Petroleum Pipelines Act, 2003 (Act No. 60 of 2003)Chapter 3 : Licences28. 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. |