Power sector experience

Projects that our advisers have played a leading role in

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  • Eskom Holdings – Regulatory adviser to South Africa’s vertically integrated power utility since 2004, providing advice on regulatory design, multi-year tariff applications, allowed cost of capital, regulatory asset value, funding models, regulatory reporting and information requirements, transmission access arrangements; and a range of related matters.
  • Royal Thai Government Ministry of Energy – providing recommendations for a revised regulatory approach to be applied within the context of ASEAN Economic Coordination, with key findings also utilized by the Ministry in formulating Thailand’s National Energy Development Plan. The work carried out by slEconomics provided a blueprint of unbundled tariff setting frameworks to be applied across Thailand’s electricity generation; transmission; distribution, and retail supply sectors.
  • ACCC (AER) – advice to the Australian regulator on transmission planning and pricing principles in regard to the conversion of Murrylink transmission link from a market based to a regulated interconnector.
  • Toshiba Power International – development of a Financial Value Model for power generation technologies to be used by Toshiba in assessing value added across a range of technology enhancements and tailored to the power generator’s operational characteristics and market environment.
  • AES – economic adviser on wholesale price formation in Australia’s competitive electricity market in the bid for a hydro-electric facility – constructing dispatch premiums and revenue projections for this peaking plant within the existing wholesale market structure to be used as input to discounted cash flow valuation models.
  • Edison Mission Energy – financial advisory and competitor analysis in the bid for a 60% holding of Singapore’s Tuas Power project – building financial models of Singapore’s power portfolios and projections of dispatch profiles in the wholesale power market, assessing revenue required to support target return on equity and related financial metrics.
  • Queensland Treasury Corporation – financial analysis and valuation of all Government Owned Corporations within the Queensland power sector, to assess market and regulatory risk across the State’s generation, transmission, distribution and retail portfolios.
  • Eskom Holdings – lead external commercial adviser on the utility’s Pilot Cogeneration Power Purchase Programme, including design of pricing mechanisms, off-take arrangements, risk allocations, penalty mechanisms applying to the power purchase agreement, and drafting detailed practice notes on calculation of payments to be applied under the terms of the PPA.
  • Mauritius Central Electricity Board – design of a pricing model and financial performance targets for state-owned power company, segmenting across generation, transmission and retail supply businesses in anticipation of corporatisation and potential equity raising.
  • National Energy Policy Office (Thailand) – a lead adviser in the (planned) restructure of the Thai electricity supply industry during the late 1990’s – advising on optimal market and industry structure, and determination of the financial performance and value of all state-owned generation assets in Thailand under a competitive market;
  • Integral Energy – lead economic adviser on a bid for a major electricity distribution business – assessing regulated revenue and profit streams from the network and retail business; and providing advice on business re-configuration and divestiture options for network and retail gas business units including comprehensive financial analysis and commercial development strategies.
  • Upstream gas and oil company – modelling the Australian gas market to be used as part of the client’s strategic planning process. In undertaking this project a suite of computer based modules were designed to evaluate the portfolio effects of inter-related factors such as supply / demand balances, E&P decisions, transport constraints, technology options, pricing, and competitor
  • Australian gas network companies – advice on asset valuation methodologies, cost allocations, and cost based pricing mechanisms as input to setting network charges.