Liberalisation of markets in which the public sector has been the traditional operator and supplier requires key actions in the areas of market structuring, competition and regulation. These include (re)design of markets, restructuring, unbundling of business activities, setting up and development of competition authorities and regulatory institutions, as well as development of rules and tools for market operation and regulation. Successful transformation requires formulation of effective policies to achieve economic and sectoral goals, as well as comprehensive implementation plans. We have experience in supporting governments, policy makers, regulatory authorities and market actors in formulation and implementation of market design, restructuring and regulatory policies.
Restructuring of the gas market in Greece
We have worked on several assignments for a Greek gas company, assisting with restructuring of the gas market in Greece, privatisation of gas supply networks and development of gas distribution companies through PPP tenders aimed at awarding contracts to private investors.
Setting regulatory electricity tariffs
For the major Greek electricity company, we provided services for setting new regulated electricity tariffs and preparing a transition plan for their adoption. The tariffs were designed on the basis of legal and regulatory requirements, such as the need to ensure that prices reflect costs and that cross-subsidies between customers or customer categories are removed.
Support to the gas regulatory authority in Romania
The European Union assigned us with the task of supporting operations of the Romanian gas regulatory agency, ANRGN. This involved reviewing the organisational structure, preparing a medium-term development plan, proposing a tariff methodology and assisting in its implementation, reviewing primary legislation and screening and developing a strategy for secondary legislation. We also drafted authorisations and licences, developed a system for monitoring compliance, reviewed rules for eligibility and carried out training and twinning in conjunction with corresponding regulatory organisations.
Capacity building support
On behalf of the European Union, we supported the Egyptian Electric Utility and Consumer Protection Agency (EEUCPRA) in its efforts to reform the electricity market and exercise its mandated functions, taking into account international best practices for regulation of the electricity sector.
Development of electricity tariffs methodologies
We assisted the Montenegrin energy regulator in developing electricity tariff methodologies and conducting tariff reviews.
Long-run marginal cost pricing of generation, transmission and distribution in the Greek electricity sector
On behalf of the Greek energy regulator, we developed Long Run Marginal Cost pricing for the Greek electricity sector. This involved gaining an overview of pricing practices and European experience in terms of long-run marginal costs and tariffs, data gathering and processing and outlining a methodology for preparation of load profiles. We also provided software comprised of optimisation tools for the generation, transmission and distribution systems and an allocation tool for splitting marginal costs between consumer categories. In addition, we estimated long-run marginal costs for generation, transmission and distribution and drew up a paper on key issues from the demand-side. We gave an overview of demand response and produced a study on the scope for using telemetering, including a review of relevant EU experience, examination of tariffs on regulated power utilities and proposals for tariffs which reflect long-run marginal costs, as well as for gradual modification of the current regime. The project also included assessment of training needs, workshops and seminars.
