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US News Motorways. Why toll prices should increase further

18:45  05 december  2020
18:45  05 december  2020 Source:   ouest-france.fr

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National Highway Authority (NHA) and Frontier Works Organisation (FWO) continue to increase the prices of the toll tax for motorway consumers. And the end result appears in the shape of increased toll tax. It should be noted that this decision has been raised already by a lot of people on

Any road pricing should be part of a comprehensive scheme such as moving to a distance-based HGV levy. Last month it emerged that after years of losses the M6 Toll has finally made a profit. And coffers will no-doubt be further boosted in the months to come with an increase in traffic levels as

Chaque année au premier février, les tarifs des péages sont revus à la hausse bien entendu. Thomas Brégardis, Ouest-France © OUEST FRANCE Every year on February 1, toll prices are of course revised upwards. Thomas Brégardis, Ouest-France

As of February 1, 2021, the increase in motorway prices should average 0.44%. Every year they climb. Several explanations.

The forecast price increases vary between 0.30% and 0.65% depending on the section. Clearly, going to the toll from February 1, 2021 should cost even more.

These increases calculated by the motorway concession companies were presented to the National Road Network Users Committee on Friday. In 2020, the increase was 0.80% on average, against 0.44% next February.

Are these increases inevitable?

Nothing is inevitable, let's say they are based on two factors. The first concerns inflation. The rate change cannot be less than 70% of inflation, according to a 1995 decree. This year, in 2020, the inflation rate would be 0.50% according to the Bank's forecasts de France published in September. So mechanically, the evolution of the price is limited.

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Another explanation, for the highways existing before privatization, the tariffs increase to compensate for investments or additional costs not foreseen in the contracts signed between the State and the motorway companies.

More recently, a political decision has "increased" the toll bill. Because of the tariff freeze, imposed in 2015 by the then Minister of the Environment, Ségolène Royal, the concessionaires had negotiated a catch-up, spread between 2019 and 2023. But also an extension of their concession term. Motorists continue to pay for this catching up in 2021, therefore.

How will this increase be received?

It might have a hard time getting passed on to drivers, since the publication of an Senate report released last September. He points to the profits made by the motorway companies and the excessively long concession period.

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Govt Increases Toll Tax Rates On Motorway | 24 News HD 24 News HD is one of the leading news channels of Pakistan bringing you the latest current affairs

Price Increase Justification. This conversation is never easy to have with customers. After all, who wants to hear that the product your business relies on If you have any further questions or concerns regarding this price increase , please do not hesitate to reach out. Our team is more than happy to

According to the commission of inquiry, profitability would be reached around 2022 for Vinci and Eiffage, while their contracts expire between 2032 and 2036. In other words, the duration of these concessions would be too long by around ten years, explains The report. Beyond 2022, dividends paid to shareholders would reach around 40 billion euros. For two motorway companies (APRR and AREA), which belong to the Eiffarie consortium (a subsidiary of Eiffage), the report even speaks of exceptional profitability.

Is it linked to the privatization of concessions?

The committee also returns to the controversy over the privatization of concessions. The two-step process (partial opening of the capital in 2002, then privatization in 2006) would have cost the State 6.5 billion euros in potential revenue (7.8 billion euros in 2020 value).

It was also in 2006 during the privatization of the highways that the contract was written that the state allowed the highway companies to make these annual increases on February 1.

The government has yet to approve these new 2021 tariffs. If all the dealers have not yet communicated their figures, the final increase should not exceed this average of 0.44%, said the Association of French companies motorways (ASFA).

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This is interesting!