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2. The following water tariff is an extract from Sekhukhune District Municipality water and sanitation tariffs. Use the tariff to answer the questions on water usage charges.

Sekhukhune District Municipality: Water Tariff 2018/19

\begin{tabular}{|c|c|c|}
\hline
& \begin{tabular}{l}
RESIDENTIAL \\
METERED AREA
\end{tabular}
& \begin{tabular}{l}
PRICING \\
(IN RAND)
\end{tabular} \\
\hline
& Basic charge Full Time Supply & 46,33 \\
\hline
\multirow[t]{9}{}{ Rebates }
& Basic charge Part Time/Time Managed supply & 23,16 \\
\hline
& \begin{tabular}{l}
\begin{aligned}
& First 6 units (indigents) \\
& First 6 units (Non-indigents) \\
& 7 to 10 units \\
& 11 to 30 units \\
& Above 30 units
\end{aligned}
\end{tabular}
& \begin{tabular}{l}
Free \\
7,14 \\
8,33 \\
9,16 \\
10,08
\end{tabular} \\
\hline
& UNMETERED AREA & \\
\hline
& Monthly Flat Rate & 93,57 \\
\hline
& \begin{tabular}{l}
Pre-paid \\
Unit charge
\end{tabular}
& 8,40 \\
\hline
& COMMUNAL STAND PIPES (above RDP) & \\
\hline
& Monthly Flat Rate & 51,18 \\
\hline
& \begin{tabular}{l}
COMMUNAL STAND PIPES (PRE-PAID) \\
- First 6 units \\
- 6 to 30 units \\
- Above 30 units
\end{tabular}
& \begin{tabular}{l}
0 \\
8,35 \\
8,88
\end{tabular} \\
\hline
& — & \\
\hline
\end{tabular}

A rebate is a partial refund to someone who pays too much for water.*

2.1 What is a tariff?

2.2 Express as a unit ratio, the monthly flat rate for communal stand pipes to the residential unmetered monthly flat rate. (Round to two decimal places)

2.3 Write down the rebate for the part-time/time managed supply of water for a residential metered area.

2.4 Calculate the VAT amount that is included in the R93,57 monthly flat rate for the UNMETERED residential area.



Answer :

GinnyAnswer
Certainly! Let's break down each part of the question and solve it step by step.

### 2.1 What is a tariff?
A tariff is a schedule of fees or charges imposed by a service provider, in this case, a municipality, for the provision of services. It outlines the cost of using water services based on different rates, such as metered and unmetered areas. These tariffs often include unit charges for variable consumption and flat rates for basic service provision, and they may also encompass rebates or discounts for specific conditions.

### 2.2 Express as a unit ratio, the monthly flat rate for communal stand pipes to the residential unmetered monthly flat rate. (Round to two decimal places)
The monthly flat rate for communal stand pipes is R51.18.
The monthly flat rate for residential unmetered areas is R93.57.

To find the unit ratio, divide the communal stand pipes rate by the residential unmetered rate:
[tex]\[ \text{Unit Ratio} = \frac{51.18}{93.57} \][/tex]

The calculated unit ratio, rounded to two decimal places, is [tex]\( 0.55 \)[/tex].

### 2.3 Write down the rebate for the part time/time managed supply of water for a residential metered area.
The rebate for the part time/time managed supply of water for a residential metered area is listed in the tariff schedule as R23.16.

### 2.4 Calculate the VAT amount that is included in the R93.57 monthly flat rate for the unmetered residential area.
Assuming a VAT rate of 15%, we can calculate the VAT amount included in the given monthly flat rate of R93.57. The VAT amount included in a price can be calculated using the formula:
[tex]\[ \text{VAT Amount} = \frac{\text{Total Amount} \times \text{VAT Rate}}{1 + \text{VAT Rate}} \][/tex]

Plugging in the given values:
[tex]\[ \text{VAT Amount} = \frac{93.57 \times 0.15}{1 + 0.15} \][/tex]

The calculated VAT amount is approximately [tex]\( 12.20 \)[/tex] (rounded to two decimal places).

So, summarizing the results:
1. Tariff: A schedule of charges for services provided.
2. Unit Ratio: 0.55
3. Rebate for part time supply: R23.16
4. VAT Amount: R12.20

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