Little fish wins against big fish in fight over huge water tariff hike
A private firm squared off with the minister of water and a provincial entity over exorbitant tariffs, and won
Umgeni Water and the national minister of water and sanitation have been barred from imposing a “staggering” 38% tariff increase on a private company that “stepped into the shoes” of the Ilembe Municipality to provide bulk water to residents of Zimbali, Salt Rock, Ballito and other communities on the KwaZulu-Natal North Coast.
The proposed increase on Sembcorp Siza Water for the 2015/16 financial year was in contrast to the 7.8% proposed for Umgeni Water’s other customers – all of them municipalities.
The Supreme Court of Appeal said on Tuesday that in order for there to be differentiation, there had to be a rational basis for it...