Electricity Transmission, Distribution and PES Supply Revenue Controls (2006-2010)

Client: Commission for Energy Regulation.

Project Manager: Jonathan Hedgecock

Provide support to the Commission for Energy Regulation (CER) in the development and application of regulated revenue arrangements and tariffs in the power sector for the period 2006 - 2010. The revenue controls applied to Transmission Asset Owner (TAO), System Operator (TSO), Distribution System Owner (DSO) and Public Electricity Supplier (PES).

Description of Services Provided:

Asset condition assessment: PPA undertook a review of ESB (TAO, TSO and DSO) records on the state of the main installations and infrastructure, including transmission and distribution lines and substations and the associated control and communications facilities. Site visits were made to a selection of the main installations, along with a review of the companies records.

Asset lives: Determination of the engineering life of the assets was based on experiences of utilities around the world and the specific experience of ESB businesses in managing their own networks. Replacement Value of Assets: The value of the components to be used as the basis for asset replacement value assessment was ascertained from the prices being used by ESB businesses, modified to reflect best practice.

Opex Review: PPA's task was to understand the rationale underlying both historic and forecast information provided by the TAO, TSO and DSO businesses, and the key drivers that they had taken into account. Investment (capex) plans: PPA reviewed the investment plans of the businesses against the target planning standards and supply quality standards that form the regulatory framework within which system planning is carried out. Working from the demand growth projections, we evaluated the likely improvements in system performance achievable from specific investments.