Financial Modelling for Utility Tariff Setting 2024

Financial Modelling for Utility Tariff Setting 2024

Course curriculum

1. Welcome to the Course
1. Programme Team
1. Dr Peter Twesigye
2. Dr Martin Rodriguez Pardina
3. Haydn Palliser
1. Pre Course Basics and Test run
2. Pre Course Live Overview
1. Pre-Video 01 | UCT Course Introduction
2. Pre-Video 02 | The Rationale for Regulation
3. Pre-Video 03 | Incentives for Productive Efficiency
4. Pre-Video 05 | Estimating Revenue Requirements | (B) Example
5. Pre-Video 06 | NPV Function
6. Pre-Video 07 | IRR
7. Pre-Video 08 | Excel functions - Anchoring
8. Pre-Video 09 | Excel functions - IF Function
9. Pre-Video 10 | Excel functions - IF(OR) and IF(AND) statement
10. Pre-Video 11 | Excel functions - SUMIF Function
11. Pre-Video 12 | Excel functions - LOOKUP Function
12. Pre-Video 13 | Best Practice - Principles
13. Pre-Video 14 | Best Practice - Flags and Conditional Formats
14. Pre-Video 15 | Best Practice - Styles
15. Pre-Video 16 | Best Practice - Control Accounts
16. Pre-Video 17 | Excel shortcuts and Introduction
17. Pre-Video 18 | Final Model Overview
18. EXERCISE | Excel Shortcuts download
1. DAY 1 | Pre-course Reading 01 | Demise of the standard reform model
2. DAY 1 | Pre-course Reading 02 | Making power affordable in Africa and viable for its Utilities
3. DAY 1 | Pre-course Reading 03 | ECA - Two approaches to tariff design in the electricity sector – how different are they?
4. DAY 2 | Pre-course Reading 04 | RAB Depreciation Notes
5. DAY 2 | Pre-course Reading 05 | Cost Recovery and Financial Viability of the Power Sector in Developing Countries
6. DAY 2 | Pre-course Reading 06 | Financial viability of Power Utilities in Africa_October 2016
7. DAY 3 | Pre-course Reading 07 | Accounting for Infrastructure Regulation
8. DAY 3 | Pre-course Reading 08 | Taking Stock of Economic Regulation of Power Utilities in the Developing World
9. DAY 4 | Pre-course Reading 09 | Resetting Price Controls for Privatized Utilities
10. DAY 5 | Pre-course Reading 10 | References - Reading Material
11. DAY 5 | Pre-course Reading 11 | Revisiting Power Sector Reforms in Africa
1. Introduction to Excel Shortcuts
2. Simulation Model
1. Mandatory Case study: Participants must read this in advance to be able to model the specific features of each case step
1. Pre-Course Quiz
1. Monday | 15 April 2024
2. Wednesday | 17 April 2024
1. DAY 1 | Time-Table
2. DAY 1 | Overview
3. VIDEOS
4. LECTURE PRESENTATIONS
1. Video 01_Lesson 00 | Utility overview and definition of case study
2. Video 02_Lesson 00 | Final Model Overview
3. Video 03_Lesson 00 | Excel shortcuts and Introduction
4. Video 04_Lesson 00 | Part 1 | Overview of economic and regulatory methodologies
5. Video 05_Lesson 00 | Part 2 | Overview of economic and regulatory methodologies
6. Video 06_Lesson 00 | Introduction to Economic and Financial Regulatory Models
7. Video 07_Lesson 00 | Regulatory Asset Base
8. Video 08_Lesson 00 | Rolling forward the regulatory asset base
9. Video 09_Lesson 00 | Economic sustainability and revenue requirements
10. Video 10_Lesson 00 | Financial sustainability
11. Video 11_Lesson 00 | RAB building blocks - accounting approach, single year (Part A)
12. Video 12_Lesson 00 | RAB building blocks : Return caps
13. Video 13_Lesson 00 | RAB building blocks : Accounting Approach , Single Year (Part B)
14. Video 14_Lesson 00 | RAB building blocks : Accounting Approach, Multi Year
15. Video 15_Lesson 00 | RAB building blocks : Cash Approach, Single Year (Part A)
16. Video 16_Lesson 00 | RAB building blocks : Cash Approach, Multi Year (Part B)
17. Video 17_Lesson 00 | RAB building blocks : Proof of cash approach
18. Video 18_Lesson 00 | RAB building blocks : Accounting vs Cash Approach
19. Video 19_Lesson 00 | Sensitivities and Scenarios (recap)
20. Video 20_Lesson 00 | Data Tables (recap)
1. DAY 1 : Modeling 2024
1. DAY 1 | Quiz
1. DAY 1 | Class Recording
1. DAY 2 | Time-Table
2. Day 2 | Overview
3. VIDEOS
4. READINGS
5. LECTURE PRESENTATIONS
1. Video 21_Lesson 00 | Objectives of economic regulation
2. Video 22_Lesson 00 | Regulatory Regimes
3. Video 23_Lesson 00 | Regulatory Instruments
4. Video 24_Lesson 00 | Modeling Alternatives
5. Video 25_Lesson 00 | Depreciation
6. Video 26_Lesson 00 | Regulatory treatment of depreciation
7. Video 27_Lesson 00 | Regulatory treatment of investments
8. Video 28_Lesson 00 | Investment types (replacement, expansion, quality)
9. Video 29_Lesson 00 | Part 1 | Demand projections
10. Video 30_Lesson 00 | Part 2 | Demand projections
1. DAY 2 | Modelling
1. DAY 2 | Quiz
1. DAY 2 | Class Recording
1. DAY 3 | Time-table
2. DAY 3 | Overview
3. VIDEOS
4. LECTURE PRESENTATIONS
1. Video 31_Lesson 00 | Cost of Capital and WACC
2. Video 32_Lesson 00 | Weighted average cost of capital (WACC)
3. Video 33_Lesson 00 | WACC extended _Cost of Debt
4. Video 34_Lesson 00 | WACC extended_Cost of Equity
5. Video 35_Lesson 00 | Risk versus Returns
6. Video 36_Lesson 00 | Part 1 | Country risk premium
7. Video 37_Lesson 00 | Part 2 | Country risk premium (credit ratings approach)
8. Video 38_Lesson 00 | Role of Parties and Contractual Cashflow
9. Video 39_Lesson 00 | Allocation of Risk
10. Video 40_Lesson 00 | Opex - Benchmarking
11. Video 41_Lesson 00 | Efficiency factors
12. Video 42_Lesson 00 | Regulatory treatment of losses
13. Video 43_Lesson 00 | Adding expansion debt to model
14. Video 44_Lesson 00 | Introduction to 3-way statements
15. Video 45_Lesson 00 | Building a balance sheet and income statement
16. Video 46_Lesson 00 | Retained Earnings
17. Video 47_Lesson 00 | Working Capital
18. Video 48_Lesson 00 | Adding working capital to balance sheet
19. Video 49_Lesson 00 | Way Statement intro slides
1. DAY 3 | Modelling 2024
1. DAY 3 | Quiz
1. DAY 3 | Class Recording
1. DAY 4 | Time-table
2. DAY 4 | Overview
3. VIDEOS
1. Video 50_Lesson 00 | Tariff Structure V2
2. Video 51_Lesson 00 | Part 1 | Designing the tariff structure
3. Video 52_Lesson 00 | Part 2 | Designing the tariff structure
4. Video 53_Lesson 00 | Cost Allocation Principles
5. Video 54_Lesson 00 | Why do capacity payments exist?
6. Video 55_Lesson 00 | Introduction to graphing
7. NOT A VIDEO | Demo Excel_Lesson 00 | Example Excel file used in 3-way statement videos
1. DAY 4 | Model Part 2 | Start
2. DAY 4 | Model Solved
3. DAY 4 | Case Study and Instructions
4. Country Risk Premiums
1. DAY 4 | Quiz
1. DAY 4 | Class Recording
1. DAY 5 | Time-table
2. DAY 5 | Overview
3. VIDEOS
1. Reference Papers
2. Twesigye | Structural Governance
3. Twesigye | Understanding structural governance and regulatory incentives for improved utility performance
4. Utility Performance _ Behavior in Africa Today | Ani Balabanyan
1. Optional Video 01_Lesson 00 | Final Model Overview
2. Optional Video 02_Lesson 00 | NERSA's cost of supply methodology
3. Optional Video 03_Lesson 00 | Multi-year tariff framework in South Africa
4. Optional Video 04_Lesson 00 | Tariffs for SSEG
5. Optional Video 05_Lesson 00 | SSEG Compensation Schemes
6. Optional Video 06_Lesson 00 | Municipal SSEG success stories
7. Optional Video 07_Lesson 00 | Case study model overview
1. COURSE FEEDBACK SURVEY
2. LECTURER EVALUATION | Peter Twesigye
3. LECTURER EVALUATION | Martin Pardina
4. LECTURER EVALUATION | Haydn Palliser
1. DAY 5 | Class Recording
1. Presentation: Summary of Modelling

About this course

Free
149 lessons
48.5 hours of video content