Projects

We are collaborating with Econex as expert economic and regulatory advisors to assist the client with developing and executing the appropriate course of action to resolve its tariff regulatory concerns. ...

Meridian was appointed to undertake a study of the international coal market. The study included an assessment of current and future export prices. ...

Meridian was tasked with developing a financial model of the mine, in conjunction with a mining engineering consultant. The aim of the model was to calculate the price for the Eskom coal that would enable the ongoing viability of the mine under different stochastically generated coal market and macro economic scenarios, and mine production configurations. ...

Meridian investigated the strategic position of the mine's shareholders as background for Eskom's negotiating position. ...

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. ...

We provided a comprehensive training session covering the legal framework. including the Gas Act, the Gas Regulations and the regulatory (NERSA) guidelines and methodologies. We demonstrated the various methods for calculating tariffs and explained their applicability. All aspects of the value chain were covered including production, loading, storage, liquefaction, re-gasification, transmission and distribution. ...

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. ...

We created all customer engagement tools to facilitate explanation of the new mechanism to customers. We additionally created modelling tools for long-term budgeting and strategic planning purposes. We wrote the software required to convert hourly consumption logger file data into the metrics required for pricing calculation and the loading of this information into the accounting system. We created a parallel calculation to check the invoicing integrity of the new process. ...

Meridian collaborated with the client's legal advisors to prepare a detailed response to the NERSA consultation document. The submssion questioned the basic premise of the approach NERSA proposed to adopt and suggested an alternative that would be compliant with the provisions of the Gas Act. ...

We collaborated with the client in preparing the application. When NERSA questioned the use of an intangible asset in the calculation of the tariff we provided further specialist advisory services to support the basis of the tariff application. ...