South Africa: Transnet Gets 7.73% Tariff Approval
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Wednesday, 06 August 2008 |
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The National Energy Regulator of South Africa (Nersa) has granted a
7,73% tariff increase to Transnet’s petroleum pipeline system but said
this would apply for eight, instead of 12, months because of Transnet’s
late application.
Transnet counts the tariff increases among the sources of funding for its multibillion-rand pipeline project. Transnet plans to spend approximately R612m in the current financial year on its R11,2bn new multi-product fuel pipeline from Durban to southern Johannesburg.
In its annual report last year, the parastatal’s pipelines business said the 544km 24-inch (0,609m) pipeline required “significant increases in tariffs to make the project economically viable”. The pipeline is due for commissioning in 2010.
Transnet operates a network of about 2775km of pipelines. These transport products such as gas, petrol, gas crude oil, aviation turbine fuel and diesel, which are crucial to security of petroleum product supplies from the coast to inland areas.
The company transports about 17-billion litres of petroleum products and 14-million gigajoules of gas a year, according to the annual report.
Nersa said on Friday the tariff would not increase by the 7,73% it had approved because the allowable revenue had been “compressed” into eight months “due to the late submission of the application.
It is not possible to recover revenue from motorists for the previous four months, therefore the increase will be recovered over the remaining period of (Transnet’s) financial year ending 31 March 2009.”
The tariff increases will apply from Wednesday, “the day on which the minister of minerals and energy will implement the monthly price adjustments for petroleum products”.
PetrolWorld 030808
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