Transnet Accuses Sasol and TotalEnergies of Short-Paying Tariffs, Initiates Lawsuit
Johannesburg, August 28, 2023 – Transnet, the state-owned freight transport and logistics company, has made serious allegations against Sasol and TotalEnergies, accusing the energy giants of short-paying tariffs related to the use of its pipeline for the transportation of crude oil. Transnet has taken legal action against Sasol, demanding R815 million, and TotalEnergies, seeking R461 million, alleging underpayment for the use of the pipeline that transports crude oil from Durban to the Natref refinery in Sasolburg, Free State.
Tariff Dispute Unveiled
The dispute between Transnet and the energy corporations centers around the tariffs set for the use of the pipeline infrastructure. Transnet claims that Sasol and TotalEnergies have consistently underpaid these tariffs for the movement of crude oil. The alleged short-payments are said to have accumulated over a period, leading Transnet to take the matter to court to recover the outstanding amounts.
Business Day says, “Transnet says the amounts it is claiming from the two companies arise from invoices issued for services rendered for the period after the termination of the variation agreement. The amounts on the invoices rely on tariffs set by the National Energy Regulator of SA (Nersa).”
Legal Action Initiated
Transnet’s decision to pursue legal action marks a significant escalation of the dispute. The state-owned entity has lodged a lawsuit against Sasol, seeking a payment of R815 million, and against TotalEnergies, aiming to recover R461 million.
According to Business Day, “Transnet says the amounts it is claiming from the two companies arise from invoices issued for services rendered for the period after the termination of the variation agreement. The amounts on the invoices rely on tariffs set by the National Energy Regulator of SA (Nersa).
Transnet says the invoices were not settled in full as the companies claimed the SOE was under a legal obligation to discount the tariff it charged them.
Transnet, which holds a licence to operate SA’s petroleum pipeline system, contends in its legal papers that it is not obliged to discount the tariff if Nersa has not approved a discounted tariff.”
Energy Giants Respond
Both Sasol and TotalEnergies have responded to the allegations. Sasol stated that it believes the tariffs are in line with the agreements and that it will defend itself against the lawsuit. Sasol’s argument is that by charging it the “maximum tariff”, Transnet exercised coercive power over it.
TotalEnergies also asserted that its actions have adhered to the contractual terms and that it will engage in the legal proceedings to address the dispute.
The matter is expected to be aired in the courts in the next few months.
Last week the high court in Johannesburg dismissed Sasol’s interlocutory application to compel Transnet to hand over documents related to how it set the tariff. The judgment reads as follows:
“All this court knows is that Sasol unilaterally paid a lesser amount. The court does not have the benefit of knowing how that lesser amount was arrived at. The question which falls for determination is why this court is to direct discovery to be made of documents which will explore what the lesser tariff should have been when Transnet’s case does not depend on it nor does Sasol’s case depend on a finding as to what the lesser ‘correct’ tariff should have been.”
As the lawsuit progresses, the case will provide insights into the legal and regulatory aspects of these industries and may impact how similar disputes are managed in the future.