ECA has extensive regulatory experience in the utility and infrastructure sectors. We develop revenue setting methodologies for regulated monopoly businesses and associated regulatory procedures based on best regulatory practice and relevant regulatory objectives. We also provide support to regulators and other market participants (utility businesses, consumer representatives) in advancing positions during a price or revenue control review. In the area of markets, our work includes providing advice and support to governments and regulators on utility market restructuring including conceptual design, impact analysis, drafting rules, undertaking operational assessments, developing network access conditions and advising on optimal strategies for participants.
Greece: methodology for allowed revenue of electricity transmission
The Regulatory Authority for Energy (RAE) appointed ECA to provide support regarding an interim methodology for setting the allowed revenues for electricity transmission, in preparation for the privatisation of the transmission system operator (TSO) in Greece.
UK water company cost of capital analysis
ECA was contracted to advise the Consumer Council for Water on the appropriate cost of capital for the water companies in the 5-year regulatory period of Ofwat’s PR14 price review. ECA’s analysis focused on the weighted average cost of capital (WACC) and the recent financial performance of the companies.
Regulatory modelling for network business, Australia
Jemena Networks needed assistance modelling its regulatory asset base based on new reporting requirements set by the Australian Energy Regulatory. ECA developed a new model that allocated the existing regulatory asset based among new benchmarking asset categories, using estimates of depreciated replacement cost.
Market model, tariffs and institutional capacity support, Kosovo
ECA assisted the Energy Regulatory Office (ERO) in developing the large quantity of secondary legislation, codes and regulations required to implement a new regulatory framework and competitive electricity market.
Institutional capacity building of the Egyptian Water and Wastewater Regulatory Agency
For the newly formed Egyptian Water and Wastewater Regulatory Agency, ECA developed the tariff methodology and specified approaches to routine tariff review handling and implementation. Advice was also given on other economic policy and regulation issues.
Advisory services to Electricity Regulatory Agency of Vietnam
ECA provided advisory services to the Electricity Regulatory Agency of Vietnam (ERAV) on the implementation of power market reforms in accordance with the Government’s roadmap for the sector.
Gas transmission and distribution regulation, Israel
This project helped the Natural Gas Authority to regulate and develop the transmission and distribution of natural gas in Israel.
Sanitation regulation and tariffs, Zambia
ECA, together with Trémolet Consulting, worked with NWASCO to develop a strategy for regulating sanitation services in Zambia.
Regulatory models for water and power, Lesotho
ECA assisted in the electricity regulator broadening its mandate to become the Lesotho Electricity and Water Authority (LEWA). In follow-up projects, we have assisted LEWA in the implementation of economic and financial regulatory models.
Regulating electricity distribution companies, Brazil
ECA carried out a study of rate of return regulation practice in various countries, as part of a larger project on the review of distribution tariffs in Brazil’s electricity sector.
Regulatory framework for electricity, Ethiopia
ECA led this project to develop the regulatory framework for the power sector, covering both economic regulation and technical regulation.
The establishment of autonomous regulator for urban water and sewerage services, Uganda
ECA led the team which reviewed the current position, examined comparable frameworks in other countries, prepared a business plan and financing strategy, and drafted the required legal frameworks for establishment. ECA led a high level regulatory study tour to Zambia and Kenya.