Course Outline
The ERRA training course on Setting the Weighted Average Cost of Capital (WACC) will review one of the most important regulatory determinations in the tariff-setting process. Regulators use the WACC to estimate the efficient cost of capital which provides debt and equity of the regulated utility a return equivalent to the risk they assume by investing in the infrastructure. In regulated networks, the WACC contributes to the allowed return of the regulated utilities, one of the largest revenue blocks and therefore the largest contributor to the costs. In the current context where we have to ramp up investments to accommodate the energy transition, it is of vital importance to set a WACC which is sufficient to attract capital yet is efficient and affordable.
The training will feature theoretical and practical discussions determining the cost of debt and cost of equity of regulated licensees, and the manner in which these are optimally weighted to ensure an efficient and sustainable financing structure. We will cover the various forms of WACC (pre-tax, post-tax, vanilla, real or nominal) and address the advantages and setbacks they present. These discussions will be coupled with excel exercises and case-study examples from regulatory precedents to add to the practical learning experience.
For detailed course agenda please contact the ERRA Secretariat.
Meet the Course Director
Ardian
Berisha
Course Director
Managing Partner, Optima Energy Consulting
Ardian Berisha is a regulatory reform specialist and utility tariff expert with more than 18 years of experience in energy and water sector reform and regulation. Ardian supports regulators improve the stability and predictability of their legal and regulatory frameworks for enhanced infrastructure investments through bankable projects and private sector participation.
Ardian has worked with donor organizations, IFIs and private clients in more than 60 energy projects in Europe, Middle East, Southern Africa and Eurasia. Ardian spends part of his time advising the Energy Regulators Regional Association and their member regulators to support strengthening and improving regulatory practice among a geographically diverse member base. He has extensive experience in tariff-setting, as a policy developer, implementer and modeler of tariffs. His work experience includes Eswatini, Moldova, Mozambique, Zambia, Georgia, Oman, Saudi Arabia, Kosovo, Hungary, Cyprus, Albania, North Macedonia, Italy, Sri Lanka, Uzbekistan, Greece, Ukraine, Thailand, Mongolia, Nigeria and the Philippines.
Ardian holds a Bachelor of Science degree in Economics with Mathematical Emphasis from University of Wisconsin – Madison (US) and a Master of Science degree in Economics for Business Analysis (Applied Econometrics) from Staffordshire University (UK).
Pre-registration
As the training course has a limited number of seats, participants are encouraged to register early. A pre-booking phase is currently open to allow interested participants to reserve their place in the two-day training course.
All pre-bookings will be reviewed, and participation will be confirmed after 20 April, subject to reaching the minimum number of participants required to hold the training and in line with the training’s select composition. Pre-registered participants will receive a confirmation message with further details.
We invite you to register your interest at this stage to ensure your place in this ERRA training course.
Category
- ERRA Full Members
- ERRA Associate Members
- Non-ERRA Members
Early-Bird Rates
- 1294 EUR
- 1510 EUR
- 1726 EUR
- All rates above are gross amounts and include 27% VAT.
Regular Rates
- 1523 EUR
- 1777 EUR
- 2031 EUR
- All rates above are gross amounts and include 27% VAT.
Student Testimonials
I thoroughly enjoyed the course and the course content. The instructors are qualified subject matter experts who apply a great deal of detail in communicating difficult concepts and so make learning a lot easier. Participant of the 2021 training course
This course was very useful and effective for me. I will use the knowledge gained in my work. Tamika Chevallier, Regulated Industries Commission, Trinidad and Tobago
overall rating of previous course
Travelling to Hungary
Visa
Please verify the visa requirements of Hungary by contacting the Hungarian Embassy in your country. The list of diplomatic missions is available here: https://konzinfo.mfa.gov.hu/en/embassies#hungarian-embassies-abroad. The list of countries whose citizens do not require visas to enter Hungary can be found at https://konzuliszolgalat.kormany.hu/visa-waiver-agreements.
List of third countries, where a Schengen state issues visas on behalf of Hungary is available on this page: https://konzinfo.mfa.gov.hu/en/list-third-countries-where-schengen-state-issues-visas-behalf-hungary
In case you need an entry visa, please immediately contact the ERRA Secretariat! To prepare a visa invitation letter for you, please send us your passport copy and indicate the Embassy where you are applying for the visa.