Financial Modeling for Utility Tariff Setting
Learn the fundamentals of a tariff-setting financial model
BUILDING CAPACITY IN AFRICA’S POWER SECTOR
Gain practical skills in power sector financial modelling
The Financial Modelling for Utility Tariff Setting course, offered by the Power Futures Lab 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.
*15 April 2024-19 April 2024: Online Self-paced pre-work
*22 April 2024 – 26 April 2024 face-to-face in Cape Town at UCT GSB Breakwater Campus
*Payment Deadline: 09 April 2024
LEARN THE FUNDAMENTALS OF A TARIFF-SETTING FINANCIAL MODEL
The Financial Modelling course provides a basic understanding of the building blocks of a tariff-setting financial model. It teaches delegates to build a financial model 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.
Meet the Course Convenor
PETER TWESIGYE
Dr. Peter Twesigye leads research in Power Market Reforms and Regulation at the Power Futures Lab. He is an Infrastructure Economist with 14 years’ work experience in Electricity Distribution & previously in Urban Utility Water and Sanitation Management. Peter’s research and teaching focuses on Structural, Governance and Regulatory Incentives for Improved Utility Performance and more recently renewable energy transitions. Peter has expertise and interest in; Power Market Reforms and Regulation, Energy Transitions, Governance, Energy Policy, Energy Concession Design and Analysis, Tariff Setting & Policy Reviews, Managing Utility Performance Improvements, Performance Contract Formulation and Design, Investment Planning and Appraisal, and Strategic Planning. He is a member of the National Association of Regulatory Utility Commissioners (NARUC – USA) and the South African National Energy Association (SANEA).
He is also a visiting lecturer and member of the Academy of Regulatory Professionals Advisory Board – (University of Florida’s PURC-USA). Until recently, Peter was the Manager Regulatory Affairs at Umeme Ltd (a private electricity distribution concession) and previously worked as a Senior Economist with National Water and Sewerage Corporation (NWSC) in Uganda. He has also advised government ministries, undertaken several assignments for donor agencies and worked as a Consultant for Oxford Policy Management, Actis LLP, AfDB, Adam Smith International, USAID and 2ML Consulting Ltd and various consulting entities in promoting Performance Improvement Plans (PIPs) and turnaround initiatives in several Utilities in West, East and Southern Africa.
Meet Our Faculty
COURSE DISCOUNTS AVAILABLE
15% for 3 - 6 applicants (bulk discount applied from third applicant)
10% for 7+ applicants (bulk discount applied to all applicants)
10% for alumni of UCT GSB academic and Executive Education courses
FAQ
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
The UCT Graduate School of Business takes pride in building future leaders and guiding the leaders of today toward sustainable impact in African business and society.
Our degree programmes and short courses deliver learning experiences that are personally transformative because better people make better leaders.
Our programmes are mostly offered at our vibrant Cape Town Breakwater Campus, at the heart of the city's most popular tourist attraction, the V&A Waterfront.
The campus is equipped with modern lecture theatres, a library and syndicate rooms for group study, as well as restaurants and the Protea Hotel Breakwater Lodge that offers special rates for students.
Find out more: https://www.gsb.uct.ac.za/student-experience
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