ENERGY
Setting tariffs and service standards
We help clients with…
Setting tariffs and service standards, using benchmarking databases and financial models to develop regulatory submissions. We also help regulators assess the reasonableness of utilities’ submissions.
Electricity Distribution Proposal Review for Orion, New Zealand
Castalia helped Vector, New Zealand’s largest electricity distribution utility, ensure that the regulatory regime made suitable provision for recovery of rebuilding costs following an earthquake, through regulatory advice to the Vector and a submission to the Commerce Commission. A series of earthquakes in Christchurch had damaged much of the electricity distribution system. The local utility requested a customized price control path to enable it to recover rebuilding costs. Vector also operates in earthquake-risk areas and wanted to be sure that precedents created after the Christchurch earthquake would be suitable if it or other distribution companies were hit by a serious earthquake. Read more
Energy Tariff Submission for Jamaica Public Service Company
We argued that Jamaica’s national electricity utility needed a tariff increase to earn an adequate return on capital. Jamaica’s national electricity utility was not earning an appropriate return on capital, while being exposed to an inadequate level of risk. 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
Creating regulatory systems, so that natural monopoly elements in the energy sector are fairly priced, incentivized to be efficient, and ... 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
