MEDPOLICYGPWCKZNECLPMPNWFSNC Gov.za Media Statements
The Department of Water and Sanitation has finalized consultations on raw water use charges for the 2027/28 financial year. This signals a policy shift towards cost-reflective pricing, which will likely increase costs for bulk water users, including municipalities and industries. For procurement, this means higher input costs for water-related projects and potential adjustments in municipal budgets, but also opportunities for suppliers of water efficiency and alternative water solutions.
Procurement teams and bidders need to factor in higher water costs in their pricing and budgeting, as this will affect municipal service delivery and industrial operations.
The Department of Water and Sanitation has concluded its consultation process on raw water use charges for 2027/28, indicating a forthcoming adjustment in water pricing.
This policy change will ripple across the public procurement industry by increasing the cost of water as an input for many sectors, potentially leading to higher tender prices for water-related projects and a push for more efficient water use. It also signals a broader trend towards cost-reflective pricing in public utilities, which may affect other sectors like electricity and sanitation.
Suppliers of water-saving technologies, desalination, and alternative water supply solutions may see increased demand as users seek to mitigate higher charges. Companies should monitor DWS tenders for water infrastructure and efficiency projects.
Bidders must ensure their pricing reflects the new water charges to avoid underbidding and potential contract disputes. Municipalities may face budget pressures, leading to delayed payments or renegotiations.
Stay ahead of procurement changes