Gauteng municipalities owe Rand Water over R5 billion

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Water utility Rand Water says it is owed over R5 billion by Gauteng municipalities.

The bulk water supplier is raising the alarm over the non-payment of water by some metros in Gauteng. This comes as usage is on the rise, which recently led to some reservoirs running dry and people being left without water.

According to Rand Water CEO Sipho Mosai, the non-payment affects the utility adversely.

“As a schedule 3b-company, we’re self-funding, we are on our own. So it’s critical that we not only get paid but paid in time.”

Mosai further reiterates: “Because what we do with the revenue that we generate from those tariffs, we cover our costs; those costs include the cost of buying raw water. We buy every drop from the department. Those costs include the chemicals, the electricity that we buy from municipalities and Eskom.”

Rand Water supplies 80 municipalities, 46 mines, and almost 949 industrial direct consumers not only Gauteng but also Mpumalanga, Free State, and the Northern Cape.

Video: Gauteng municipalities owe R5,3 Billion to Rand Water amid water shortage concerns