Course Overview:
“The course aims to provide an overview of basic introduction to rate setting by exploring explore specific approaches to rate setting – and the analysis of each – in depth; explores rate and subsidy design and applicable strategies, and where applicable illustrate on application of the practices and strategies”
Course Outcomes
The expected course outcomes are:
- Skills in calculating rates and analyzing utility financial information is enhanced
- understanding the principles of smart tariff design
- understanding the cost basis for allocation and tariff design
- Understanding tariff structures
- Feasibility of Time Of Use pricing
Topics
The course will cover the following topics:
- The process and functions of rate-setting
- Approaches to Rate Settings
- Cash-Need Approach
- Rate of Return Approach & Analysis
- Price Cap Approach & Analysis
- Revenue Cap Approach and Analysis
- Rate and Subsidy Design Strategies
- Prepare for and perform price reviews