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Acsa takes regulator to court

Apr 07 2010 08:36 James-Brent Styan

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Johannesburg - The Airports Company of South Africa (Acsa) is taking its regulator to court over the latest tariff increases it has been awarded.

Acsa says the regulator made unauthorised changes to the methods used to determine its price increases.

The Airports Company Act clearly states that the regulator needs the permission of the minister of transport before making changes to its methodology, maintained Acsa spokesperson Nicky Knapp on Tuesday evening.

Knapp said Acsa wanted the court to order critical analysis and investigation into the existing regulatory regime and the regulator's procedures to ensure the predictability of the process and future certainty, transparency and fairness.

Acsa was looking for a long-term solution to the regulatory framework which currently constrained the company's ability to plan for the medium and long term.

The court documents were lodged on Tuesday. On March 31 the regulator announced that Acsa's tariffs could rise 40.7%, after having previously declared it believed a 59.9% increase would be granted.

Acsa had initially requested a 132.9% hike.

Regulator chairperson Mohammed Sizwe said that the regulator stood by its decision and would oppose the court application.

The interesting thing, he declared, was that Acsa was not questioning the content of the decisions, but the procedures followed.

The regulator, however, believed it was standing on firm ground and was prepared for any legal steps.

The regulator, said Sizwe, had met with the minister of transport shortly before the increases were announced, and the minister had been positive about the decision.

- Sake24.com

For business news in Afrikaans, go to Sake24.com.



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