Course Overview : Power Sector Tariffs and Rate-making in Newly Formed Regulatory Bodies in the South Asian Region
WORKSHOP INTRODUCTION:
The South Asia Regional Initiative for Energy Cooperation and Development (SARI/Energy) program was launched in 2000 to build mutually beneficial energy linkages among the countries of South Asia. Since its inception, the SARI/Energy project has made significant contributions to addressing energy sector issues, including; exposing approximately 4,000 participants to TA and Training; disseminating good practices to improving regional energy institutions; supporting harmonization of energy efficiency standards; exploring opportunities for private sector participation in energy sector projects; and undertaking numerous outreach and dissemination activities.
The countries in the South Asian region are at varying stages of development and implementing the Reforms and Restructuring of the electricity sector. In some countries, setting up of Regulatory bodies and regulation is proceeding at a fairly rapid pace, while elsewhere such institutions are at early stages of development. In the early stages of development these institutions face daunting challenges in getting off the ground and making their presence felt in a positive and constructive fashion. Countries in the early stages of regulatory experience can benefit tremendously from the lessons learned of other countries within the region.
A more rational tariff structure for power is among the most important objectives for newly established regulatory bodies. Encouraging financial and economic efficiency through restructuring and regulatory reform of the power sector requires that these bodies establish clear objectives, and transparent mechanisms for the determination of tariffs. This is true regardless of whether the structure of the power sector consists of vertically integrated utilities; or separate, ‘unbundled’ utilities for generation, transmission and distribution; or a transition to such a structure is underway.
A five-day Workshop on ‘Power Sector Tariffs and Rate-making in Newly Formed Regulatory Bodies in the South Asian Region’ was conducted to address the various issues and methods for tariff determination and rate-making applicable to Regulatory bodies in the Region. The Course was conducted in association with National Electric Power Regulatory Authority (NEPRA), in Islamabad from September 26-30, 2005.
WORKSHOP OBJECTIVES:
The workshop provided an in-depth review of the methods for tariff determination techniques and processes for rate-making in the power sector, and their application in countries of the SARI/E region. Recent experiences in the region were in the form of case studies focusing on the application of these methods, the challenges faced, and emerging ways of dealing with these challenges.
WORKSHOP TOPICS & METHODLOGY:
The topics covered in the Workshop included:
A review of country experience in the SARI/E region, and the status of regulation of the power sector in countries of the region
Regulated rate making in a vertically integrated environment: basic principles of ‘rate of return’ (cost of service) pricing
Rate making in an unbundled sector: overview of rate-setting for generation, transmission and distribution
Information and data needs, benchmarking, accounting standards and reporting requirements
Rationalizing tariffs & meeting social objectives through subsidies and cross-subsidies: alternative methods, and their comparative strengths and weaknesses
Transitional issues in the region (introducing competition, pricing network access, incentives for private power producers)
Issues in Distribution: Loss reduction and incentives to improve efficiency, incentive regulation, multi-year tariffs
Consumer perspectives on rate-making
The approach of this Workshop was on a practical experience sharing wherein experience/case studies from the Region were used extensively.
In addition to expert presentations on these topics, the workshop also provided a useful forum for an exchange of experience. The sessions encouraged an interactive approach, and the participants have had hands-on experience in ratemaking exercises (group work) to help in better assimilation of the methods and techniques of tariff setting.
TARGET PARTICIPANTS:
Senior staff of regulatory institutions in the power sector, regulatory cells within the private and public utilities, policy makers and other stakeholders such as large Consumer Organizations/NGOs. Click here for Views of the Participants.
WORKSHOP INTRODUCTION:
The South Asia Regional Initiative for Energy Cooperation and Development (SARI/Energy) program was launched in 2000 to build mutually beneficial energy linkages among the countries of South Asia. Since its inception, the SARI/Energy project has made significant contributions to addressing energy sector issues, including; exposing approximately 4,000 participants to TA and Training; disseminating good practices to improving regional energy institutions; supporting harmonization of energy efficiency standards; exploring opportunities for private sector participation in energy sector projects; and undertaking numerous outreach and dissemination activities.
The countries in the South Asian region are at varying stages of development and implementing the Reforms and Restructuring of the electricity sector. In some countries, setting up of Regulatory bodies and regulation is proceeding at a fairly rapid pace, while elsewhere such institutions are at early stages of development. In the early stages of development these institutions face daunting challenges in getting off the ground and making their presence felt in a positive and constructive fashion. Countries in the early stages of regulatory experience can benefit tremendously from the lessons learned of other countries within the region.
A more rational tariff structure for power is among the most important objectives for newly established regulatory bodies. Encouraging financial and economic efficiency through restructuring and regulatory reform of the power sector requires that these bodies establish clear objectives, and transparent mechanisms for the determination of tariffs. This is true regardless of whether the structure of the power sector consists of vertically integrated utilities; or separate, ‘unbundled’ utilities for generation, transmission and distribution; or a transition to such a structure is underway.
A five-day Workshop on ‘Power Sector Tariffs and Rate-making in Newly Formed Regulatory Bodies in the South Asian Region’ was conducted to address the various issues and methods for tariff determination and rate-making applicable to Regulatory bodies in the Region. The Course was conducted in association with National Electric Power Regulatory Authority (NEPRA), in Islamabad from September 26-30, 2005.
WORKSHOP OBJECTIVES:
The workshop provided an in-depth review of the methods for tariff determination techniques and processes for rate-making in the power sector, and their application in countries of the SARI/E region. Recent experiences in the region were in the form of case studies focusing on the application of these methods, the challenges faced, and emerging ways of dealing with these challenges.
WORKSHOP TOPICS & METHODLOGY:
The topics covered in the Workshop included:
A review of country experience in the SARI/E region, and the status of regulation of the power sector in countries of the region
Regulated rate making in a vertically integrated environment: basic principles of ‘rate of return’ (cost of service) pricing
Rate making in an unbundled sector: overview of rate-setting for generation, transmission and distribution
Information and data needs, benchmarking, accounting standards and reporting requirements
Rationalizing tariffs & meeting social objectives through subsidies and cross-subsidies: alternative methods, and their comparative strengths and weaknesses
Transitional issues in the region (introducing competition, pricing network access, incentives for private power producers)
Issues in Distribution: Loss reduction and incentives to improve efficiency, incentive regulation, multi-year tariffs
Consumer perspectives on rate-making
The approach of this Workshop was on a practical experience sharing wherein experience/case studies from the Region were used extensively.
In addition to expert presentations on these topics, the workshop also provided a useful forum for an exchange of experience. The sessions encouraged an interactive approach, and the participants have had hands-on experience in ratemaking exercises (group work) to help in better assimilation of the methods and techniques of tariff setting.
TARGET PARTICIPANTS:
Senior staff of regulatory institutions in the power sector, regulatory cells within the private and public utilities, policy makers and other stakeholders such as large Consumer Organizations/NGOs. Click here for Views of the Participants.
