The annual tariff escalation will be done strictly on the basis of what was negotiated and agreed to between the DHA and the private concessionaire. The agreed principle will then be provided for in the concession agreement as the sole basis of escalating the tariffs.
For example, the concession agreement may stipulate that the annual tariff escalation will be linked to inflation, as calculated by StatsSA. Once this is agreed to, it becomes the only way that the concessionaire can escalate the tariffs.
END