Online Training: Natural Gas Tariff Setting: A Practical Guide
The course will provide participants with an overview of the fundamental policy objectives through price intervention and the policy measures available to achieve these objectives. It does so through an instructor-led collaborative e-learning platform that features a combination of real-time interactive presentations, Excel modelling exercises, online tutoring at pre-announced times, reading material related to the course modules and weekly exercises coupled with homework assignments. The course will last a total of 4 weeks.
Invitation by the Course Directors
What you will learn in 4 weeks:
- best of classical network industry regulation applied for the gas markets
- the main components of the allowed revenues under the building block approach
- different capacity allocation mechanisms, capacity products and their pricing
- the principles and practical use of tariff setting methodologies for gas transmission infrastructure
- a bucket of lessons learnt by others on various regulatory tools, so you do not have to learn by your own mistakes
You will return back to work with:
- ability to calculate gas network tariffs and end user price if applicable in your country
- knowlegde about the capacity allocation methods, principles and how to choose between them
- ability to allocate cost to the network points
- ability to and calculate the reserve price and do the adjustments
- the ability to design regulatory monitoring and benchmarking of the regulated utilities
|Economics of Price
and Tariff Regulation
|Building Up the Revenue Requirement||Tariff Structure
|End-User Price Regulation & Monitoring|
- September 01 (Tuesday): Economics of Price Regulation: The first day of the tariff training will set the stage for the discussions to follow by providing a high-level overview of the regulatory roles in price regulation and discussing fundamental economic principles behind regulation.
- September 02 (Wednesday): Gas market value chain: In Day 2 we will cover wholesale gas markets, how these markets were traditionally organized and then reformed throughout the value chain. We look into how the two mayor components: gas commodity price and infrastructure tariffs can be measured and what indicators can be used to asses them.
- September 07 (Monday): Building-up the allowed revenues: The discussions of the tariff training will then look into transmission and distribution network regulation, the main components of the allowed revenues under the building block approach.
- September 08 (Tuesday): Integration of capital expenditures in RAB: Day 2 will look at tools regulators employ in reviewing the reasonableness of capital expenditure plans and explore issues related to asset valuation.
- September 14 (Monday): Tariff systems and capacity allocation: Day 1 will focus on the different tariffs system, tariff setting principles and models, and their development into network codes. Capacity allocation dimensions such as products and allocation methods will also be covered.
- September 15 (Tuesday): Reference price methodologies and tariff calculation: On Day 2 we will present the concept of cost allocation to network points through reference price methodology. After that calculation of reserve prices will be carried out in practice.
- September 21 (Monday): End user price regulation: Day 1 will look at the principles of end user price setting, challanges and decision points. Differences between consumer groups will also be analysed.
- September 22 (Tuesday): Monitoring, data collection, benchmarking: Day 2 will cover monitoring issues: data requirements and collection and benchmarking. Practical excel exercise will also be part of this week's program.
|Proposed weekly engagement: 4-6 hours|
|Instructor-led real-time recorded presentations||Online Tutoring||Weekly Assignments||Final Test|
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 and weekly exercises coupled with homework assignments.
The course will run for 4 weeks with the following weekly sequence:
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.
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.
Online tutoring for the duration of 2 hours.
Submission of weekly assignment.
The course will conclude with a final multiple choice test at the end of Week 4.
10 CER credits will be awarded to those participants who have submitted all 4 weekly assignments and have successfully passed the final test. For more information on the ERRA Certified Energy Regulator Programme please refer to: https://erranet.org/trainings/cer/