Tariff Rate Strategies and Cost Recovery Requirements - The Institute for Public-Private Partnerships® a Tetra Tech Company


Tariff Rate Strategies and Cost Recovery Requirements

CEUs: 6.0

Course Description

For developing economies, adequate utility services continue to be a key factor in economic growth. To ensure delivery of these services now and in the future, utilities require effective techniques to manage their business operations, including interaction with regulatory authorities.
This course not only discusses the traditional approaches to tariffs but also presents tariffs as a tool of regulation, allowing the participants to acquire skills to work within the regulatory environment, i.e., refining price modeling and monitoring strategies, and implementing consumer protection programs.

This training on tariff-setting and strategies will provide the participants with a clear understanding of the role tariffs play in regulated utilities.

The course addresses the link between the regulatory approach and how tariffs become the tool that allows the authority to implement that regulatory framework. Participants will consider cost recovery requirements, quality of service issues, and tariff rate strategies in various markets and sectors, namely, electricity, oil and gas, and non-energy utilities.

Learning Outcomes

Through successful completion of this course, participants will be able to:

  • Explain how to set a revenue requirement and translate it into a tariff design
  • Identify the role of a cost of service study in translating a revenue requirement into a rate design
  • Describe the role of the regulator in the tariff-setting process, methodologies, and relationships with service providers
  • Describe the role of the service provider in collecting and analyzing data to reduce costs and improve service
  • Compare case study experiences on how to (and how not to) determine and adjust prices and the implications
  • Demonstrate how to decouple tariff policies from social and political objectives
  • Illustrate how to calculate, analyze, and adjust tariff structures

Who Will Benefit

  • Officials from PPP units or investment agencies responsible for infrastructure development, particularly from regulated utilities
  • Bilateral and international development organizations
  • Commissioners, directors, and key staff of regulatory authorities, agencies, and commissions
  • Directors and lead managers of publicly- and privately- regulated utilities

Related Courses