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Petroleum Pipelines Act, 2003 (Act No. 60 of 2003)

Chapter 3 : Licences

28. Setting and approval of tariffs

 

 

(1) The Authority must set as a condition of a license the tariffs to be charged by a licensee in the operation of a petroleum pipeline and approve the tariffs for storage facilities and loading facilities.

 

(2) A tariff charged in terms of subsection (1)—
(a must be—
(i) based on a systematic methodology applicable on a consistent and comparable basis;
(ii) fair;
(iii) non-discriminatory;
(iv) simple and transparent;
(v) predictable and stable;
(vi) such as to promote access to affordable petroleum products;
(b) becomes effective from the date set out in the licence;
(c) must be reviewed by the Authority within the period set out in the licence; and
(d) may be adjusted by the Authority on review.

 

(3) The tariffs set or approved by the Authority must enable the licensee to—
(a) recover the investment;
(b) operate and maintain the system; and
(c) make a profit commensurate with the risk.

 

(4) The Authority must monitor the application of tariffs and take appropriate action when necessary to ensure that they are applied in a non-discriminatory manner and licensees must provide the information required by the Authority in this regard.

 

(5) A licensee may request the Authority to review its tariff from time to time and may submit a proposal to the Authority in this regard, and—
(a) such proposed tariff, if set or approved, comes into effect from the date determined by the Authority;
(b) the existing tariff remains in force until a new tariff takes effect.

 

(6) A licensee may not charge a tariff for the licensed activity in question other than that set or approved by the Authority.

 


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