Projects

Meridian has been appointed to prepare the tariff application on behalf of the client. The work entails: developing a detailed tariff model which considers the implications of different tariff methodologies, and enables detailed scenario and stochastic analysis to be performed; the preparation of the tariff application document itself; and assistance with regulatory engagement throughout the process. ...

Meridian was requested to conduct a comprehensive analysis of the implications of the new methodology, and to prepare a submission to NERSA on behalf of the client. We developed a financial model to compare the impact of the three possible tariff methodologies being considered and evaluated each from the perspective of the client's commercial and financing strategy. It became clear that the new proposals exposed investors to significant new risks, which, if not adequately addressed by the regulatory regime, could scupper new investment. We are also assisting the client with ongoing engagements with the Regulator regarding their concerns about the ...

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. ...

Meridian conducted a review of the regulatory regime that applies to the different aspects of the piped gas value chain (including production, transmission, compression, storage, re-gassification, distribution, trading, etc.) and advised the client accordingly. ...

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. ...

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 ...

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 ...

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 provided a comprehensive review of the Eskom MYPD2 tariff application and assisted the client with executive-level engagements with Eskom in order to obtain more details on aspects of the application. We prepared the final regulatory submission on behalf of the client. ...