News & insights
Date: June 2017 | Client: Commission for Regulation of Utilities (CRU) | Sector: Energy | Gas | Energy networks | Expertise: Regulation & competition
Setting of allowed revenues for the gas transmission & distribution
CEPA, Rune Associates and Wavestone advised the Commission for Energy Regulatory (CER), now the Commission for Regulation of Utilities (CRU), on setting allowed revenues for Gas Networks Ireland’s (GNI) Transmission System Operator (TSO) and Distribution System Operator (DSO) businesses over the PC4 price control period (from October 2017 to September 2022).
Advice provided has included:
- evaluating the theoretical and technical assumptions underpinning the current revenue controls including providing a training session on price control process and economics;
- reviewing the capital and operational expenditure of GNI during the current control period against allowed revenues;
- advising on the procurement processes used by GNI for outsourcing work with a view to ensuring that processes result in competitive, market-based prices;
- benchmarking GNI service provision, operating and capital investment activities against comparable organisations;
- reviewing the incentives that were placed on GNI over the period 2012-2017 and providing recommendations on incentive mechanisms for the forthcoming price control;
- advising on maximum allowed revenues throughout the review period including treatment of uncertain costs over the control period.
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