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INFRASTRUCTURE REGULATION SERIES
How You Will
Benefit:
- Enhance your skills in calculating rates and analyzing
utility financial information
- Learn advanced techniques in cost of service, asset
usefulness and demand profiling
- Learn the key principles of subsidy design and compare
different methods to reduce the financial burden of implementing subsidies
- Learn transitional strategies for cost-recovery
- Participate in online group discussions with
participants and experts from around the globe
- Develop an Action Plan to plan for a tariff
structuring/subsidy design
- Network and build professional relationships with your
fellow participants and leading regulatory specialists, commissioners and
financiers
- Take this valuable and pioneering "Introductory
Regulation" course right from your home or business, on your schedule and at
your pace
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| Who Should Attend |
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Commissioners, Directors
and Key Staff of Regulatory Authorities, Agencies, and Commissions
Directors and Key
Managers of Public and Private Regulated Utilities
Ministry of Finance,
Energy, Water and Telecommunications
Project Officers and
Staff of Bilateral and International Organizations
- Knowledge of spreadsheet software
- Computer/typing skills and with reliable
Internet connectivity (45K modem or higher)
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Course
Learning Objectives
Setting rates is
probably the most important function of a regulator and is a key factor in the
success or failure in the provision of utility services. As regulatory agencies
around the world mature and increase their capacity, the rate setting process
can become more sophisticated to meet the changing utility regulatory
environments. Utility managers, regulators and consumers alike must analyze an
increasing amount of information. All stakeholders need advanced tools
to ensure that rates are set appropriately and fairly for both the utilities'
viability and the customers' affordability. Further, governments in most
countries determine that, on policy grounds, the 'fair price' for the poorest
consumers will be set at a level that requires a subsidy from other sources.
Designing and implementing subsidy programs that effectively target the poorest
consumers are therefore a key component of the rate setting process.
IP3 has designed an intensive training
course to deal with these important issues: Advanced Rate Development and
Subsidy Design Strategies for Utilities and Regulatory Authorities. In this
course, participants will explore the latest strategies on rate setting and
subsidy design as well as discuss practical examples illustrating how rates are
calculated in different sectors and countries. The course contains six modules,
each consisting of content sessions; case study review and analysis; module
assignments and discussion groups, and action planning sessions. The course is
self-paced (although each module is "timed" to be completed in a one-week
period) - all you need is an Internet connection. Course work is approximately
5 - 6 hours per module/per week. IP3 participants in previous online courses
have found they benefit significantly from the interactive sharing of ideas and
insights.
introductory
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| Course Content |
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Module I:
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The Process of Rate Setting
- Goals and objectives of pricing strategies
- Understanding marginal/incremental costs
- Fixed and variable costs analysis
- Determining revenue requirements
- Rate design options and techniques for water,
electricity, telecommunications, and transport
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| Module
II: |
The Cash-Needs Approach
- Determining revenue requirements of the utility
- Comparisons with investor-owned utilities
- Allocation of costs
- Distribution of costs to customer classes:
commercial, residential, and government
- Rate design and their impacts on customer
classes
- Exercise on rate development
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| Module
III: |
Rate of Return Approach &
Analysis
- Determination of revenue requirements: rate base;
income and expenses; cost of capital
- Use of and adjustments to financial statements
- Strengths and weaknesses to the ROR
method
- Allocation and distribution of costs
- Rate design and the impact on
rate-of-return
- Exercise on rate development
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IV: |
Price Cap Approach &
Analysis
- Defining the price cap structure
- Rate rebalancing strategies
- Defining the baskets
- Determining the X factor
- Setting the productivity factor
- Other potential formula factors: Q, Z, Y
- Exercise on rate development
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| Module
V: |
Revenue Cap Approach and
Analysis
- Determining the revenue cap
- Differences between price cap and revenue
cap
- Differences between ROR and revenue cap
- Incentives and disincentives in revenue
cap
- Rate design
- Exercise on rate development
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VI: |
Rate and Subsidy Design
Strategies
- Are subsidies justified?
- Identifying existing subsidies and identifying
targets for future subsidies
- Willingness and ability to pay
- Economically efficient mechanisms to structure
subsidies
- Developing subsidy reduction strategies
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| All
Modules: |
Step by Step Action Planning in
All Six Modules
Prior to completing each module, IP3 requires
participants to complete an Action Plan detailing how they will apply
their new knowledge and skills on-the-job. Our expert faculty members guide
participants in developing their action plans throughout the course, and in
each module participants will present their action plan to the group for peer
review and comments. |
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CEU Certification
Eligibility
Certified
Regulation Specialist™
Certified
Utility Management Specialist™ |
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