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1.1 Define basic charge. 1.1.2 Show how the tariff of R38,62 during 2025/2026 was calculated.

Economics

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1.1.1 Define the basic charge in the given context.

A basic charge, in the context of water tariffs, is a fixed monthly fee charged for the water service, irrespective of the actual amount of water consumed by the household or user.

1.1.2 Show how the tariff of R38,62 during 2025/2026 was calculated.

  1. Identify the 2024/2025 tariff for the "16 - 30 kl" step and the percentage increase.

    The 2024/2025 tariff for 16 - 30 kl is R34.49 per kl. The percentage increase is 11%.

  2. Calculate the increase amount.

    Increase=R34.49×11%=R34.49×0.11=R3.7939\text{Increase} = \text{R}34.49 \times 11\% = \text{R}34.49 \times 0.11 = \text{R}3.7939
  3. Add the increase to the 2024/2025 tariff to find the 2025/2026 tariff.

    New Tariff=R34.49+R3.7939=R38.2839\text{New Tariff} = \text{R}34.49 + \text{R}3.7939 = \text{R}38.2839
  4. Round the new tariff to two decimal places.

    New Tariff≈R38.28\text{New Tariff} \approx \text{R}38.28

    *The tariff of R38.62 is listed in the

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