Nersa announces petroleum pipelines tariff hike

The National Energy Regulator of South Africa (Nersa) has granted freight logistics group Transnet a lower-than-requested allowable revenue increase for 2018/19 tariff period to cushion end users from the impact of recent fuel levy and value-added tax increases. The State-owned group applied for an increase in allowable revenue of 36% to R5.68-billion in 2018/19, which would have pushed up pipeline tariffs by 28%. However, Nersa has approved only a 26% increase in allowable revenue, which translates to a 19% tariff increase for the Durban-to-Alrode pipeline.