herry-warsaw-presentation – 07-06-12.ppt mot&wb- charging-ws - road user charging in bulgaria...

Herry-Warsaw-Presentation – 07-06-12.ppt

MOT&WB- Charging-WS - Road User Charging in BULGARIA - Warsaw, 11-12 June 2007

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Ministry of Transport & World Bank

Workshop on Road User Charging Systems

ROAD USER CHARGING

in BULGARIA

Dr. Max Herry, HERRY Consult, Vienna

Warsaw, 11-12 June 2007



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• Time related user charge system was introduced in Bulgaria since April 1, 2004 with the amendment of the Roads Act and respective by-laws:

• Regulation on vignette system and Tariff # 14 on the charges collected in Ministry of Regional Development and Public Works system.



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The system was introduced in two steps:

• April 1, 2004 for freight vehicles and buses with more than 8+1 seats and

• January 1,2005 for all vehicles, including the passenger cars.

• In April – December 2004 only paper vignettes containing the registered vehicle license plate number were issued. Since January 1, 2005 vignette stickers are in place.



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• The current vignette network coincides at large extend with the National Road Net-work (NRN), the total length of the latest being 19,276 km.

• Exempted of vignette charges are the NRN sections in residential areas, suburbs of some of the cities and by-pass roads, as well as the Sofia Ring Road.



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• Subject of vignette charge are: both Bulgarian and foreign vehicles using the above vignette network.

• They are classified into three categories, as follows:



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I. All vehicles with more than 2 axles designated for trans-portation of freight and all other vehicles not covered bycategory II or III with more than two axles.

II. Vehicles for passenger transport with more than 8 seats (excluding the driver’s seat), normally busses,regardless the number of axles; and all other vehiclesnot covered in the category I or III with 2 axles

III. Vehicles for passenger transport up to 8 seats (without driver seat) with 4 or more wheels, but without regard to the number of axles; normally passenger cars, mini-busses, and motor homes, but no motorcycles.



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For (almost) all above vehicle categories the same set of vignettes are offered:

• DAILY VIGNETTE (not for cars)

• WEEKLY VIGNETTE good for 7 days in a row including the day of issuing;

• MONTHLY VIGNETTE valid until the same day in the following month. If this day is non-existing, the vignette is good until the last day of the following month;

• ANNUAL VIGNETTE covering the time between January 1 through January 31 of the following year (13 month).

According to the Roads Act daily vignettes for (almost) all vehicle categories has been introduced from January 1, 2007.



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The vignette stickers distribution system comprises almost 2,500 outlets, as follows:

• 1,300 post offices

• 1,138 DZI Trans offices, incl. OMV and Petrol fuel stations and

• 50 regional and border offices of Roads Executive Agency (REA).

Vignette stickers for foreign vehicles, which differ from those for vehicles registered in Bulgaria (different price and thus different shape) could be bought form the 23 REA border offices only.



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However, because of the gradual price alignment schedule agreed with the EC, after January 1, 2007 the vignette charges for domestic and foreign shall be equal.

Because of this the foreigners shall have the right to buy vignette stickers not only at the borders but inside the country as well.



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VIGNETTE PRICES

According to the commitment taken by the Bulgarian government from of January 1, 2007 the vignette prices for domestic and foreign vehicles shall be equal.

EUR Daily Weekly Monthly Yearly"trucks" 10 56 153 485"Busses" 10 33 87 256"Cars" - 5 13 34



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• According to our forecast 2005, revenues were estimated at BGN 154 million and the real ones were some 145 million.

• Nevertheless, the (new) REA top management complains of the low level of revenues, especially having in mind that the general road network condition is worse than ever.



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Preliminary Assessment

Acceptance Surveys

Assessment of Acceptance

Assessment of Prices

Important Remarks to the EC Document“Com (2003) 448 EN (Tarfication Eurovignette)“

Conclusions / Summary

HERRY 2003

Assessment of Revenues

Assessment of Tickets



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Some conclusive remarks!



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Application of the EUROVIGNETTE

Directive 2006/38/EC



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Application underestimated!

Just a few examples:



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Measures set due to this Directive should be:

• Non discriminating

• Appropriate



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For instance:

• Price relationship for HGV DAILY and YEARLY vignette

should be about 1 : 100.EUR Daily Weekly Monthly Yearly

"trucks" 10 56 153 485"Busses" 10 33 87 256"Cars" - 5 13 34



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Maximum Principle: Tolling CARS + TRUCKS must not be more than

IS costs!

But, RP for cars and trucks will be taken arbitrary, often.



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• But, there is a strong relationship:

1. IS costs

2. Allocation of (IS-)costs

3. That is the Maximum for RP of cars AND trucks all together!



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• But, this principle can be used as a solution of difficulties, as theCar-Truck-Difficulty in PL:

1. Total IS costs

2. Division of these IS costs for the Vignette IS part and the Toll IS part

3. IS cost allocation to each of the vehicle group as a Maximum of RP depending on the traffic on the different IS parts!



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• The problem is, if using this “Rule”,

- that after setting the RP the trafficis changing,

- so, that the allocation has to be done again, and so on.

• BUT, this algorithm is converging!

• The converging solution is the finalsolution!



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• Politicians, especially in the new EU countries regards the (RP) revenues “as his own” - regardless:

- of the economic power or

- the WTP of the economy respectively the private sector.

• RP has – in this case – one function, only: “create” money!



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• So, for example

• in BG.



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Thank You,Thank You,

For Your Attention!For Your Attention!

herry-warsaw-presentation – 07-06-12.ppt mot&wb- charging-ws - road user charging in bulgaria...

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