Projects

Grové collaborated with Econex in preparing the report. The report considered the likely market power of the merged entity, Eskom's countervailing buyer power and possible anti-competitive effects of the merger. It also analysed the potential effects that the proposed merger were likely to have on Eskom's coal purchases, future electricity tariffs and on the South African economy more widely. ...

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. ...

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. ...

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. ...

Meridian was appointed as the economics advisors as part of a professional team that prepared an official complaint with the South African Competition Commission. Meridian conducted a detailed competition assessment and prepared an economists expert report that formed the central part of the submission to the competition authorities. ...

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. ...

Meridian was appointed to review the proposed changes and to prepare comments on behalf of the client with the aim of ensuring that the client's preferred commercial pricing strategy would be achievable under the new regulations. We also represented the client at a DOE consultation workshop. ...

We created a pricing mechanism using a number of objective, measurable features related to customers' consumption profiles which allowed significant variation in pricing. This mechanism created incentives for customers to improve their efficiency by rewarding customers who use gas in a more consistent manner with lower prices. Creation of the pricing mechanism required use of non-linear mathematical optimisation techniques under multiple constraints in order to satisfy the competing requirements. ...