Tariff calculation and regulatory approval for gas pipeline infrastructure II
Our client owns and operates a gas pipeline with capacity in excess of 100MGJ/annum. A requirement arose to increase pipeline capacity by investment in a loop line – a parallel line to the main pipeline. The client required an appropriate tariff to be calculated and to understand the business impact of the additional capacity under various scenarios.
We built a complex levelised cost model that could calculate tariffs for multiple infrastructure items delivering multiple capacity increases over arbitrary timeframes. We used this model to assist the client with their tariff application strategy and to calculate the final tariff application. We prepared all regulatory submission documents for the client’s final review.
Expertise: Advanced Financial Modelling, Build Customer-facing spreadsheet tools, Cost of Capital Assessment, Preparing Regulatory Tariff Applications, Pricing Mechanism Development, Project Valuation, Regulatory Engagement, Scenario Assessments, Tariff Application Strategy, Tariff Design