TRANSNET LODGES A COMPLAINT WITH NERSA OVER ‘UNFAIR’ PIPELINE TARIFF

TRANSNET has lodged a complaint with the National Energy Regulator of South Africa (Nersa) to prevent discriminatory pricing in the transport of crude oil imposed by a historical agreement between Transnet, Sasol and Total. Transnet said in a statement yesterday that the “unfair pricing mechanism,” which was concluded in the apartheid era between the government and

Natref – the inland refinery owned by Sasol and Total – had not been regulated or approved by Nersa.

Transnet said if left unchecked, it would have negative consequences for fuel consumers, as the shortfall imposed by the discriminatory pricing would need to be recovered by Transnet from other customers. This would impact all customers using the Transnet pipeline network that transports petrol, diesel and jet fuel. “The increase would ultimately be felt by every inland province, with the expected result being a rise in petrol costs,” Transnet said. Transnet requested Nersa to investigate Natref’s failure to abide by Nersa tariffs. The Neutrality Agreement, as it was known, had the objective of ensuring that Natref was not disadvantaged by operating an inland refinery, in respect of the tariffs applicable, when compared to coastal refineries. At the time, Natref alleged it was at a disadvantage due to transport costs. Since its establishment, Nersa has been setting pipeline tariffs. Natref has been paying tariffs set by Nersa under protest.