Vol. 427, No. 21980, 19 January 2000
GENERAL NOTICE
Notice 155 of 2001
THE 2001/02-2005/06 AIRPORTS COMPANY OF SOUTH AFRICA REGULATING COMMITTEE
PERMISSION TO LEVY AIRPORT CHARGES
It is hereby published for general notice that on 19 January 2001 the Regulating Committee, established by section 11 of the Airports Company Act, 1993 (Act No. 44 of 1993), issued in terms of section 12 (5) of the said Act to the Airports Company the permission set out in the Schedule.
M. R. RWELAMIRA
Chairperson: Regulating Committee
SCHEDULE
In this Schedule any word or expression to which a meaning has been assigned in the Aviation Act, 1962 (Act No.74 of 1962) or the Airports Company Act, 1993 (Act No.44 of 1993), shall have the meaning so assigned to it, unless the context otherwise indicates.
Subject to the provisions of the Airports Company Act, 1993 (Act No. 44 of 1993), the Airports Company of South Africa (the Company) is hereby authorised to levy airport charges and conduct relevant activities from 1 April 2001-31 March 2006 on the following conditions:
The structure of airport charges shall, for the period of validity of this permission, be amended to incorporate 85% of the right to trade fee into the airport charges. The remainder of this tariff structure will be of the same mathematical format and apply under the same circumstances as immediately before the date of the issuing of this permission.
in the event of the Company contemplating modifying the structure of airport charges, the Company shall satisfy the Regulating Committee that the resultant charges will have the same material effect as the conditions on airport charges of this permission.
- Notwithstanding subsection (5), the Company shall submit annually to the Committee a report on the implementation of the adjusted tariff structure.
(a) The Company may during the period of validity of this permission alter the level of air traffic service charges to the maximum limit set by the following formula:
if 0,67 * CPIFt < CPI < 1,33 * CPIFt
then RWPTIt< < (CPlt -XI + CFt) + K
or
if 0,67 * CPIFt> CPIt > 1,33* CPIFt
then ERWPTIt < (CPIt * CXt + CFt) + Kt.
where-
ERWPTIt = the sum of the revenue weighted percentage tariff increases in airport charges in year t E(Pit -Pi(t-1) / EPi(t-1)) CPIFt = the forecast percentage increase in the Consumer Price Index in year t CPIt the percentage increase in the Consumer Price Index in year t calculated as the increase between 31 March of year t and 31 March of year (t- 1) Xt = the subtractive X factor for year t CFt = the correction factor for year t, which shall be completely corrected for during year t CPI(t-1) -X(t-1) + CF(t-1) -(ERWPTI(t-1) -K(t-1)) * (1 + Pr(t-1)) if 0,67 * CPIF(t-1) < CPI(t-1) < 1,33 * CPIF(t-1) or
= CPI(t-1) *X(t-1) + CF(t-1) -(ERWPTI(t-1) -K(t-1))) * (1 + Pr(t-1)) if 0,67 * CPIF(t-1) > CPI(t-1) >_ 1,33 * CPIF(t-1) Kt = the K factor for year t CXt = the multiplicative X factor for year t where- = (CPIFt -Xt) / CPIFt Pr(t-1) = the time-weighted average predominant prime overdraft rate in year (t-1) Pit = level of tariff i in year t (b) CPIFt, as determined by the independent forecast for the regulating Committee shall be:(c) X shall be:5.1 % in financial year 2001 /02
5.2% in financial year 2002/03
4.5% in financial year 2003/04 ;
4.6% in financial year 2004/05; and
4.5% in financial year 2005/06.(d) No K-7% in financial year 2001 /02
-6% in financial year 2002/03
-6°/a in financial year 2003/04 ;
-0.7% in financial year 2004/05; and
1.4% in financial year 2005/06.The level of X is set to enable the Company to reach a 16% rate of return in year 2005/06.
(e) Correction Factor
(f) The airport charges for 2001 /02 shall be implemented over 11 months.The correction factor for 1999/2000 has been determined and has been factored into the proposed tariff increases for the 2001 /02.
The Company shall furnish the Regulating Committee with such information as may be agreed upon from time to time; and in the absence of such agreement any information as may be requested by the Regulating Committee in order to enable the Committee to apply the conditions of this permission.
Notwithstanding subsection (5), the Company shall submit annually to the Committee an audited report setting out how the main underlying assumptions of the business plan on which this permission is based compare to actual events.
The Company shall maintain the level of service of any relevant activity at the same level or higher as that provided immediately before the date of the issuing of this permission. Provided that the Company may alter a level of service only if -
- the Company has applied to the Regulating Committee for the approval of such an alteration;
the Company has satisfied the Regulating Committee that such an alteration will not materially affect users of any such relevant activity.
The Company shall be responsible for the monitoring on a regular basis of those relevant activities at Company airports as may be agreed from time to time between the Company and the Regulating Committee. In the absence of such an agreement, the Regulating Committee shall determine those relevant activities at Company airports to be monitored. The Company shall report the results of such monitoring to the Regulating Committee in the format and at such intervals as the Committee may prescribe from time to time.