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 first levelised cost tariff to be approved by NERSA.
Project Overview
Tariff calculation and regulatory approval for gas pipeline infrastructure I
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