Regulation and Tariff Studies

Network industries constitute natural monopolies. In the absence of a competitive market, prices of these companies should be regulated periodically by an external agent or regulator. These tariffs should be affordable and allow sustainability of utilities to operate efficiently and meet quality standards.

Tariff revision is a complex process and requires the development and implementation of a solid regulatory framework which permits to establish the costs associated with efficient practices as objectively as possible.

Siglasul advises utilities in this complex process in various activities, including:

• Support for normative discussions with the regulator;
• Support the planning of the process;
• Analysis and evaluation of information;
• Calculation of efficient costs via analytical models and benchmarking techniques;
• Modeling variables such as: market forecasts, regulatory losses, capital costs, investments, X factor, tariffs structures;
• Scenarios simulation;
• Diagnosis and contestation of successive proposals by the regulator;
• Assistance in discussions and presentations to the regulator;
• Assisting in the definition and discussion of quality goals;
• Monitoring assets valuation;
• Design of measurement campaigns;
• Calculation of tariff structure and application rates

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