drinking water quality , interruptions in supply , and water use efficiencies ;
• Report on findings and compliance ; and
• Take action on non-compliance .
5 . How is the DWS doing on monitoring ?
The DWS is doing quite well as a wide range of key performance indicators are regularly monitored by the DWS . These include :
• Access to water supply and level of service ;
• Drinking water quality ( DWQ ) as part of the Blue Drop ( BD ) Certification Programme ;
• Sustainability of service ( reliability of supply );
• Non-revenue water ( No Drop programme );
• Sanitation coverage ; and
• Treatment of wastewater flows and overall performance of wastewater works as component of the Green Drop ( GD ) Certification Program .
The BD scores and certification are based on consistent good performance throughout a specific year , taking a range of key performance indicators into account , including ( but not limited to ) water safety planning ; process management and control as well as drinking water quality compliance ; management , accountability , and local regulation ; and asset management . The GD score and certification are also based on consistent good performance throughout a specific year , taking a range of key performance indicators into account , including process control ; maintenance and management skills ; wastewater quality monitoring programmes ; and wastewater sample analysis ( the latter including aspects such as the accreditation of laboratories ). networking contributor tech news industry environment infrastructure municipalities
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