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Setting the Weighted Average Cost of Capital (WACC) Training lead
Setting the Weighted Average Cost of Capital (WACC) 
  • Course Outline

  • Agenda

  • Instructors

  • Methodology

  • Testimonials

    The ERRA online training on setting the Weighted Average Cost of Capital (WACC) will review one of the most critical regulatory determinations in the tariff setting process. The training will couple theoretical 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, with practical exercises and case-study examples from previous regulatory determinations.

    What you will learn:

    • Various forms of WACC and the manner in which these affect allowed revenues;
    • Regulatory approaches to estimating the cost of debt, factoring in country-specific risks;
    • Optimal gearing levels balancing financing efficiency and solvency;
    • Estimating return on equity, with emphasis on the CAPM model.

    Course Agenda

    1INTRODUCTION TO THE WACC AND THE COST OF DEBT
    • Forms of WACC impacts on allowed revenues
    • Cost of debt, Proxy values, Setting the Debt Risk Premium
    2EFFICIENT GEARING LEVELS AND COST OF EQUITY
    • Efficient gearing levels: theory and regulatory practice
    • Estimating the cost of equity
    3THE CAPITAL ASSET PRICING MODEL
    • Capital Asset Pricing Model I. - II.
    4REAL VS. NOMINAL WACC AND RAB INDEXATION
    • Excel Exercise: Calculating the WACC

    For detailed agenda please contact the ERRA Secretariat.

    Course Faculty Team

    Setting the Weighted Average Cost of Capital (WACC) 

    Ardian Berisha

    Course Director


    Regulatory Specialist
    ERRA
    Setting the Weighted Average Cost of Capital (WACC) 

    Konstantin Petrov

    Course Instructor


    Managing Consultant, DNV Energy Systems, Germany
    Setting the Weighted Average Cost of Capital (WACC) 

    Waisum Steinborg-Cheng

    Course Instructor


    Senior Consultant, DNV Energy Systems, Germany
    Setting the Weighted Average Cost of Capital (WACC) 

    Daniel Anton

    Course Instructor


    Consultant, DNV Energy Systems, Germany

    Methodology

    Setting the Weighted Average Cost of Capital (WACC) 
    Instructor-led real-time recorded presentations
    Setting the Weighted Average Cost of Capital (WACC) 
    Online Tutoring
    Setting the Weighted Average Cost of Capital (WACC) 
    Excel modeling

    The training is based on a self-paced collaborative e-learning platform that features a combination of real-time interactive presentations by the instructors, Excel modeling exercises, online tutoring at pre-announced times, reading material related to the course modules.


    The course runs for 2 weeks with the following weekly sequence:

    • Day 1

      Real-time presentations on the presented materials. Presentations will be followed by Q&A sessions. Presentations will be recorded and made available to those who could not join the real-time presentations. Distribution of weekly assignments.

    • Day 2

      Real-time presentations on the presented materials. Presentations will be followed by Q&A sessions. Presentations will be recorded and made available to those who could not join the real-time presentations. Distribution of weekly assignments.

    • Day 3

      Self-paced work.
    • Day 4

      Online tutoring for the duration of 1 hour.
    • Completion

      At the end of the course a Certificate of Attendance will be granted to participants. No CER credits are awarded for completing this course.

    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.
    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
    88%

    overall rating of the course

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