Buffalo City Municipality will object to a proposed tariff increase on raw water by the Amatola Water Board, the Daily Dispatch reported today.

The newspaper reported that the council had resolved at its meeting that the matter would be referred to arbitration in terms of a dispute resolution clause in the bulk supply agreement. A report to council said the tariff increase for 2003/04 ranged from 11 percent (Laing Dam) to 12, 5 percent (Nahoon, Sandile and Rooikrantz schemes).

The municipality reportedly contends that the increase would result in it cross-subsiding water supplies to areas outside the city. This could lead to a possible escalation in increases at a rate of CPIX plus 10 percent.

The Amatola Water Board would not accede to a written request from the municipality asking for a reduction in the tariffs to help reduce overall water costs to the municipality, the newspaper reported.

For more information see: Daily Dispatch

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