AA applauds Nersa's pipeline decision

The Automobile Association has welcomed the decision by the National Energy Regulator of South Africa (Nersa) to reduce Transnet’s pipeline tariff.

Nersa turned down Transnet’s request for an 82,5% pipeline tarrif increase and cut the existing tariff by 10,38%.

Transnet has been planning to build a new R12,7-billion pipeline from Durban to Gauteng.

In a statement on Tuesday, the AA said the decision would result in a saving for Gauteng’s motorists.

“The decision by Nersa has been enthusiastically welcomed by the AA as it would appear that common sense has prevailed on this issue.

“What has also become clear during the process is that the built-in checks and balances have been applied and the rules adhered to”, said Gary Ronald, spokesperson for the AA.

“In effect, precedent has now been established where new projects may not be funded through a levy or tax on existing infrastructure,” he said.

On Monday, Nersa announced it had decided to reduce the tariff originally applied for by Transnet.