Regulation and Electricity Tariff Setting

Learning Goals

• understand the regulatory fundamentals and obtain an enhanced understanding of the price regulation methods
• become familiar with the technical details used in the regulatory revenue settings, cost of capital, efficiency analysis and quality of supply regulation.
• be trained in the area of electricity pricing including servicing the whole electricity industry.

The conceptual part of the training will be supported by comprehensive practical exercises throughout the course.

Target Audience

• Everyone involved in regulated electricity industry
• Employees of regulated companies,
• Representatives of industry associations,
• Staff of regulatory authorities,
• Officials from policy making institutions
• Staff with no prior regulatory or tariff setting experience

Prerequisites

• None
• This course serves as a primer for several learning series to prepare trainees for more in-depth follow-on courses.

Learning Method

• Insightful presentations
• Review of real-world case studies
• Practical examples

Course Content

• Regulatory fundamentals (areas, scope & methods)
• Determination of the allowed revenue
• Cost of capital
• Efficiency analysis
• Quality of supply regulation
• Electricity pricing

Each module is accompanied by examples and practical exercises.

AGENDA

Regulation and Electricity Tariff Setting  

Day 1:

4 hours (including break): 9am – 13:00 CET

• Introduction to Economic Regulation: Fundamental economic principles, areas of regulation (why, what, where and how)
• Setting Allowed Return – (Weighted Average Cost of Capital): approaches to derive the WACC for regulatory purposes

Day 2:

4 hours (including break): 9am – 13:00 CET

• Determination of the revenue requirements: Network regulation and the building blocks approach
• Excel Exercise: Deriving the Revenue Requirements

Day 3:

4 hours (including break): 9am – 13:00 CET

• Electricity Tariff Setting:
  • From Maximum Allowed Revenues to Transmission / Distribution Network Charges
  • Regulatory considerations in tariff setting, tariff design principles
• Excel Exercise: Tariff Setting for distribution and Supply

Price per person (on-line training)

1.700 € per person (before 01.12.2024) for 20.01.2025 Training 1.950€ per person (after 01.12.2024)

1.700 € per person (before 01.02.2025) for 17.03.2025 Training 1.950€ per person (after 01.02.2025)

Location
Remote-Training