First Look Blog

Articles written by the First Look team.

Increased Cost of Water in COJ

Published by Ken Nunes on 24/08/2018

Water increase rand
Increased Water & Sewage Tariffs in the City of Johannesburg come into effect on the 1st June of each year, although the true effect does not reflect in your accounts until July or maybe August. We have carried out a study of these increases since 2012, and unless you already follow these annual increases carefully, you may be somewhat surprised.

The graph above details the Evolution of Cost per KL of Water & Sewage between 2012 to 2018, which details the cost of Water & Sewage over the study period, presently standing at approximately R61.50, an increase of approximately 20.50% from 2017/2018 costs.

NOTE: The cost per KL of Water/Sewage is calculated by dividing the Total Municipal Invoice Value by the Total Water Consumption detailed in the invoice. This will include VAT (which as schools are not VAT (now 15%) registered, is a cost) and Demand Management Levy, which in Johannesburg is R198.98 per Water Meter.

This effectively means that over the study period, Water & Sewage costs have increased by approximately 116%.

Therefore, if the annual Water & Sewage costs of your school in Johannesburg is presently the average of R230,000.00 per year (Primary Schools), and R380,000 per year (Secondary/High Schools) this 20.50% increase will imply an additional cost of R47,000.00 per Year Primary School and R77,900.00 per Year Secondary/High Schools.

Water efficiency in Schools is an ever increasing priority and understanding your Municipal Invoices in 2018/2019 just became 20% more important.

For additional information please refer to the following articles:
Preparing for 2019
Manual Water Meter Monitoring for Schools in SA

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