Financial Modelling and Tariff Setting for Utility Sector
06-10 May 2024
Sandton
Johannesburg South Africa
Cost per Delegate
R19,999.00
Course Overview:
This comprehensive course delves into the intricate financial landscape of the utility sector, offering participants a deep understanding of financial modeling and tariff setting essential for effective management and regulation within the industry. Through a blend of theoretical concepts, practical applications, case studies, and hands-on exercises, participants will gain the necessary expertise to navigate the complex financial dynamics unique to utility projects.
Objectives:
• To equip participants with the knowledge and skills to develop robust financial models for utility projects.
• To provide an understanding of the principles and methodologies involved in tariff setting for utilities.
• To enable participants to analyze financial risks and make informed decisions in utility finance.
• To familiarize participants with regulatory requirements and compliance standards in the utility sector.
Outcome
• Participants will be proficient in building comprehensive financial models tailored to utility projects, incorporating revenue streams, operating expenses, and capital investments.
• Participants will gain insights into tariff setting strategies and techniques, enabling them to design pricing structures that balance financial sustainability with consumer affordability.
• Participants will be equipped to assess and manage financial risks associated with utility projects, enhancing the overall financial performance and resilience of their organizations.
• Participants will have a thorough understanding of regulatory compliance requirements and reporting standards, ensuring adherence to regulatory guidelines and fostering transparency and accountability in utility operations.
Who should Attend:
• Finance professionals working in the utility sector.
• Regulatory specialists involved in tariff setting and compliance.
• Project managers and analysts responsible for financial planning and modeling.
• Consultants and advisors working with utility companies.
• Government officials involved in utility regulation and policy-making.
Course Outline:
Introduction to Utility Sector:
o Overview of utility sector: electricity, water, gas, etc.
o Regulatory framework governing the utility sector.
o Importance of financial modeling and tariff setting in the utility sector.
Financial Modeling Basics:
o Understanding financial statements: income statement, balance sheet, cash flow statement.
o Principles of financial modeling: assumptions, projections, sensitivity analysis.
o Excel techniques for financial modeling: formulas, functions, data manipulation.
Tariff Setting Principles:
o Principles of tariff determination in regulated industries.
o Cost of service analysis: fixed costs, variable costs, capital costs.
o Rate of return regulation: understanding return on investment.
Financial Modeling for Utility Sector:
o Building financial models for utility projects.
o Incorporating revenue, expenses, and investment costs.
o Sensitivity analysis for different scenarios: volume changes, price changes, regulatory changes.
Tariff Setting Strategies:
o Pricing strategies for utilities: cost-plus pricing, rate of return pricing, incentive-based pricing.
o Regulatory considerations in tariff setting: compliance, transparency, stakeholder engagement.
o Balancing financial sustainability with affordability for consumers.
Case Studies and Practical Exercises:
o Analyzing real-world utility projects.
o Developing financial models based on case studies.
o Simulating tariff setting scenarios and evaluating their impact.
Regulatory Compliance and Reporting:
o Understanding regulatory requirements for financial reporting.
o Compliance with accounting standards and regulatory guidelines.
o Preparation of regulatory filings and reports.
Risk Management in Utility Finance:
o Identifying and mitigating financial risks in utility projects.
o Financial risk assessment techniques: scenario analysis, stress testing.
o Insurance and hedging strategies for managing financial risks.
End of the Workshop
For Training arrangements call us on the detail below
TANZANIA: +255 749 50 26 78
SOUTH AFRICA: +27 694 31 79 73
KENYA: +255 749 50 26 78
DUBAI: +27 694 31 79 73
