CLARIFICATION ON NEW R180 CHARGE FOR PREPAID WATER METERS
The Oudtshoorn Municipality acknowledges the concerns and questions raised by residents regarding the new R180 basic charge for prepaid water meters introduced as part of the 2025/26 budget.
We would like to offer clarity on the purpose and necessity of these adjustments.
Why a R180 charge for prepaid water meters?
Residents with conventional water meters already pay a fixed monthly basic charge as part of their bill, which is used for the maintenance of water infrastructure such as pipes, valves, and meter control systems.
With the growing shift to prepaid meters, there was, until recently, no equivalent basic charge for those users. The National Treasury requires the municipality to have a cost-reflective tariff for all services.
The new approved tariffs were introduced to comply with the latter. All fixed costs should be recovered through a fixed/basic charge, and all variable costs should be recovered through variable/consumption tariffs. Previously, there were no fixed cost charges recovered from customers with a pre-paid water meter. This was one of the reasons why a fixed cost is now levied on customers with prepaid meters. However, this balancing act on tariff setting has also assisted that variable/consumption charges on both prepaid and conventional meter systems did not increase.
The new R180 basic charge now ensures that all households, regardless of meter type, are treated fairly and equally by contributing to the sustainable maintenance of the town’s water network.
What does this charge cover?
The funds are used exclusively for:
- Maintenance and replacement of ageing water pipes and meters;
- Prevention of water losses through proactive repair work;
- Improvement of water pressure and supply reliability in both residential and rural areas.
This R180 is not a once-off fee, but a monthly basic charge.
Indigent subsidies
Indigent customers were requested to re-apply by the deadline of 25 June 2025 to receive the subsidy/benefit again in the next cycle starting 01 July 2025. However, the new verification process to verify whether you really qualify for the benefit versus the criteria set took longer than anticipated, as this was the first time the new system was used. The municipality is trying all in its power to fast-track the matter. However, no person who has applied by the cut-off date and qualifies for the benefit on completion of the verification process will be disadvantaged. They will receive all their indigent benefits with effect from 01 July 2025, including. Part of the indigent benefits is the indigent charge of R180 on the prepaid water meters, which would be fully subsidised, plus the free 6 kl of water.