Acquisition and operating costs of the electronic toll system drew 50 % of the income in the first five years
Press Release – May 13, 2013
The Supreme Audit Office performed an audit of the electronic toll system costs, its income, and time slip marketing revenues. Auditors also scrutinized the customs authorities that impose and collect fines related to the electronic toll system. The audited period extended from 2009 to 2011.
Although the original aim of the electronic toll collection´s implementation was met - i. e. sufficient financial sources for road infrastructure development were gathered - the total acquisition costs were high and it was necessary to increase the road usage tariffs. From 2007 to 2011, the electronic toll system generated income in the amount of CZK 31,300 million, but the collection costs got to CZK 15,600 million, i. e. nearly 50 % of the collected amount. With the time slip sales, the ratio of costs to revenues only reached 7.4 % in the period 2009-2011.
In 2011 and 2012, the road usage tariff went up by 25 %. However, the increased prices did not positively affect the toll collection and even caused bigger system´s operating costs, because of (among other reasons) low tariff for vehicles in the emission category EURO V and related expenses. The Road and Motorway Directorate of the Czech Republic (RMD) estimated the impact´s value to have been CZK 685 million in 2011 and CZK 815 million in 2012. RMD expects that the collection drop caused by the EURO V emission category decreased tariff will further deepen in the future.
The Ministry of Transport made an agreement concerning increase in benefits for general provider, which was unfavourable for the state. General provider was entitled for higher benefits on the condition that the service is more than 95 % successful with required monthly toll transactions. As the condition was always met during the period 2007-2011, the RMD paid benefits in the total amount of CZK 755.2 million. The SAO criticized the benefit agreement as it could not affect the general provider´s rewards in accordance to the progress of the toll collection system implementation or the higher tariffs´ impacts. The RMD also ordered and paid an external expert to check up on the provided services. The expert´s services cost CZK 113.5 million in the period 2007-2011.
It is possible to pay the toll by payment and fuel cards. In the agreement, the Ministry of Transport underestimated the number of car owners, who would use this payment method. During the period 2007-2011, the RMD paid CZK 499.5 million to the general provider for payments by cards, which had not been figured in the agreement. The RMD also ordered an expert assessment of this extra-contractual requirement, which cost CZK 810,000.
It took three years before the RMD started to detect and account for toll evasions. In 2009, the RMD hired an attorney´s agency and a company for collecting claims; the agreement included providing legal services as well as creating a software application, which cost nearly CZK 40 million. Yet other state administrative institutions usually perform such administrative works on their own.
The attorney´s agency and the company for collecting claims charged for continually provided services, which included legal advices, a monthly bonus in the amount of CZK 285,000 and also charged a fixed hour rate for extra required legal consultations in the amount of CZK 2,500-3,500. The services cost CZK 56.8 million in total. The amount of exacted toll only amounted to CZK 18.3 million. Thus, the revenue from 1 CZK spent for the agency´s services and the claim collecting company only made CZK 0.32.
The audit findings revealed that the evidence of vehicle keepers who use the advance payment mode brings numerous problems as well. The data recorded in the evidence are correct only with 33 000 (7 %) out of 476 000 vehicle keepers. The evidence´s incompleteness makes it difficult to identify debtors, which was the main reason for write-offs in the total amount of CZK 311.6 million.
Mobile watch teams from the Czech Customs Administration provide for in-the-field inspections of toll collection. The cost of such check-ups reached CZK 708 on average and the average cost of on-the-spot fines made CZK 4.6 for each claimed 1 CZK.
For further details about the auditing operation No. 12/12 (in Czech only), see the following link: http://www.nku.cz/assets/media/informace-12-12.pdf (384 kB).
Communication Department
Supreme Audit Office