The Economic Regulation of Transport Act, 2024 (Act No. 6 of 2024)Chapter 3 : Economic Regulation of Transport Facilities and ServicesPart C : Complaint Investigations by Regulator21. Directed price control reduction |
| (1) | In the circumstances contemplated in section 18(e), 19(2) or 20(5)(b), the Regulator may direct a reduction in the current applicable price control for any facilities or services provided by a regulated entity. |
| (2) | When determining an appropriate reduction, the Regulator must consider the following factors— |
| (a) | the nature, duration, gravity and extent of the contravention or other conduct; |
| (b) | the market circumstances in which the contravention or other conduct took place; |
| (c) | any undue increase in profit directly derived from the contravention or other conduct; |
| (d) | any loss or damage suffered by third parties as a result of the contravention or other conduct; |
| (e) | any potential negative effect on third parties resulting from the reduction; |
| (f) | the ability of such a reduction to correct any economic distortion resulting from the regulated entity’s conduct; |
| (g) | any similar previous contraventions or similar conduct by the respondent; and |
| (h) | the level of cooperation of the respondent during the investigation. |
| (3) | A reduction in terms of this section— |
| (a) | applies only from the date on which the Regulator issues a directive in terms of this section; |
| (b) | may be either— |
| (i) | temporary, for a period determined by the Regulator; or |
| (ii) | permanent, until the expiry of the price control that is being reduced; |
| (c) | may apply to all, or any particular facilities or services to which the price control applies; and |
| (d) | must not be included in the consideration of price controls in the next price control determination cycle. |
| (4) | The total annual financial cost of the reduction to the regulated entity may not exceed more than 10% of the entity’s annual turnover of its regulated business during the regulated entity’s preceding financial year. |
| (5) | When a reduction has been imposed, the regulated entity must take reasonable steps to publicise the fact of the reduction and the extent, duration and reason for the reduction. |