Regulator to consider TNPA's proposed 5.0% tariff hike

The Ports Regulator of South Africa will host a series of public hearings around the proposed new tariff application for the 2016/2017 to 2018/2019 period. And, in line with the principle of the regulator requiring the submission of a multi-year tariff application with annual reviews, the TNPA has now submitted its application for tariffs for that 2016-19 period. That is what will be up for discussion at the PR’s roadshows, as they travel around the country’s main centres and port cities in October. And, so readers can prepare their arguments for what are likely to be critical debates at the public hearings, here is a summary of the TNPA’s tariff application. Taking into account the prior year revenue, the estimated volume growth, the revenue after volume growth and the required revenue, the TNPA said this translated into an average tariff adjustment of 5.90% for 2016/17, and indicative tariff adjustments of 12.74% for 2017/18 and 7.63% for 2018/19. In line with the objective of the tariff strategy, the authority has proposed that the average tariff adjustment of 5.90% be differentiated as follows: • 6.80% on marine charges (shipping lines); • 5.90% on exports of dry bulk (coal, iron ore & manganese); and • 5.60% on all other cargo dues. It also attempted to justify its figures by noting that the average tariff adjustment over the three year period was approximately 8.76%. And this, said the TNPA, “is in line with that communicated to stakeholders at the launch of the market demand strategy (MDS) that tariff adjustments would be within the consumer price index (CPI)+3% range”. The public hearings will be held in Durban on October 1; Johannesburg on October 2; Port Elizabeth on October 5; and Cape Town on October 6. Registration to attend these events closes on Friday, September 25. You can download the TNPA’s application from the Ports Regulator’s website: www.portsregulator.org