28 August 2014 Not Enough Water or a Lack of Willingness to Manage - PowerPoint PPT Presentation

28 August 2014

Not Enough Water or a Lack of Willingness to Manage Water Sustainably?

7

 Management  Awareness  Poorly Maintained Infrastructure

Johannesburg Residential eThekwini Residential eThekwini Residential Consumers Consumers (Property value Consumers (Property value under R250,000) over R250,000) Cost of water Inc. VAT Cost of water Inc. VAT Cost of water Inc. VAT 6 kilolitres 6 kilolitres R 0.00 6 kilolitres R 12.29 10 kilolitres R 26.63 10 kilolitres R 14.01 10 kilolitres R 120.71 15 kilolitres R 79.47 15 kilolitres R 84.06 15 kilolitres R 190.77 20 kilolitres R 226.64 20 kilolitres R 154.12 20 kilolitres R 260.82 30 kilolitres R 418.85 30 kilolitres R 317.48 30 kilolitres R 424.18 40 kilolitres R 622.68 40 kilolitres R 605.21 40 kilolitres R 711.92 60 kilolitres R 1 122.23 60 kilolitres R 1 223.95 60 kilolitres R 1 330.65 Non-Revenue Water Bulk Water Tariffs 3 Johannesburg 34% Rand Water R 6.29 /m 3 eThekwini 30% Umgeni Water R 5.36 /m

Does South Africa Value its Water?

 Picture

 R96 000  R33 000  R3 000

 How much per m 3 ?  ± R22,500 /m 3  What is the value of water that goes into 1 m 3 of Coke?  ± R50 /m 3  Does anyone say that Coke should sell below cost of production?  What would be the effect of consistently selling below cost of production?

High with target Mine Water: Neutralisation and Unlawful removed WC/WDM discharge Yield / Water Requirements (million m 3 / annum) High Water Requirement Scenario with 3800 Water Conservation and Demand Management Short-term Yield reduction due to 3600 excess yield dilution releases 3400 3200 Deficit 3000 2800 Polihali Dam Yield 2600 2400 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Years First transfer from LHWP Phase II 18

Typical Water Value Chain, as-is in 2010 900 R 10.00 R 9.15 R 9.00 800 R 8.00 700 R 7.00 600 R 6.41 R 6.00 500 R 5.00 400 R 4.00 R 2.01 R 3.58 300 R 3.00 R 1.70 200 R 2.00 100 R 1.00 Million Cubic Metres 0 R 0.00 Storage (Dam) In Transit (River) Purification and Retail Distribution Consumer R/cubic metre Bulk Distribution Distrubution Phase Volume Lost (million cubic metre) Volume Transferred (million cubic metre) Cost (R/cubic metre)

Richard Holden Business Analyst e-mail: rholden@tcta.co.za Telephone: (012) 683 1200 Website: http://www.tcta.co.za