Building capacity in Africa’s power sector

Professionals in the power sector need a unique skill set. Gain practical know-how with this specialised short course.

Financial modelling for tariff setting is a core skillset for professionals working in the continent’s power sector regulatory, municipal and utility space. The Financial Modelling for Utility Tariff Setting course at the UCT GSB gives managers, senior professionals and advisors in utilities, regulatory authorities and government the skills needed to set tariffs in a regulated context.

This specialised course is offered by the Power Futures Lab, a leading centre of excellence at the UCT GSB. 

QUICK FACTS
COURSE DATES

7 - 18 June 2021

APPLICATIONS CLOSE

7 May 2021

TUITION FEE

TBC

THE BUILDING BLOCKS OF A TARIFF-SETTING FINANCIAL MODEL

The course provides a basic understanding of the building blocks of a tariff-setting financial model. It teaches delegates to build a financial model – including all constituent parts such as regulatory asset base, weighted average cost of capital, and energy and input costs – that can run sensitivity analyses and provide various tariff paths.

The course builds on the foundational knowledge developed in the Managing Power Sector Reform and Regulation in Africa short course at the UCT GSB, but it can be taken as a stand-alone course. Delegates should bring their own laptops and have computer literacy in Excel.


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You will benefit highly from this course if you are a: 

  • Manager or senior professional in a utility, a regulatory authority or government 
  • Utility Board member 
  • Professional in the power sector 
  • Manager or senior professional in a utility, a regulatory authority or government 



    The course will see delegates build their own financial model for “utility tariff setting”, with the constituent parts (regulatory asset base, weighted average cost of capital, energy/input costs etc.) unpacked and developed in detail throughout the week. At the end of the week they should have built a model that can run sensitivity analyses and provide various tariff paths. 

     


    Topics covered include:

    • An optional module on basic financial concepts and basic Excel financial formulas 
    • Tariff objectives 
    • Cash flow and accounting equivalence: Building a simple model from scratch 
    • Valuation techniques 
    • Capital costs: Asset base, capex, depreciations 
    • Endogenous and exogenous capex 
    • Costs of capital: WACC, costs of debt, costs of equity 
    • Opex: efficiency levels, benchmarking, demand projections 
    • Fixed and variable costs 
    • Tariff level and tariff structure, efficiency and affordability 


    15%
    for 3-6 applicants (discount applied from third applicant) 
    10% for 7+ applicants (discount applied to all applicants) 
    25% for non-profit organisations 
    15% for alumni of UCT GSB academic and Executive Education courses 

    MEET THE FACULTY
    WIKUS KRUGER
    Course Convenor

    Wikus Kruger is a Junior Research Fellow and PhD candidate in Managing Infrastructure Investment Reform and Regulation In Africa (MIRA), based at the Graduate School of Business (GSB) of the University of Cape Town. His research focuses on independent power producer (IPP) and emerging power investments in Africa, especially focused on renewable energy and energy access. Wikus previously worked as a Research Officer in the Energy, Poverty and Development thematic group, at the Energy Research Centre, based at the University of Cape Town. He was also a senior consultant with Restio Energy for seven years, working mainly on sustainable energy in Southern and Eastern Africa. He furthermore worked with the EU Energy Initiative Partnership Dialogue Facility (EUEI PDF) in Brussels during 2012. He has experience in market and business development of clean energy technologies, technical assistance to national governments, national energy sector policy analysis and development, energy sector reform, and technology cooperation and demonstration.

    DR MARTIN RODRIGUEZ-PARDINA

    Martin Rodriguez Pardina is currently Chief Economist of Macro Consulting S.A. a consulting firm specialized in economic regulation of utilities. He has experience working as a consultant in regulation and restructuring of public utilities in Latin America, Middle East, Africa, Russia and India. He has a PhD in Economics from the University of Cambridge and a degree in economics from the University of Cordoba in Argentina. He has published several articles on utility regulation in international journals and is the co-author of two books published by the World Bank one on resetting price caps and other on regulatory accounting. Until 2001 he held an academic position as Executive Director of the Economic Regulation Research Center at the Universidad Argentina de la Empresa.

    CUSTOMISE THIS COURSE FOR YOUR TEAM

    The Financial Modelling for Tariff Setting course can be customised to suit your organisation’s learning and development needs and can be delivered anywhere in the world, wherever it is convenient.

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