Projects

We provided analytical, and strategic support in a number of Gas Supply Agreement negotiations between our client (a piped-gas trader) and their customers. We assisted by calculating the possible profit impact of offering customised escalation adjustment mechanisms under uncertain future scenarios, and by quantifying the sensitivity of a customer's pricing to the pattern-of-use elements of the pricing mechanism under their control. We created innovative mechanisms to facilitate differential pricing for appropriate customers whilst complying with the non-discriminatory requirements of the regulatory environment. ...

After a thorough analysis of the client's business strategy, we constructed both a levelised cost tariff model and a rate of return tariff model. Based on the client's business requirements we advised the implementation of a levelised cost tariff indexed to inflation. We created a complex levelised cost model to calculate the appropriate tariff to be charged considering the financial implications of various operational scenarios. We were instrumental in the NERSA application process, writing all submission documentation for the client's final review. The tariff application was successfully approved, unchallenged, by NERSA in March 2013. To our knowledge this was the ...

We created a stochastic scenario generator to integrate with the existing financial model. By doing this we retained all the complexity already built into the existing model by the client but provided insights from the same model that could not be gained by considering a single scenario at a time. We provided the client with a number of visual tools to illustrate the risks of different options and facilitate board approval of the project. ...

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 ...

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. ...

We constructed a financial model to evaluate the financial value of different regulated termination rate scenarios on the client's business. ...

The Competition Commission was preparing its case documents for its referral of Sasol Chemicals Industries (SCI) to the Competition Tribunal for alleged excessive pricing. The Commission needed assistance with responding to the technical financial aspects of SCI expert witness statements, especially as they relate to the estimation of the appropriate asset valuation and cost base of the SCI products. ...

Grové was appointed by the Transnet CEO, Maria Ramos, to assist Transnet with engaging with the newly established regulators, guide the Divisional and Corporate Executive Teams on the regulatory engagement processes, prepare and manage tariff applications, and assist with the development of internal capacity to engage with the regulatory process. ...

Grové was approached by the NER to put together a team of advisors to assist the NER to undertake the review of the Eskom tariff application. The role included project managing the entire review process, including the meetings with all stakeholders, and preparing the for the presentation of the final recommendations to the NER Board. ...

Grové was appointed to lead a consortium of advisors investigating the implications of such a regime by means of financial modelling. ...