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Accessing the utilityAccessing the utility

of Free Basic Water?of Free Basic Water?

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IntroductionIntroduction

�� Access to the utility of Free BasicAccess to the utility of Free Basic

Water Water �� Experience on the groundExperience on the ground

�� PolicyPolicy

�� RecommendationsRecommendations

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Access to FBWAccess to FBW

� FBW policy entitles all people to a free lifelinesupply of 6000 litres/6 kilolitres (kl) of water

per household per month; or 200 litres per

household per day; or 25 litres per 8-member

household (DWAF, 2002)� 26.8 million people have access to FBW (Muller,

2003)

� Access to the µutility¶ of FBW?

± Low-income households consume 2020--25kl per month25kl per monthand are not accessing the utility of FBW, as they

require more water than 6kl to satisfy basic needs.

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2 fundamental flaws:2 fundamental flaws: ± Basic water requirements

± Per household versus per capita

Basic water requirements (BWRs)Basic water requirements (BWRs)--

� FBW provides 200l per household per day200l per household per day

� 8-member household = 25l/person/day25l/person/day

�� 25l/person/day25l/person/day does not meet BWRs for health andwell being of households (DWAF acknowledges this)

� Why is DWAF providing a minimum that does notmeet health and productive life objectives?

� Short-term goal 25l25l and medium-term goal 5050--60l.60l.Surely 9 years is already medium-term?

� What steps are being implemented to ensure medium-term goal?

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� Studies on BWRs not comprehensive

� SAMWU (2002), AIDC (2002) and Gleitch (1996)suggested that the BWRs should be 63l but ignore

children, the aged and HIV/AIDS influences on

consumption.

� Hence research is suggesting the BWR be raisedabove 63l.

� Current consumption patterns stand at 89-111 litres

per person (20-25kl/month- Municipal figures for

low-income urban households).� Urgent that BWRs be ascertained.

�� FBW standard bears no relationship to the basicFBW standard bears no relationship to the basic

water requirements of householdswater requirements of households(AIDC, 2002).

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Per capita FBW allocationPer capita FBW allocation� Ignores the fact that proportionally large number of low-

income households with more than 8 members, especially if households are billed for their backyard shack rental

residents (Bond, 2003).

� The bias in the use of the term µhousehold¶ as the unit of

analysis has the implication that the FBW benefits areinequitably captured by wealthy small member households.

� HOW? Per capita FBW allocation: adding additional record

to the bill, so that the number of people per household is

recorded e.g. using I.D. numbers or other confirmation of

household members and checking it annually with a national

data base preventing people from abusing the system (Bond,

2003).

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� Many low-income households face significant

access and affordability constraintsaccess and affordability constraints as a resultof a policy purported to increase the accessibility

to water for all South Africans

± Assumption that low-income households

accessing FBW-using more so« ± Pushed into higher 2nd blocks (affordability?)

± Not subsidised

± Face punitive measures for inability to pay.

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PolicyPolicy

� Inability to pay (over 6kl); brands householdsirresponsible and µabsolute right to access water¶waived and µminimum core right¶ comes intoeffect.

�� µMinimum core right¶µMinimum core right¶ might be acceptable if basic water requirements were met by FBW; butthey are not.

� The FBW policy is in breach of the constitutional

right of households to access adequate andaffordable water to meet basic domestic needsand water required to satisfy productive lifeimperatives.

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RecommendationsRecommendations

� The FBW policy should be fundamentally fundamentally re-

worked.

� A national FBW evaluationnational FBW evaluation should be

implemented (parallel process to createplatforms whereby community experiences to

FBW elicited and municipal µaccessing utility of

FBW¶ statistics.

� The basic water requirementsbasic water requirements for health, wellbeing and satisfying productive, sustainable

livelihoods should be scientifically calculated

and socially assessed.

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� The amended policy should incorporateincorporateall factors affecting consumptionall factors affecting consumption

(diverse and integrated approach).(diverse and integrated approach).� Per capita versus per household FBW

allocation

�� Access to water should take intoAccess to water should take intoaccount the following factorsaccount the following factors::

± Household demographics and householdwater usages

± Income and service expenditure statuses ± Willingness and ability to pay

± Tariff structures

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�� Tariffs:Tariffs:

± ± 11stst block:block: amended FBW (BWRs);

± ± 22ndnd blockblock lifeline tariff (20-25kl);

± then steep rising block tariff-based on

conservation incentives (the higher the

marginal cost for high consumption, the morecustomers will be aware of the merits of

conservation and the fewer dams will have to

be built (Bond, 2003).

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± Ease in which households can convert tolower consumption allocations

�� Outcomes of evaluation, basic water Outcomes of evaluation, basic water requirements and lowrequirements and low--incomeincomeexperiences should be integrated.experiences should be integrated.

�� IMPORTANT:IMPORTANT: caution againstadvocating for a fixed volumetricallocation; rather should advocate for

the integration of all factors necessaryfor a amicable policy changes.

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33 FinancingFinancing optionsoptions for for FBWFBW

a)a) IncreaseIncrease internalinternal crosscross--subsidiessubsidies mobilisedmobilised

WITHINWITHIN municipalitiesmunicipalities thatthat havehave sufficientsufficientsurplusessurpluses

± specifically through businesses (tariff blocks haveremained unchanged- they should take the

appropriate concave shape).b)b) MobiliseMobilise internalinternal crosscross--subsidiessubsidies WITHINWITHIN thethe

water water sector sector

so that huge potential funding available through

DWAF's charging wealthy white farmers, Eskom,mines/ industry and other (non-municipal) users of water can be made available to municipalities thatdon't have large water consumers within their boundaries.

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c) Substantially increase equitable sharec) Substantially increase equitable share

grantsgrants through the National Treasury tomunicipalities, given that national to local

grants for operating expenses fell 85% in

real terms during the 1990s (according to

Finance and Fiscal Commission) and the1991 levels have not been reached in spite

of massive 'unfunded mandates' that central

government placed on municipalities after 1994.

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Some of the equitable share should go

to boost the operating/ maintenanceoperating/ maintenancerevenuesrevenues for the municipal water sector in areas where internal cross-subsidisation is not high enough; and

other national funds should go tocapital investmentscapital investments inwater/sanitation, as well as other services that municipalities struggle tomaintain e.g. township infrastructure(Bond, 2003).

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