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Cape Town to Bring in Drought Levy Legalbrief | your legal news hub Friday 24 September 2021 Cape Town to bring in drought levy As the potentially catastrophic Day Zero approaches where the City of Cape Town will run out of water, the city is resorting to more drastic measures to curb water use, including implementing a drought levy, writes Legalbrief. The City of Cape Town has hit water users and ratepayers hard by not only approving Mayor Patricia de Lille’s drought levy, but also increasing water restrictions to Level 6. A Cape Argus report notes that while the opposition rejected the special drought levy, the DA-led council approved the new charges, brushing aside proposals that households be charged according to their income. It is, however, subject to a public participation process to be held next month. The city looks set to implement the charge from 1 February. On New Year’s Day, Level 6 water restrictions will kick in, restricting water usage in order to postpone Day Zero. Families whose properties are valued under R400 000 will be exempt from the drought charge. Xanthea Limberg, mayoral committee member for water affairs, said some capital was sourced from green bonds. ‘But remember these monies have to be paid back. The responsibility for bulk water supply is with the national government. We are doing everything we can do. One also needs to remember the drought charge will only be in place for three winters. We will adjust our budgets as and when it is needed. This charge won’t be permanent,’ Limberg is quoted in the report as saying. The Western Cape has appealed to the national government for more drought relief funds. A Cape Argus report quotes Beverley Schäfer, DA MPL and spokesperson on agriculture, who is calling for a bigger capital investment from the national government. The restrictions will further curb water for farms. ‘An estimated 50 000 jobs in the agricultural sector are set to be lost, amounting to a revenue loss of about R4.9bn,’ she said. More than 350 Cape Town businesses are using treated effluent in place of drinking water amid the city’s worst drought. According to a TimesLIVE report, 200 companies receive the effluent through pipes and 150 collect it at wastewater treatment points‚ De Lille said. Businesses using effluent were involved in sewer cleaning‚ construction‚ painting‚ boat-cleaning‚ car-washing‚ movie production‚ manufacturing and drilling‚ she said. ‘The city has made available seven treated water draw-off points to businesses – including the two points in Goodwood and Thornton which opened this week‚’ De Lille is quoted in the report as saying. ‘The city has made R2.4m available to make 24 treated water draw-off points available to businesses. Using treated wastewater on site also makes financial sense because at R5.30 (including VAT) per kilolitre it is much cheaper than using potable water,’ she added. The severity of the water crisis in Cape Town, brought on by three years of poor rains and surging water demand, is highly unusual even at a time of climate extremes. So says Bob Scholes, a professor of systems ecology at the University of the Witwatersrand in Johannesburg. A BusinessLIVE report quotes Scholes as saying: ‘Running out of water in places that have a highly developed water infrastructure is not that common. I know of no example of a city the size of Cape Town running out of water. It would be quite catastrophic.’ Three straight years of poor rains typically occur less than once in a millennium, according to University of Cape Town climatologists Piotr Wolski, Bruce Hewitson and Chris Jack. It’s unclear what has caused such extreme drought, though climate change is a possible factor and the city should brace itself for a recurrence, they said in a study published on 6 October. A 50% increase in Cape Town’s population over the past decade has added to the pressure on the water supply. Also hindering efforts to respond to the crisis: a lack of co-ordination and co-operation between the ANC-controlled national government and the DA-run city and Western Cape. Appeals to have the entire Western Cape declared a disaster zone went unheeded for months and the national Water Department, which is responsible for bulk supply, has exhausted its budget, according to Western Cape Premier Helen Zille. De Lille says she’s is confident the city can avoid Day Zero, which will occur if dam levels hit 13.5% (they are currently at about 35%, down from 53% a year ago and 92% in 2014). But contingency plans are being put in place. They include distributing drinking water at 200 collection points, guarded by the police and army, and rationing residents to 25 litres each..
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