Cost of Service and Tariffs
Determination of the cost of service is essential to have a clear understanding of the actual cost of delivering electricity to various customer categories and therefore ensure businesses make the right development decisions. Economic efficiency in tariff design requires tariffs to be linked to the economic cost of meeting consumers' demand. It includes identifying the efficient, rather than the actual, costs of electricity supply.
We support regulators in developing appropriate tariff frameworks and transitioning to cost-reflective tariffs. We also support utilities in tariff calculation and regulatory submissions.
Key services in this area:
- Design of tariff and subsidy regimes.
- Economic tariff setting.
- Generation and system expansion and long-term planning.
- Demand forecasting, business projections and financial analysis.
- Regulatory Submissions and Negotiations.
- Regulatory Financial Models.
- Long-run marginal cost determination.
- Opening Losses Calculation and loss reduction strategies.
- Billing system and settlement.
- Vesting Contract and Balancing Compensation Administration.
- Delivering social equity in tariff models and establishment of life-line tariff.
- Communicating tariff change to all stakeholders.