OPINION | Water sector needs independent regulatory framework to thrive

The Water Services Authority model allows politically governed municipalities to act as service providers, blurring lines of accountability, says the writer.
The Water Services Authority model allows politically governed municipalities to act as service providers, blurring lines of accountability, says the writer. (Thapelo Morebudi)

Water is a strategic national resource and a constitutional right in SA. Yet the sector is in deep crisis.

More than 100 municipalities are functionally distressed, non-revenue water averages 47% and consumer trust in public service delivery is eroding.

These challenges point to the absence of a strong, independent regulatory framework that can enforce standards, regulate tariffs and protect consumers and service providers.

SA’s water sector governance is split across multiple levels of government, with regulatory functions spread between the department of water and sanitation, municipalities, provincial departments and the Treasury. This creates overlaps, gaps and inconsistent standards enforcement.

The Water Services Authority model allows politically governed municipalities to act as service providers, blurring lines of accountability.

An independent regulator would provide technical continuity and depoliticised oversight, ensuring a consistent application of water laws and performance standards.

SA has successful regulatory bodies in other strategic sectors. These include the Independent Communications Authority of SA, which regulates telecommunications and broadcasting. It has improved access, competition and tariff fairness.

The National Nuclear Regulator (NNR) is another example. The NNR provides independent licensing and safety enforcement for nuclear energy via the SA Nuclear Energy Corporation.

Both institutions demonstrate that independent governance, secured funding and clear statutory mandates can ensure regulatory credibility even in high-risk sectors.

Countries with similar developmental contexts have instituted independent regulators with demonstrable benefits, including Zambia, which uses a licensing regime and performance reporting to drive efficiency, Portugal, which oversees quality, pricing and planning in a transparent and consultative framework, and the UK. In the UK the entity responsible for the licensing regime is a global model for tariff review and long-term capital planning.

The presidential water and sanitation indaba highlighted regulatory reform as a top priority. Recommendations included the need to establish an independent regulator to oversee tariffs, standards and licensing.

The indaba further suggested that institutional professionalism required strengthening and that service delivery should be ring-fenced from politics.

The other main recommendation is related to adopting integrated, climate-resilient infrastructure planning frameworks.

An independent regulator should be empowered by national legislation with the authority to license water-service providers, review and approve bulk and retail tariffs, monitor and enforce technical and service standards and provide a dispute-resolution mechanism for consumers.

The regulator must report to parliament, be funded independently from service providers and operate transparently.

Water governance in SA demands a shift from decentralised discretion to institutional integrity. An independent regulator is not a cure-all, but it is the cornerstone of a sustainable, equitable and accountable water sector.

* Monyokolo is chairperson of the Rand Water board and chairperson of the Association of Water and Sanitation Institutions of SA


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