Electricity Pricing and Tariff Studies
PPA has gained considerable experience in undertaking electricity pricing and tariff studies, and in assisting regulators with their role.
The company's experience in this area is wide ranging and includes the following general areas:
- conventional study of tariff structure and levels for a vertically-integrated utility
- transmission pricing study for a multi-nation power pool
- benchmarking utility performance against international best practice
- strict-LRMC studies to support tariff structure reform lobbying by a major consumer.
Recent assignments include:
Ethiopia
Senior Tariff Specialist inputs to the Electricity Tariff Study for EEPCO. Particular responsibilities included the determination of long-run marginal costs and recommendations on tariff structures and levels
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Jamaica
PPA assisted the Office of Utilities Regulation, with the development of a new tariff regime, the structure and levels of which were designed to provide incentives to the service provider to improve the efficiency of both service delivery and consumers’ end-use of electricity.
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Cayman Islands
PPA provided advice to the Government, through the Auditor General, on aspects relating to the regulation of CUC.
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South Africa
PPA examined alternative methods of pricing the reliability of transmission services, taking account of differing electricity market structures and regulatory regimes.
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Southern Africa Power Pool
PPA undertook a Wheeling Study for SAPP in order to design a system for wheeling charges for transactions between member utilities in order to promote the efficient trade in electricity and allow countries to move towards a more integrated, competitive market as they reform their respective power sectors. In a follow-up assignment, PPA conducted an extension of the wheeling charges study in order to develop software that will automate the determination of wheeling transaction charges.
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Kenya
PPA conducted a review of projected operational costs and capital expenditure of the power industry in Kenya, including KenGen, KPLC and IPPs in the country.
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Ethiopia
Tariff Specialist providing advice to EEA on tariff-setting mechanisms for licensed supply schemes established under the Rural Electrification Fund.
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St Lucia, Dominica and Guyana
PPA was sub-consultant to Frontier Economics for the Caribbean electrical tariff structure study, and was responsible for technical aspects of the study.
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Bahamas
PPA undertook the development of LRMC-based tariffs on behalf of a very large commercial organisation and major consumer of electricity that was lobbying for a revised tariff structure that recognised the lower costs incurred by large commercial consumers.
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For details of PPA’s experience in electricity pricing and tariffs, please contact Don Webster.
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