Increasing Block Tariff structures as a water subsidy mechanism in South Africa: An exploratory analysis

Figures & data

Figure 1: Water access across national asset deciles.

Source: Community Survey 2007 (Statistics South Africa, 2007) and author's own calculations

Table 1: City of Cape Town IBT structures (nominal prices)

Consumption blocks (kilolitres per month)	IBT without free basic water (November 2000)	IBT with free basic water (May 2001)
0 to 6	1.09	0.00
7 to 15	1.95	1.95
16 to 30	3.06	3.06
31 to 60	4.62	4.62
60+	6.30	6.30

Source: P Rhode, personal communication, Department of Water Services, City of Cape Town, 26 October, 2004.

Notes: These prices exclude VAT of 14%. Given the short time period between November 2000 and May 2001, no adjustment was made for inflation. Figures are measured in Rand.

Figure 2: Water consumption across asset deciles

Table 2: Comparison of the three tariff structures across income distribution

Asset decile	Uniform price		IBT without free basic water		IBT with free basic water
	Average cost per month	Average price per unit	Average cost per month	Average price per unit	Average cost per month	Average price per unit
1 (poorest)	1.4	3.1	1.1	2.6	1.0	2.3
2	9.8	3.1	8.0	2.6	7.1	2.3
3	20.0	3.1	16.4	2.6	14.4	2.3
4	29.6	3.1	24.3	2.6	21.4	2.3
5	39.9	3.1	32.8	2.6	28.9	2.3
6	52.5	3.1	49.1	2.9	47.1	2.8
7	55.5	3.1	53.5	3.0	52.1	2.9
8	59.3	3.1	58.1	3.1	57.4	3.0
9	63.1	3.1	61.4	3.0	61.3	3.0
10 (richest)	94.9	3.1	116.2	3.8	127.4	4.2
Average	45.9	3.1	45.9	3.1	45.9	3.1

Note: Figures are measured in Rand.

Figure 3: Redistribution across asset deciles

Figure 4: Redistribution across asset deciles with free basic water based on merit.

Note: Only bottom four deciles receive free basic water

Statistics South Africa, 2007. Community Survey 2007. Statistics South Africa, Pretoria.

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