The course provides a thorough introduction to the methodology of price regulation and tariff setting, the underlying economic theories, and also to the practical issues and solutions. The main topics are:
- Financial analysis, one of the basic inputs of tariff development and control; the method of determining the revenue requirement of regulated energy companies.
- The basic normative approaches and methods of tariff design.
- Classification of observable consumption patterns and corresponding consumer tariffs; the rationale behind the regulation of prices through which access to transmission grids can be obtained by the participants of the competitive market.
- Comparison of the practical policies of rate-of-return and incentive regulation under different industry conditions; objectives involved in the process of designing a practical regulatory policy.
- Social impacts of energy policy decisions.
