ECA SERVICES / TARIFFS
We advise both regulators and utilities in developing wholesale and retail tariff frameworks that balance social and economic requirements. Besides tariff design, we are also experienced in providing training in tariff principles and building capacity with regulatory bodies. This applies to both electricity and water, where there is invariably heightened concern about affordability.
In the energy sector, ECA has also helped develop market designs and detailed rules for both capacity and energy markets in several markets in Europe and other areas as part of market opening initiatives.
SELECTED PROJECTS INCLUDE >
SELECTED PROJECTS INCLUDE >
ECA supported ERAV in its review of transmission pricing, including an assessment of current arrangements, recommendations on improvements drawing on international best practice and the calculation of new example transmission charges.
ECA has been appointed to appraise the gas transmission tariff methodology in FYR Macedonia, especially the determination and allocation of allowed revenues. The current situation in FYR Macedonia is that the gas transmission system is heavily underutilised meaning that the large capital costs required to construct the network are being recovered from a low volume of gas. This means that per unit tariffs for gas are at a level that might be prohibitive and unsustainable for customers (and potentially inconsistent with levels that would encourage the efficient utilisation of the gas transmission network).
ECA was responsible for the estimation of long-run marginal costs for transmission and distribution, the review of the efficiency of the current tariffs, the development of a revised set of tariff structures and the assessment of improvements to tariff adjustment mechanisms.
ECA was appointed by the Electricity Authority of Cyprus (EAC) to assist with the development of new tariff designs consistent with a recently issued tariff methodology by the regulator. ECA is also providing advice on the new market rules for Cyprus (which is moving to a net pool market model) and bilateral contracting in a competitive market.
ECA developed marginal-cost based tariff structures and recommended staged tariff increases, automatic adjustment mechanisms and lifeline tariffs.
This assignment involved ECA advising on a new tariff policy and structure, undertaking a comprehensive willingness and affordability to pay survey, detailed cost-recovery and tariff modelling and the design of an effective subsidy policy.
A consortium led by ECA was appointed as Special Tariff Adviser (STA) to develop tariffs for the water and sewerage (W&S) companies of Athens and Thessaloniki, EYDAP and EYATH, in the context of their impending privatisations.
ECA was appointed by the Regulatory Authority for Energy (RAE) to develop transmission connnection and use-of-system tariffs for electricity for implementation by the transmission and distribution network operators.