The National Energy Regulator of South Africa has granted freight logistics group Transnet a 7.69% increase in its allowable revenue to R5.68-billion for 2019/20, which translates to a 10.95% increase in pipeline tariffs.
Should Energy Minister Jeff Radebe decide to use the pipeline tariff as a proxy for the cost of transporting fuel to Gauteng, the increase will have a 4.5 c/l impact on the petroleum transportation charge for the Durban-to-Alrode destination, the regulator said in a statement on Monday.
The tariff increase is lower than what Transnet applied for. The group has requested an increase of 37.03% in allowable revenue to R7.2-billion for the 2019/20 tariff period. This would have translated to a 41.17% increase in the pipelines tariff, which would have resulted in an increase of about 16.96 c/l in the transportation charge for the Durban-to-Alrode destination.