1. Portfolio Committee on Water and Environment Affairs Regulation of South African Water Services (with a focus on Blue Drop and Green Drop Certification) 16 April 2013 26 to

2. Why Water Services Regulation Constitution: Bill of Rights Water Services Act (Act 108 of 1997): Section 62 (1) “The Minister and any relevant Province must monitor protect the performance of every water service institutions in order to ensure - (a) Compliance with all applicable national standards prescribed under this Act…” 2

3. Approaches Punitive Regulation Punitive Regulation – Compliance Monitoring and Enforcement – Regulatory Performance Measurement (RPMS) Tariff determination + Contract Regulation fair to all citizens (equitable) affordable (viable; ensure economically effective & efficient use of resources) allow for continuity of service (sustainability) 3

4. Approaches Incentive-Based Regulation Incentive-Based Regulation – Blue Drop Certification and Green Drop Certification Rewards system to encourage performance excellence and continuous improvement - innovative performance rating system built around legal requirements and local / international good practices as it applies respectively to the management of drinking water and wastewater 4

5. Approaches Punitive Regulation Punitive Regulation Incentive-Based Regulation Incentive-Based Regulation Targeted Risk-based Regulation Targeted Risk-based Regulation – W 2 RAP Process for wastewater (as approach of water safety plans for drinking water supply systems) An approach that allows institutions to identify and prioritise critical risks within the supply of drinking water and treatment of wastewater and to take corrective measures to abate these risks. Risk analysis is used by the Regulator to identify, quantify and manage the corresponding risks according to their potential impact on the water resource (and human health) and to ensure prioritised and targeted regulation of Institutions 5

6. To obtain certification 95% A score of 95% is required; Includes more than just 99% for drinking water quality compliance The evaluation criteria DWQ Asset Management (15%) DWQ Data Submission (5%) DWQ Compliance (30%) Water Safety Planning & Incident Response Management (15%) Monitoring Programme (15%) Analysis Credibility (5%) DWQM Publication (5%) Process Controlling (10%) DWQ data - Microbiological quality Health Health Chemical quality Health Health Aesthetic quality Acceptability Acceptability Financial sustainability HOLISTIC APPROACH Financial sustainability HOLISTIC APPROACH 6

7. Blue Drop 2011 Requirements Process Controlling (10%) WWQ Compliance (30%) Monitoring Programme (10%) Analysis Credibility (5%) WWQ Failures Response Management (10%) Bylaws (5%) WWQ Data Submission (5%) WWQ Asset Management (10%) To obtain certification 90% A score of 90% is required; This would include a 90% quality compliance on all 3 Categories (Microbiological; Chemical& Physical) WW Treatment Capacity (10%) 7

8. Taking Stock Where were we, Where are we now? Incentive Based Regulation Taking Stock Where were we, Where are we now? continues The innovative form of regulation continues to “entice” increased interest in Drinking Water Quality & Wastewater Services Management: – The regulatory databases continues to show increased activity as members form municipalities load information, (the Blue Drop System (BDS) already had some time ago more than 2 million “hits”. – The 3 rd Municipal Water Quality Conference attracted 870 delegates in comparison to 350 in 2007 and 550 in 2009 8

9. Taking Stock - Where were we, Where are we now? Incentive Based Regulation Taking Stock - Where were we, Where are we now? In preparation of the upcoming 2012/13 Green Drop / RPMS / Blue Drop Assessments, approximately 500 Officials attended the country-wide symposia o Changing assessment criteria means that no-one can be complacent, not even the most experienced Linked to this, with Green Drop assessments commencing this week, activity on the Green Drop continues to increase weekly o Will be quantified at the end of the assessment cycle against data submission o “Insistence of the private sector to be assessed” 9

10. Blue Drop 2012 Performance Blue Drop Assessment Analyses (National) Category2009201020112012Trend Nr Municipalities Audited107153162153↓ Nr Water Systems Audited402787914931↑ Nr Blue Drop Awards25386698↑ National Blue Drop Score51.4%67.2%72.9%87.6%↑ 10

11. Taking Stock: Where were we, Where are we now? Incentive Based Regulation Taking Stock: Where were we, Where are we now? Data shows that the microbiological compliance of drinking water determined for the country improved from 93.3% (2009) to 97.3% (2012) (measured against SANS 241: 2006) — Noting the increase in both microbiological and chemical data submission and credibility of information In 2011, 154 systems were reported to have Water Safety Plans, in 2012, 579 systems had Water Safety Plans of which 269 were complying with international standards — Systems in place to identify risks, systems in place to ensure optimum monitoring (the latter includes looking at the determinands of concern in the system) 11

12. Taking Stock: Where were we, Where are we now? Incentive Based Regulation Taking Stock: Where were we, Where are we now? Data shows that the microbiological compliance of drinking water determined for the country improved from 93.3% (2009) to 97.3% (2012) (measured against SANS 241: 2006) — Noting the increase in both microbiological and chemical data submission and credibility of information In 2011, 154 systems were reported to have Water Safety Plans, in 2012, 579 systems had Water Safety Plans of which 269 were complying with international standards — Systems in place to identify risks, systems in place to ensure optimum monitoring (the latter includes looking at the determinands of concern in the system) BDS Data Submission - Meaningful data 2005 – 4 7002009 – 1 200 000 2007 – 61002010 – 1.7 mil 2008 – 316 0002011 – 1.9 mil 12

13. Taking Stock: Where were we, Where are we now? Incentive Based Regulation Taking Stock: Where were we, Where are we now? Data shows that the microbiological compliance of drinking water determined for the country improved from 93.3% (2009) to 97.3% (2012) (measured against SANS 241: 2006) — Noting the increase in both microbiological and chemical data submission and credibility of information In 2011, 154 systems were reported to have Water Safety Plans, in 2012, 579 systems had Water Safety Plans of which 269 were complying with international standards — Systems in place to identify risks, systems in place to ensure optimum monitoring (the latter includes looking at the determinants of concern in the system) The “tightening” of SANS 241 requirements might have an affect on the compliance figures which will be reported in 2014 13

14. DWQ Information Availability All DWQ information is available on the Blue Drop System: – www.dwa.gov.za/bluedrop www.dwa.gov.za/bluedrop – Or on the Mobi site: my-water.mobi – The site had more than 2 million visitors The Blue Drop Report provides credible information on municipal specific performance and indentified risks. Copies available at under “News” The Blue Drop Report provides credible information on municipal specific performance and indentified risks. Copies available at www.dwa.gov.za/bluedrop, under “News”www.dwa.gov.za/bluedrop The Blue Drop Report provides credible information on municipal specific performance and indentified risks. Copies available at under “News” The Blue Drop Report provides credible information on municipal specific performance and indentified risks. Copies available at www.dwa.gov.za/bluedrop, under “News”www.dwa.gov.za/bluedrop 14

15. 2007 & 2009; major diarrhoea and typhoid outbreaks 2011; <20 % Blue Drop Score Obtained 2012; Most improved WSA award Victor Khanye LM From Diarrhoea Outbreak to 80% Blue Drop Score Victor Khanye LM From Diarrhoea Outbreak to 80% Blue Drop Score 15

16. Wastewater Management

17. Risk-based Targeted Regulation The aim of the approach is to assess risks and prioritise appropriately. To address aspects of public health and environmental integrity in a sustainable manner. Intervention according to Cumulative Risk Rating Cumulative risk rating considers : A = design capacity B = receiving flow C = Number of non-compliance in terms of effluent quality D = Technical skills compliance CRR=(A*B+C+D)

18. Weighting factors used to establish CRR

19. 2012 Progress Assessment Tool Cycle 153 municipalities (total 831 plants assessed), treating 5 374 Ml wastewater per day or 1 961 510 Ml/year Department of Public Works, total of 11 regional offices and 117 plants assessed with these plants receiving 15 Ml/day Privately owned plants - 4x 19

20. 4 11  DPW RISK INDICATOR: 66%

21. CUMULATIVE RISK COMPARATIVE ANALYSIS Performance Category2008200920112012 Risk Trend [2011-2012] Highest CRR252932 28↓ Average CRR13.513.313.6 12.3↓ Lowest CRR543 2↓ Average Design Rating (A)2.51.4 → Average Capacity Exceedance Rating (B) 3.33.74.1 3.8↓ Average Effluent Failure Rating (C) 3.25.7 4.7↓ Average Technical Skills Rating (D) 1.72.42.6 2.5↓ AVERAGE % DEVIATION FROM maximum-CRR 67.066.869.2 66.0↓

22. 2012 Green Drop Progress Performance Assessed 831 wastewater systems in comparison with 821 in 2011 68 plants maintained their 2011 Green status, 323 plants digressed (increased risk ratios) and 440 plants showed progress by having lower risk ratios 22

23. What do we (DWA) want 100% assessment of all municipalities 100% compliance of all municipalities – Private institutions 23

24. DWQ & Wastewater Services Way Forward Initiatives DWQ & Wastewater Services Water Services = Municipal Workplan Water Services = Municipal Workplan – To address the Presidential Targets by means of the Blue Drop and Green Drop principles Objective: Target 2014 – 99% DWQ Compliance and 80% WWQ compliance 50% reduction of water losses Wastewater Risk Abatement Planning Wastewater Risk Abatement Planning – Reducing wastewater risks in a strategic manner to facilitate sustainable turn around Challenge: Capacitated Stakeholders Strengthen role of Civil Society Challenge: Capacitated Stakeholders Strengthen role of Civil Society Challenge: Ones we know the specific risks, solutions needs to be find Challenge: 24

25. Way Forward Initiatives (2) Municipal Water Quality Capacity Building Municipal Water Quality Capacity Building – Cross-Pollination Programme (Twinning) – Multi Sector Support Programmes – Monitoring rectification and abatement of critical risk elements – Gauge GDS and RPMS activity – To expand Green Drop Audits to include privately owned plants discharging into environment – Expand targeted risk based regulation to other quaternary catchments 25

26. Way Forward Initiatives (3) Implementing Enforcement Protocol – Where Sections 41(3) and 154(1) of the Constitution is honoured (Build Capacity of Local Government, as per previous slide) To implement Section 73 of the Water Services Act – i.e. To obtain agreement with WSA that they are unable to manage water services as per set Norms & Standards, and then to get an external institution to render services on behalf of the WSA To ensure improvement of Water & Wastewater Services Management by means of Economic Regulation principles: – In terms of cost reflective tariff determination and – Infrastructure Investment (Asset Management) 26

27. Way Forward Initiative (4) Key Risk Areas for 2013 Blue Drop Progress Reporting 1. The status of Water Safety Planning – The existence of an acceptable process 2. Skills compliance to Reg 17 3. Actual Compliance —Compliance of DWQ (as well as Risk Index) 27

28. Challenges Drinking water supply systems - assessments – Changing numbers of water supply systems presented for assessment Borehole systems – Staff turn-around within municipalities (skills) Shortages staff within DWA to do assessments 28

29. Challenges Wastewater Treatment Works – Treatment Plants functioning above design capacity – Operation and Maintenance neglected (poor planning) – Applications for water-use licences not received – Applications for water-use licences received, but with not all the required information attached to process the application 29

30. Registration is now open - weblink: http://www.dwa.gov.za/projects/4thMWQC/default.aspx http://www.dwa.gov.za/projects/4thMWQC/default.aspx 30

31. Thank you www.dwa.gov.za/bluedropwww.dwa.gov.za/bluedrop; www.dwa.gov.za/greendrop www.dwa.gov.za/bluedropwww.dwa.gov.za/bluedrop; www.dwa.gov.za/greendrop 31