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Nersa grants Transnet 5% pipeline tariff increase

28th March 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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The National Energy Regulator of South Africa has granted Transnet a petroleum pipeline tariff increase that will allow the realisation of a 5.08% rise in revenue for the next year – well short of the nearly 20% applied for.

The new tariff is an increase from about R2.795-billion in 2013/14 to about R2.937-billion in 2014/15

.

This will result in a consequent petrol price rise of 3.8c/ℓ, or a 0.26% increase in the March retail price of 93 octane petrol in Gauteng, compared with the 7.03c/ℓ increase in inland petro- leum product prices had Transnet been granted the 19.88% hike it applied for.

Challenges Encountered

Transnet Pipelines, the prin- cipal operator of South Africa’s fuel pipeline system, encountered challenges in the construction of its new multiproduct pipeline project, which caused it to change its application “more than once”.

“These changes postponed the forecast dates at which certain new assets would be brought into operation and, consequently, postponed the dates on which these assets can be added to the regulatory asset base.”

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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