ENERGY
Designing regulation
We help clients with…
Creating regulatory systems, so that natural monopoly elements in the energy sector are fairly priced, incentivized to be efficient, and able to attract the finance they need.
Review of the Electricity Pricing Commissioner’s Power, Australia
Castalia provided an independent opinion to the New South Wales Government and Parliament on the adequacy of the powers of the new Electricity Price Commissioner. The Government promised that a planned electricity privatization would not increase electricity prices, but there was concern that the Electricity Price Commissioner, charged with ensuring this, lacked the necessary powers. Read more
Reforming Bermuda’s Electricity Sector Overhaul
Castalia led a comprehensive advisory that reformed Bermuda’s electricity sector, created a new Electricity Sector Policy and the New Electricity Act, a Fuels Policy, and allowed completing its first Integrated Resource Plan and procuring the first large-scale solar PV project. Bermuda needed to overhaul its electricity sector regulatory framework to attract large-scale renewable and alternative fuel projects to reduce its emissions from burning fossil fuels. Read more
Review of Capital Expenditure Guidelines for Electricity Distributors, Australia
Castalia showed how Australian Energy Regulator’s guidelines for capital expenditure reviews would increase risk for distribution businesses. Five private electricity distribution companies wanted to be sure the new guidelines embodied best regulatory practice. Read more
Water Sector Restructuring, Oman
Castalia helped the Government of the Sultanate of Oman merge various water providers into three regional utilities, develop business plans, calculate cost recovery tariffs, recommend subsidies, and develop a new regime for economic regulation. We assessed the likely impact of the reform. Oman’s government was spending $447 million each year to provide water services and wanted to reduce public spending on water while expanding service. Read more
Design of Regional Utility Regulator for the Eastern Caribbean
We advised Eastern Caribbean nations on establishing a regional electricity regulator. Island states in the Eastern Caribbean face high electricity costs, but are too small to justify a regulator for each country. Read more
Services
Transforming energy sectors, taking advantage of disruptive technologies, increasing resilience and sustainability, and minimizing costs and fiscal risks, while enabling ... Read more
Improving utility performance, bench marking efficiency, developing turnaround plans, reforming governance, and attracting commercial finance ... Read more
Identifying competition problems in energy markets, using econometric and market models we assess if markets are being manipulated, whether mergers ... Read more
Creating energy markets, drawing on our expertise with multiple power and gas markets worldwide to design resilient markets that ensure ... Read more
Setting tariffs and service standards, using bench marking databases and financial models to develop regulatory submissions. We also help regulators ... Read more
Creating systems to attract private investment to the energy sector through developing the rules and institutions to procure privately financed ... Read more
Monitoring and managing fiscal risks from the energy sector, by modelling hidden subsidies, contingent liabilities and future investment needs, creating ... Read more
Developing master plans and integrated resource plans, using our suite of planning and optimization models to combine transmission, generation, storage, ... Read more
Developing projects and pipelines of projects, helping clients to identify sites, meet regulatory requirements and optimize project economics. We also ... Read more
Appraising and diligencing projects and brownfield investments using market and financial models to forecast costs and revenues. We determine technical, ... Read more
Blending private and public finance into viable deal structures, combining government and multilateral grants, loans and guarantees with commercial finance ... Read more
Managing transactions, carrying sustainable energy projects through to financial close, while protecting the public interest and ensuring transparency ... Read more
Expert evidence when disputes arise, providing authoritative, independent opinions on regulatory reasonableness. ... Read more
Resource management and environmental sustinability by advising on cap-and-trade systems for emissions, carbon taxes, renewable portfolio credits and other mechanisms ... Read more
Appraising electricity sector policies using economic tools to assess whether new policies will create a net social benefit. ... Read more
Reviewing performance and learning lessons from energy sectors, using comparative case studies and counterfactual analysis to assess what works, where ... Read more
