Chief among them inFels’ interim report is the proposed creation of a state-owned tolling authority – known as State TollCo – to take back control of motorway charges and to set toll prices.
Fels made clear on Monday that legislation would be needed to set up the state’s de facto tolling regulator,partly to avoid the government getting bogged down in legal disputes with Transurban and other large investors who have multibillion-dollar interests in toll roads.
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It runs the risk of setting the government up for a fight with Sydney’s king of tolling. Transurban is the 800-pound gorilla that Fels did not shy away from calling out for its monopoly status. It controls 11 of Sydney’s 13 toll roads including WestConnex.
Pre-empting Fels’ interim report,Transurban has been on the charm offensive recently,spruikingfuel discounts. Under new chief executive Michelle Jablko,Transurban signalled late last year that it will give more incentives to motorists using its toll roads.
The company was nuanced in its public response on Monday to the Fels review but peak body Infrastructure Partnerships Australia did not hold back. It said unilaterally legislating to alter existing contracts was “reckless” and should be ruled out.