E-Learning Course on Price Regulation and Tariffs

February 28 - April 13, 2007

Brief Description of the Course:

The objective of this e-learning training is to equip students with the core concepts, objectives and techniques of designing and evaluating rate structures in the energy sector.

• Module 1 introduces financial analysis, one of the basic inputs of tariff development and control. It also describes the method of determining the revenue requirement of regulated energy companies. 
• Module 2 after a short introduction of basic economic concepts, describes the basic normative approaches and methods of tariff design. 
• Module 3 contains a classification of observable consumption patterns and corresponding consumer tariffs. The module also explains the rationale behind the regulation of prices through which access to transmission grids can be obtained by the participants of the competitive market.
• Module 4 compares the practical policies of rate-of-return and incentive regulation under different industry conditions, and draws attention to the often conflicting objectives involved in the process of designing a practical regulatory policy.
• Module 5 shows how the likely effects of different policy measures can be investigated, and raises some important aspects to be considered when assessing social impacts of energy policy decisions.

The course was facilitated by the academic staff of the Regional Center for Energy Policy Research (REKK) as well as by some practising regulators. The course director is Peter Kaderjak. It will run for 6 weeks and will be given in English and in Russian languages. Each module will have a series of assignments that must be completed over a one-week period of time and with specific deadlines. The “class” will consist of some 40-50 practicing ERRA regulators. It will provide participants with a good opportunity to gain new insights and develop professional relationships.

The course was available at the following website:

http://erra.eduweb.hu/