UNDERSTANDING WATER TARIFFS
City of Johannesburg Water and Sewer Tariffs for 2022/2023 1
Effective 1 July 2022 - 30 June 2023
• Johannesburg water uses an increasing block tariff for the water service. This divides water use into blocks, where the tariff per kilolitre increases with
increased consumption.
• The entity currently provides 6 kl for free to all residential customers.
• A demand management levy is charged to all customers. The demand levy charge is a fixed charge for each water connection to partially recover the fixed
cost related to providing the service.
• Water tariffs are based on per month, “Per month” in the tariffs is based on a meter reading period of 365.25 days per year divided by 12 months in a year
which equals 30,4375 days. Meter reading periods that are longer or shorter are adjusted proportionately.
• Johannesburg water charges sewerage and sanitary services based on the Erf size of the land for residential customers. Other categories of customers are
charged based on kilotres of water consumed.
Water consumption illustrations by way of an example on two individuals, namely Mpho and Karabo.
Domestic Water Tariffs
Bands (kilolitres) per month 2021/2022 2022/2023 % Increase
0-6 - -
>6-10 20.28 22.26 9.76%
>10-15 21.17 23.23 9.73%
>15-20 29.68 32.57 9.74%
>20-30 41.01 45.01 9.75%
>30-40 44.86 49.23 9.74%
>40-50 56.59 62.11 9.75%
50 60.65 66.56 9.74%
The following shows the calculation of the step tariff on water consumption for a single dwelling (Mpho and Karabo). Mpho with consumption of 10 kiloliters of
water. Let’s calculate her monthly water costs, including VAT.
Step 1: To calculate Mpho's total water consumption costs, we break up her usage into the different tariff categories/blocks
(apportioned for the number of billing days):
In the 0 kl - 6 kl category, she used 6 kl of water.
In the 6 kl - 10 kl category, she used 4 kl of water.
The two categories make up the 10kl consumed by Mpho and therefore in all other categories she used 0 kl of water.
Step 2: Now we calculate how much the number of kiloliters used in each category cost based on the approved tariffs:
6 kl multiplied by R0.00 = R0.00. This rate is the same as 2021/22
4 kl multiplied by R22,26 = R89.04, this is an increase from R81.12 in the 2021/22
Next we add these two subtotals together: R0.00 + R89.04 = R89.04
Step 3: We add the total consumption and the demand levy to determine the VAT exclusive cost of the service.
So her water usage for the month would cost R89.04 plus Demand Management Levy of R31.08 which equals R120.12.
Step 4: We add the VAT of 15% based on the amount determined in step 3 to determine the total bill for Mpho.
15% of R120.12 is R18.01. Therefore, the total cost for Mpho in 2022/23 is R138.14 which increased by R12.28 from the monthly bill of R125.86 in
the 2021/22 financial year for the same consumption. “Per month” in the tariffs is based on a meter reading period of 365.25 days per year divided by
12 months in a year which equals 30,4375 days. Meter reading periods that are longer or shorter are adjusted proportionately.
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UNDERSTANDING WATER TARIFFS
Domestic Water Tariffs 2
Bands (kilolitres) per month 2021/2022 2022/2023 % Increase
0-6 - -
>6-10 20.28 22.26 9.76%
>10-15 21.17 23.23 9.73%
>15-20 29.68 32.57 9.74%
>20-30 41.01 45.01 9.75%
>30-40 44.86 49.23 9.74%
>40-50 56.59 62.11 9.75%
50 60.65 66.56 9.74%
Karabo with consumption of 20 kiloliters of water. Karabo’s monthly water consumption is 20 kl. Let's calculate her monthly water costs, including VAT.
Step 1: To calculate Karabo's total water consumption costs, we break up her usage into the different tariff categories/blocks
(apportioned for the number of billing days):
In the 0 kl - 6 kl category, he used 6 kl of water.
In the 6 kl - 10 kl category, he used 4 kl of water
In the 10 kl - 15 kl category, he used 5 kl of water
In the 15 kl - 20 kl category, he used 5 kl of water
The four (4) categories make up the 20kl consumed by Karabo and in all other categories he used 0 kl of water.
Step 2: Now we calculate how much the number of kiloliters used in each category cost:
6 kl multiplied by R0.00 = R0.00
4 kl multiplied by R22.26 = R89.04
5 kl multiplied by R23.23 =R116.15
5 kl multiplied by R32.57 = R162.85
Next we add these four subtotals together: R0.00 + R89.04 + R116.15 + R162.85 = R368.04
Step 3: We add the total consumption and the demand levy to determine the VAT exclusive cost of the service.
Karabo’s water usage for the month would cost R368.04 plus Demand Management Levy of R31.08 which equals R399.12
Step 4: We add the VAT of 15% based on the amount determined in step 3 to determine the total bill for Mpho.
15% of R399.12 is R59.87. Therefore, the total cost for Mpho in 2022/23 is R458.99 which increased by R40.74 from the monthly bill of R418.24 in
the 2021/22 financial year for the same consumption.
Deemed consumption areas
This refers to consider using area or plot of land within previously disadvantage areas where a flat rate for water consumption was charged and it has not been
possible to assess metered water consumption over the past 12 months:
Deemed consumption 2021/2022 2022/2023
5 KL of water Free Free
10 KL of water 81.13 89.04
20 KL of water 335.36 368.04
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UNDERSTANDING WATER TARIFFS
3
Domestic Water Tariff – Prepayment Meters
Prices illustrated exclude the demand management levy of R31.08 and VAT.
Bands (kilolitres) per month 2021/2022 2022/2023 % Increase
0-6 - -
>6-10 17.47 19.17 9.73%
>10-15 18.02 19.78 9.77%
>15-20 21.53 23.63 9.75%
>20-30 38.98 42.78 9.75%
>30-40 41.96 46.05 9.75%
>40-50 52.44 57.55 9.74%
0>50 57.34 62.93 9.75%
Institutions
Prices illustrated exclude the demand management levy of R274.36 and VAT.
Kilolitres per connection per month 2021/2022 2022/2023
Tariff (R/kl) Tariff (R/kl) % Increase
Consumption up to 200kl 37.32 41.74 11.84%
Consumption exceeding to 200kl 42.56 48.88 14.85%
Commercial / Industrial
Prices illustrated exclude the demand management levy of R274.36 and VAT.
Kilolitres per connection per month 2021/2022 2022/2023
Tariff (R/kl) Tariff (R/kl) % Increase
Consumption up to 200kl 48.03 52.71 9.74%
Consumption exceeding to 200kl 50.67 55.61 9.75%
SANITATION TARIFFS: Private Dwelling Domestic
Prices illustrated exclude the demand management levy of R274.36 and VAT.
2021/2022 2022/2023
ERF Size (m²) Tariff Tariff % Increase
(R/erf/ month) (R/erf/ month)
Up to and including 300m² 243.57 267.32 9.73%
Larger than 300m² to 1000m² 474.15 520.38 9.75%
Larger than 1000m² to 2000m² 717.3 787.24 9.75%
Larger than 2000m² 1 033.51 1 134.28 9.75%
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UNDERSTANDING WATER TARIFFS
4
SANITATION TARIFFS: Other classes
A 2% surcharge is levied on business customers (Institutions, Commercial and Industrial). Prices illustrated excludes VAT.
2021/2022 2022/2023
Descriptions Tariff Tariff % Increase
(R/kl) (R/kl)
Institutional Buildings per KL 28.56 31.34 9.75%
Industrial / Commercial per KL 35.91 39.41 9.75%
Other classes of property per KL 35.91 39.41 9.75%
Residential Indigent Consumers
Where a residential prepayment meter has been installed for the supply of water, where such water is consumed by a consumer that is
declared indigent in terms of the City’s Expanded Social Package policy resolution, the table below will be applicable.
A reduction in tariff will be given to a consumer who is having a drainage installation, connected to Johannesburg Water’s sewer network and
who is declared indigent in terms of the City’s Expanded Social Package policy resolution. The table below will be applicable.
Monthly allocation cap of
free water per household
Allocation of additional in which at least 50% of
Score on Prevailing registered social package Reduction in Sewerage
Indigent Category free water per person
COJ Poverty Index recipients qualify for the Tariff
per day (litres)
band in question (Kilo-litres)
Band 1 1-34 25l. 10kl. 100%
Band 2 35-70 35l. 12kl. 100%
Band 3 71-100 50l. 15kl. 100%
• Band 1 refers to individuals / households within a vulnerability range defined by the approved CoJ poverty index of the ESP policy.
• Band 2 refers to individuals / households with some formal income that nonetheless falls below the survival range threshold set by the
approved CoJ poverty index of the ESP policy.
• Band 3 refers to individuals/ households with no formal income from either grants or employment, or incomes below the individual survival
level as set by CoJ Expanded Social Package policy.
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Group Finance: Communication and Stakeholder Management
Joburg Finance www.joburg.org.za 0860 JOBURG @JoburgFinance
Joburg Finance
0860 (562874)