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Railway firms to apply to Sumatra for review of charges
2008-07-19 09:24:25
By Martha Majura
Railway service providers will now have to file an application with the Surface and Marine Transport Regulatory Authority (SUMATRA) every time they want to introduce new charges for their services.
The regulation will be valid as soon as the improved draft for regulations and rules made by SUMATRA, in consultation with stakeholders and recommended to minister for Infrastructure Development, is approved and subsequently published.
Opening a SUMATRA stakeholders` consultation meeting on Thursday in Dar es Salaam, director general Israel Sekirasa said the authority would consider applications and approve proposed tariffs after reviewing existing ones.
Sekirasa explained that determination of new tariffs would require the applicant to clearly show operational costs, nature of service, the amount and charges payable.
He said the proposed tariffs should also not be discriminatory in nature and take the interests of disadvantaged members of the society into account.
``In determining the tariffs, the authority will use price-setting approaches such as rate of return and price cap. Moreover, we will also conduct an inquiry by appointing officers or a panel, as the case may be, to hear views of the stakeholders on the proposed tariffs,`` said Sekirasa.
He told the stakeholders that the challenge was to know how they could together establish regulations and rules which are easy to apply and administer effectively in serving the ultimate purpose of ensuring safety for passengers and provide reasonable time and efficiency in tariff setting and inquiry.
Chairman of the meeting Judge Lameck Mfalila said the draft regulations and rules which SUMATRA had made were Inquiry Procedure Rules of 2008, Tariff Regulations of 2008 and Railway Regulations of 2008.
Mfalila said the draft for Inquiry Procedure Rules, 2008 intended to establish a procedure for conducting an inquiry under section 18 (1) and (3) of SUMATRA Act, which allows the authority to conduct inquiries before granting, renewing or cancelling a licence or regulate any rate or charge.
``Inquiry procedure rules are important for speedy facilitation of filing and determination of issues subject to inquiry and are supposed to be transparent, simple, efficient and effective for the benefit of the stakeholders,`` he said.
He said the draft on Tariff Regulations aimed at establishing guidelines which would facilitate filing and determination of tariff applications from suppliers of regulated goods and services.
Mfalila said the regulations would guide both consumers and regulated suppliers on procedures of filing applications, method of determination, publication and appeal process.
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