Pretoria - The National Energy Regulator of SA (Nersa) has set petroleum pipeline tariffs allowing transport parastatal Transnet a 31.6% increase in allowable revenue.
"Nersa has set petroleum pipeline tariffs that will allow Transnet to realise a 31.6% increase in allowable revenue compared to the 2011/12 tariff period. An increase from R1 957.72 million in 2011/12 to R2 575.92 million in 2012/13," said the energy regulator on Thursday.
This, it said, will strike a satisfactory balance between the various factors that Nersa has to consider.
The parastatal had applied for an 83.3% increase in its allowable revenue that would have resulted in a 12.5 cents a litre increase in inland petroleum product prices. The size of Transnet's application was attributable largely to the fact that a significant part of its New Multi-Product Pipeline (NMPP) will now be operational for the full tariff period under review.
Transnet's regulated assets as a consequence will increase from R9.6 billion in 2011/12 to R20 billion in 2012/13.
The transport and logistics company has raised significant debt to fund the NMPP project while it also sought substantial additional funding to satisfy rating agencies that it had enough revenue to cover its debt repayments.
If the Energy Minister Susan Shabangu decides to use the pipeline tariff as a proxy for the cost of transporting fuel from Durban to Johannesburg, as has been the case in the past, the consequent petrol price rise is expected to be 4 cents per litre which represents a 0.37% increase in the retail price of petrol in Gauteng. The 4 cents per litre tariff increase (in the pipeline tariff from Durban to Johannesburg) represents a 22% increase in the pipeline tariff.
Transnet forecasts an overall 2.5% increase in volumes to be transported in the 2012/13 tariff period.
