Transnet granted 6.4% pipeline tariff increase
The National Energy Regulator of South Africa (Nersa) on Wednesday granted State-owned Transnet a 6.4% increase in 2013/14 petroleum pipeline tariffs.
If the Energy Minister decided to use the pipeline tariff as a proxy for the cost of transporting fuel from Durban to Johannesburg, as had been the case in the past, this would represent a 1.4c/l increase in the pipeline tariff from Durban to Johannesburg.
It would also represent an 8.53% rise in allowable revenue for Transnet, from R2.6-billion in 2012/13 to R2.8-billion in 2012/13.
Transnet initially applied for a 22.6% increase in its allowable revenue, which would have resulted in a 4.72c/l increase in inland petroleum product prices.
Nersa initially published a draft tariff determination for public comment proposing a 7.3% increase in allowable revenue.
In making its decision, the regulator weighed public interest, regulatory certainty, Transnet’s New Multiproduct Pipeline project reaching its capital expenditure peak and current and future debt funding.
“In Nersa’s view, this will strike a satisfactory balance between the various factors that Nersa had to consider,” the regulator said in a statement.
Meanwhile, Nersa called on Transnet to outline a proposed system of penalties to be included in future tariffs. The organisation aimed to ramp up efficiencies by penalising Transnet customers causing inefficiencies in the operation of the pipeline system.
Nersa cited not delivering slugs to the pipeline on schedule or the failure to take delivery of slugs of petroleum on schedule as actions that could be penalised.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation