Portfolio Committee on Water and Environment Affairs Regulation of South African Water Services (with a focus on Blue Drop and Green Drop Certification)

Portfolio Committee on Portfolio Committee on Water and Environment Water and Environment

AffairsAffairs Regulation of South African Regulation of South African

Water Services Water Services (with a focus on Blue Drop and (with a focus on Blue Drop and

Green Drop Certification)Green Drop Certification)16 April 201316 April 2013

26 to 26 to

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

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

Approaches

• Incentive-Based RegulationIncentive-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

Approaches• Punitive Regulation Punitive Regulation

• Incentive-Based RegulationIncentive-Based Regulation

• Targeted Risk-based RegulationTargeted Risk-based Regulation– W2RAP 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

To obtain certificationA score of 95%95% is required;Includes more than just 99% for Includes more than just 99% for

drinking water quality compliancedrinking 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 -DWQ data -DWQ data -DWQ data -Microbiological Microbiological

qualityqualityHealth Health

Microbiological Microbiological qualityqualityHealth Health

Chemical qualityChemical qualityHealth Health

Chemical qualityChemical qualityHealth Health

Aesthetic qualityAesthetic qualityAcceptabilityAcceptability

Aesthetic qualityAesthetic qualityAcceptabilityAcceptability

Financial sustainabilityFinancial sustainability

HOLISTIC APPROACHHOLISTIC APPROACHFinancial sustainabilityFinancial sustainability

HOLISTIC APPROACHHOLISTIC APPROACH

6

Blue Drop 2011 Requirements

Process Controlling (10%)

WWQ Compliance (30%)

MonitoringProgramme (10%)

AnalysisAnalysisCredibility (5%)Credibility (5%)

WWQ Failures Response Management (10%)

Bylaws (5%)

WWQ Data Submission (5%)

WWQ Asset Management (10%)

To obtain certificationA score of 90%90% is

required;This would include a 90% quality compliance on all 3 Categories

(Microbiological; Chemical& Physical)

WW TreatmentCapacity (10%)

7

Incentive Based Regulation

Taking StockTaking StockWhere were we, Where are we now?Where were we, Where are we now?

• The innovative form of regulation continuescontinues 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 3rd Municipal Water Quality Conference attracted 870 delegates in comparison to 350 in 2007 and 550 in 2009

8


Taking Stock - Taking Stock - Where were we, Where are we now?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 symposiao 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 weeklyo Will be quantified at the end of the assessment cycle against data

submissiono “Insistence of the private sector to be assessed”

9

Blue Drop Blue Drop 20122012 PerformancePerformance

Blue Drop Assessment Analyses (National)Category 2009 2010 2011 2012 Trend

Nr Municipalities Audited 107 153 162 153 ↓↓

Nr Water Systems Audited 402 787 914 931 ↑↑

Nr Blue Drop Awards 2525 3838 6666 9898 ↑↑

National Blue Drop Score 51.4% 67.2% 72.9% 87.6% ↑↑

10


Taking Stock:Taking Stock: Where were we, Where are we now?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






— 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 - BDS Data Submission - Meaningful dataMeaningful data• 2005 – 4 700 2009 – 1 200 000• 2007 – 6100 2010 – 1.7 mil• 2008 – 316 000 2011 – 1.9 mil

12






— 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 201413

DWQ Information Availability

• All DWQ information is available on the Blue Drop System:– 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 The Blue Drop Report provides credible information on municipal specific performance and indentified on municipal specific performance and indentified risks. Copies available at risks. Copies available at www.dwa.gov.za/bluedropwww.dwa.gov.za/bluedrop, under “News”under “News”

The Blue Drop Report provides credible information The Blue Drop Report provides credible information on municipal specific performance and indentified on municipal specific performance and indentified risks. Copies available at risks. Copies available at www.dwa.gov.za/bluedropwww.dwa.gov.za/bluedrop, under “News”under “News”

14

http://www.dwa.gov.za/bluedrop



Victor Khanye LMVictor Khanye LMFrom Diarrhoea Outbreak to 80% Blue Drop ScoreFrom Diarrhoea Outbreak to 80% Blue Drop Score

Victor Khanye LMVictor Khanye LMFrom Diarrhoea Outbreak to 80% Blue Drop ScoreFrom Diarrhoea Outbreak to 80% Blue Drop Score

15

Wastewater Wastewater ManagementManagement

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 capacityB = receiving flowC = Number of non-compliance in terms of

effluent qualityD = Technical skills complianceCRR=(A*B+C+D)

Weighting factors used to establish CRR

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

4 11DPW RISK INDICATOR:

66%

CUMULATIVE RISK COMPARATIVE ANALYSIS

Performance Category 2008 2009 2011 2012Risk Trend

[2011-2012]

Highest CRR 25 29 32 28 ↓Average CRR 13.5 13.3 13.6 12.3 ↓Lowest CRR 5 4 3 2 ↓Average Design Rating (A) 2.5 1.4 1.4 1.4 →Average Capacity Exceedance Rating (B)

3.3 3.7 4.1 3.8 ↓

Average Effluent Failure Rating (C)

3.2 5.7 5.7 4.7 ↓

Average Technical Skills Rating (D)

1.7 2.4 2.6 2.5 ↓

AVERAGE % DEVIATION FROM maximum-CRR

67.0 66.8 69.2 66.0 ↓

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

What do we (DWA) want

• 100% assessment of all municipalities• 100% compliance of all municipalities

– Private institutions

23

Way Forward InitiativesDWQ & Wastewater ServicesDWQ & Wastewater Services

• Water Services = Municipal WorkplanWater 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 PlanningWastewater Risk Abatement Planning– Reducing wastewater risks in a strategic manner to facilitate

sustainable turn around

Challenge:Challenge:Capacitated StakeholdersCapacitated Stakeholders

Strengthen role of Civil SocietyStrengthen role of Civil Society

Challenge:Challenge:Capacitated StakeholdersCapacitated Stakeholders

Strengthen role of Civil SocietyStrengthen role of Civil Society

Challenge:Challenge:Ones we know the specific Ones we know the specific

risks, solutions needs to be findrisks, solutions needs to be find

Challenge:Challenge:Ones we know the specific Ones we know the specific

risks, solutions needs to be findrisks, solutions needs to be find

24

Way Forward Initiatives (2)

• Municipal Water Quality Capacity BuildingMunicipal Water Quality Capacity Building– Cross-Pollination Programme (Twinning)Cross-Pollination Programme (Twinning)– Multi Sector Support ProgrammesMulti Sector Support Programmes– Monitoring rectification and abatement of critical risk Monitoring rectification and abatement of critical risk

elementselements– Gauge GDS and RPMS activityGauge GDS and RPMS activity– To expand Green Drop Audits to include privately owned To expand Green Drop Audits to include privately owned

plants discharging into environmentplants discharging into environment– Expand targeted risk based regulation to other quaternary Expand targeted risk based regulation to other quaternary

catchmentscatchments

25

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

Way Forward Initiative (4)Way Forward Initiative (4)

Key Risk Areas for Key Risk Areas for 20132013 Blue Drop Progress ReportingBlue 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

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

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

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

30

http://www.dwa.gov.za/projects/4thMWQC/default.aspx

Thank youThank youThank youThank you

www.dwa.gov.za/bluedrop; www.dwa.gov.za/greendropwww.dwa.gov.za/bluedrop; www.dwa.gov.za/greendrop31



Documents

Portfolio Committee on Water and Environment Affairs Regulation of South African Water Services (with a focus on Blue Drop and Green Drop Certification)