Projects

We collaborated with Econex in producing an expert report for Eskom on the hardship claim by Optimum. In addition to critically reviewing the details provided in the Optimum claim, we developed a range of strategic arguments that Eskom could employ to defend its case. ...

We collaborated with Econex and Eskom to undertake a scenario based study of the price and other implications of pursuing different coal sourcing strategies. The quantitative analysis was primarily based on Eskom's coal supply optimisation model. ...

Our role included assisting with detailed strategy sessions; preparations of the team's participation at the NERSA public hearing; and presenting at the same hearing as the team's economic expert. The licence applications were successful. ...

After lengthy engagement with the regulator regarding methodology we calculated an appropriate tariff path that would meet both the client's needs and the regulator's requirements. This required the calculation of a levelised cost tariff that increases by inflation every year, and the calculation of a Rate-of-Return tariff for the same facility and the demonstration of parity between these two different tariff profiles. We also documented the financial calculations (model) and drafted the technical (and primary) sections of the tariff application document. Following the submission of the application, we remain active on the project to assist Sunrise with the finalisation of ...

Meridian was appointed to conduct an LPG market investigation and prepare an economists report on behalf of Borbet. Our report covered the regulatory and competition economics issues relevant to the inquiry and identified areas of concern to Borbet that it wanted the Commission to investigate as part of the inquiry. ...

We collaborated with Econex and Eskom by leading a project to produce a large study of the coal market in South Africa. The investigation focussed on outlining the key characteristics of the South African coal market (including the export component); on reviewing Eskom's future coal requirements; on identifying and investigating the key challenges that Eskom faces in meeting its future coal supply objectives; and on outlining the key choices, policies and strategies that will be required to meet its objectives. ...

Meridian was appointed to prepare the Sunrise tariff application. However, given that Sunrise required a levelised cost tariff (an inflation indexed tariff) we first had to engage NERSA around the methodology that Sunrise wished to use for the application. After extensive engagements and exchanges of letters on the technicalities of our proposed approach (and demonstrating its NPV equivalence to the NERSA Rate of Return approach) we were able to reach a point where the tariff application could proceed on a levelised cost basis. ...

Grové Steyn was appointed as an expert witness by the complainants. Meridian prepared a number of expert reports, filed as part of the litigation, that analyse the NMBM industrial electricity tariffs and the appropriate method for tariff regulation by NERSA. During the process Meridian cooperated closely with the legal team in the matter. ...

Grové was appointed to assist the Eskom team with assessing the tariff decision and its impact on Eskom, and with preparing a strategy for responding thereto. ...

We constructed a comprehensive paramaterised multi-period financial model of the client's profitability metrics under arbitrary assumptions around volume and macro-economic scenarios. We generated multiple stochastic macro-economic scenarios incorporating the client's forecasts. We developed a visual spreadsheet tool to illustrate the likely range of consequences under the pricing options envisaged by the client. This process allowed the client to refine their offering and confirm that their business strategy gave them desirable levels of risk/reward from the unhedged exposures. ...