Financial Modelling for Utility Tariff Setting 2025

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 04 | Estimating Revenue Requirements (Part A)
5. Pre-Video 05 | Estimating Revenue Requirements | (B) Example
6. Pre-Video 06 | NPV Function
7. Pre-Video 07 | IRR
8. Pre-Video 08 | Excel functions - Anchoring
9. Pre-Video 09 | Excel functions - IF Function
10. Pre-Video 10 | Excel functions - IF(OR) and IF(AND) statement
11. Pre-Video 11 | Excel functions - SUMIF Function
12. Pre-Video 12 | Excel functions - LOOKUP Function
13. Pre-Video 13 | Best Practice - Principles
14. Pre-Video 14 | Best Practice - Flags and Conditional Formats
15. Pre-Video 15 | Best Practice - Styles
16. Pre-Video 16 | Best Practice - Control Accounts
17. Pre-Video 17 | Excel shortcuts and Introduction
18. Pre-Video 18 | Final Model Overview
19. EXERCISE | Excel Shortcuts download
1. Pre-course Reading 01 | Demise of the standard reform model
2. Pre-course Reading 02 | Making power affordable in Africa and viable for its Utilities
3. Pre-course Reading 03 | Utility Performance and Behavior in Africa Today (World Bank/ESMAP/AfDB) – OPTIONAL
4. Pre-course Reading 04 | In Search of Cost Reflective Tariffs and Cost Allocation Principles: (Peter Twesigye)
1. Introduction to Excel Shortcuts
2. Simulation Model
1. Case Study 1 | Regulatory Treatment of Asset Base
2. Instructions for Case Study 2
3. Case Study 2 | Regulations
1. Pre-Course Quiz
1. Day 1 | Pre-Course | 31 March 2025
2. Day 2 | Pre-Course | 02 April 2025
3. Day 3 | Pre-Course | 03 April 2025
1. DAY 1 | Time-Table
2. DAY 1 | Overview
1. Video 01 | Final Model Overview
2. Video 02 | Excel shortcuts and Introduction
3. Video 03 | Part 1 | Overview of economic and regulatory methodologies
4. Video 04 | Part 2 | Overview of economic and regulatory methodologies
5. Video 05 | Introduction to Economic and Financial Regulatory Models
6. Video 06 | Regulatory Asset Base
7. Video 07 | Rolling forward the regulatory asset base
8. Video 08 | Economic sustainability and revenue requirements
9. Video 09 | Financial sustainability
10. Video 10 | RAB building blocks - accounting approach, single year (Part A)
11. Video 11 | RAB building blocks : Return caps
12. Video 12 | RAB building blocks : Accounting Approach , Single Year (Part B)
13. Video 13 | RAB building blocks : Accounting Approach, Multi Year
14. Video 14 | RAB building blocks : Cash Approach, Single Year (Part A)
15. Video 15 | RAB building blocks : Cash Approach, Multi Year (Part B)
16. Video 16 | RAB building blocks : Proof of cash approach
17. Video 17 | RAB building blocks : Accounting vs Cash Approach
18. Video 18 | Sensitivities and Scenarios (recap)
19. Video 19 | Data Tables (recap)
1. DAY 1 | Presentations
1. DAY 1 | Modeling
1. Introduction to Economic Regulation & Model Basics
1. Day 1 | Poll
1. Day 1 | Zoom Recording
1. DAY 2 | Time-Table
2. Day 2 | Overview
1. Video 20 | Objectives of economic regulation
2. Video 21 | Regulatory Regimes
3. Video 22 | Regulatory Instruments
4. Demo Excel | Example Excel file used in 3-way statement
5. Video 23 | Introduction to 3 Way Statements
6. Video 24 | Building a balance sheet and income statement
7. Video 25 | Retained Earnings
8. Video 26 | Adding working capital to balance sheet
9. Video 27 | Cost of Capital and WACC
10. Video 28 | Weighted average cost of capital (WACC)
11. Video 29 | WACC Introduction
12. Video 30 | WACC extended | Cost of Equity | Part 1
13. Video 31 | WACC extended | Cost of Debt | Part 2
14. Video 32 | WACC extended | Summary
15. Video 33 | Risk versus Returns
16. Video 34 | Part 1 | Country risk premium
17. Video 35 | Part 2 | Country risk premium (credit ratings approach)
18. Video 36 | Role of Parties and Contractual Cashflow
19. Video 37 | Allocation of Risk
1. DAY 2 | Presentations
1. DAY 2 | Model
1. Utility Sustainability, Scenarios & WACC, 3-Way Financial Statements
1. DAY 2 | Zoom Recording
1. DAY 3 | Time-table
2. DAY 3 | Overview
1. Video 39 | Depreciation
2. Video 40 | Regulatory treatment of depreciation
3. Video 41 | Regulatory treatment of investments
4. Video 42 | Investment types (replacement, expansion, quality)
5. Video 43 | Part 1 | Demand projections
6. Video 44 | Demand Projections | Part 2 | Opex - Benchmarking
7. Video 45 | Efficiency factors
8. Video 46 | Regulatory treatment of losses
9. Video 47 | Adding expansion debt to model
1. DAY 3 | Presentations
1. DAY 3 | Model
1. Demand, CAPEX/OPEX & Depreciation
1. DAY 3 | Zoom Recordings
1. DAY 4 | Time-table
2. DAY 4 | Overview
1. Video 48 | Tariff Structure V2
2. Video 49 | Part 1 | Designing the tariff structure
3. Video 50 | Part 2 | Designing the tariff structure
4. Video 51 | Cost Allocation Principles
5. Video 52 | Why do capacity payments exist?
6. Video 53 | Introduction to graphing
1. DAY 4 | Presentations
1. DAY 4 | MODEL START
2. DAY 4 | DAMODARAN
1. Tariff Structure & Cost Allocation (Case Study Integration)
1. DAY 5 | Time-table
2. DAY 5 | Overview
1. Presentation: Summary of Modelling
1. Video 54 | Final Model Overview
1. DAY 5 | Model
1. COURSE FEEDBACK SURVEY
2. LECTURER EVALUATION | Peter Twesigye
3. LECTURER EVALUATION | Martin Pardina
4. LECTURER EVALUATION | Haydn Palliser

About this course

Free
126 lessons
39.5 hours of video content

Introduction

Our Team

Faculty

Pre-Course Basics | 31 March - 4 April 2025

Pre-Course Videos

Pre-Course Reading

Pre-Course Models

Pre-Course Case Study

Pre-Course Quiz

Pre-Course - Class Recordings

DAY 1 | Intro to Economic Regulation & Utility Sustainability

DAY 1 | Videos

DAY 1 | Presentations

DAY 1 Models

DAY 1 | Quiz

DAY 1 | Poll

DAY 1 | Class Recordings

DAY 2 | Utility sustainability, Regulatory Asset Base & Capex, and Depreciation

DAY 2 | Videos

DAY 2 | Presentations

DAY 2 | Models

DAY 2 | Quiz

DAY 2 | Class Recordings

DAY 3 | Demand, Sensitivities, Investments (CAPEX), OPEX and depreciation

DAY 3 | Videos

DAY 3 | Presentations

DAY 3 | Models

DAY 3 | Quiz

DAY 3 | Class Recordings

DAY 4 | Tariff Structure & Modelling Skills

DAY 4 | Videos

DAY 4 | Presentations

DAY 4 | Models

DAY 4 | Quiz

DAY 5 | Case Studies

DAY 5 I Presentations

DAY 5 | OPTIONAL Videos

DAY 5 | Models

DAY 5 | Overall Surveys & Evaluations

About this course