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Review of the Independent Engineers’ Reports on the Asset Adjustment Process of Electricity Distribution and Gas Pipeline Businesses - New Zealand

The asset adjustments modify the way the valuation approaches were applied when the most recent Optimised Deprival Valuation was undertaken as part of the default price-quality regulation for regulated businesses in New Zealand. After successfully completing the review for Non-Exempt Electricity Distribution Businesses, NCL undertook the review for Gas Pipeline Business (gas distribution and transmission), and then also for Exempt Electricity Distribution Businesses. The three projects involved undertaking the review and providing advice to the Commerce Commission on the engineering reports submitted to support the asset adjustments and recommending prudent changes to the regulatory asset base of the regulated businesses.

Expenditure Review of the National Grid Corporation of the Philippines (NGCP) - Philippines

NGCP is a private corporation responsible for operating, maintaining, and developing the Philippines' state-owned power grid. NGCP is regulated by the Energy Regulatory Commission through an incentive-based type of regulation called Performance-Based Regulation (PBR). As part of the rate-making process in PBR, NGCP's actual, budgeted and forecast expenditure plans were reviewed by NCL. The project also included the assessment of the efficiency and effectiveness of the utility’s transmission development plan; its effectiveness in supporting the electricity market; and minimizing the price paid by consumers for the generation and delivery of electricity. The outcome of the review was used to determine the maximum allowed revenue that the utility will be entitled to receive from the provision of regulated transmission services for each year of the Third Regulatory Period.

Due Diligence of Various Companies – Myanmar

The foreign investment law in Myanmar was passed in 2012 which set off a wave of interest in the country. At the onset of the opening of Myanmar to foreign investments, NCL through Kris Tampinco Binwag was contracted to undertake the financial due diligence of distribution utilities in three townships in Myanmar to assist in informing the proposed investment in the distribution facilities. Following the successful completion of the project, Kris was contracted on a longer-term by the holding company of the utility to undertake due diligence studies of several companies involved in electricity generation, electricity distribution, mining, water, economic zone development & operation, airport development & operation, and oil & gas in Myanmar, with the objective of assisting the client's investment initiatives in the country.

Development of the Asset Valuation Handbook and the Development of Guidelines for Transmission Planning - Philippines

The optimised depreciated replacement cost valuation of a utility is a critical component of the regulatory reset process applied to private distribution utilities in the Philippines. In support of this process, the Energy Regulatory Commission (ERC) identified the need to develop a comprehensive regulatory asset base valuation handbook which would provide the necessary directions for conducting the valuations in order to ensure that there will be a high degree of consistency not only in the method applied but also in the replacement costs of assets. Another rule/program development that NCL separately undertook for the ERC was the development of the transmission planning guidelines for the National Grid Corporation of the Philippines (NGCP). The guideline focused not only on efficient in-depth engineering planning for the short and long-term, but also planning in order to address congestion in the electricity spot market. The guideline has taken into account the views of key stakeholders in the power industry keeping in mind the objective of ensuring the quality, reliability, security and affordability of electricity transmission services.

Review of the Regulatory Asset Base Valuations of Manila Electric Company, Cagayan Electric Power and Light Company, Inc., and Dagupan Electric Corporation - Philippines

The return on the value of the regulatory asset base is one of the main building blocks used to determine the revenue to which a regulated entity in the Philippines is entitled when determining its price-cap. NCL undertook the review of the valuation of the regulatory asset base of the three private distribution utilities (including the largest distribution utility in the Philippines, Manila Electric Company with almost 5 million customers) entering Performance-Based Regulation at the 1st Entry Point for the Third Regulatory Period, using an optimised depreciated replacement cost methodology.

Review of Western Power’s Access Arrangement for the South West Interconnected Network (SWIN) - Australia

Western Power’s SWIN is regulated under the Electricity Networks Access Code 2004 (Access Code). The Access Code outlines a framework for the preparation, approval and review of access arrangements. Proposed access arrangements detail the terms and conditions, including prices, which apply to third parties seeking the use of regulated electricity networks within Western Australia. The Economic Regulation Authority sought the services of consultants to provide technical advice in relation to the capital and operating expenditure evaluation during the review of Western Power’s access arrangement. NCL was sub-contracted to provide assistance during the review of the utility's capital and operating expenditure plans.

Expenditure Review of Angeles Electric Corporation, Bohol Light Company, Inc., Clark Electric Distribution Corporation, Panay Electric Company, San Fernando Electric Light and Power Company, and Subic Enerzone Corporation - Philippines

Review of the historic and forecast capital expenditure submitted by the 4th Entry Point of Private Distribution Utilities. The review forms part of the rate setting process under Performance-Based Regulation for the Second Regulatory Period. Services also included mentoring the Commission in their review of the operating and maintenance expenditure and taxes, levies and duties expenditure. These expenditures were inputs to the determination of the revenue to which the Distribution Utilities are entitled on which the price caps will be based.During the regulatory reset process for private distribution utilities, the regulated entities are required to submit as part of the rate applications their historic and forward forecasts of its annual capital and operating and maintenance expenditures. The purpose of the review was to determine whether the expenditure programs were based on reasonable costs, efficient, would support the forecast growth, and will allow the regulated entity to achieve or exceed the applicable target levels of performance. Approved capital and operating and maintenance expenditure forecasts will be included in the building block analysis of the Energy Regulatory Commission.

Utility Management and Strategic Support - Nigeria

Major reforms in the power sector of Nigeria were undertaken in 2013 which resulted to the privatisation of several government-owned infrastructure including 11 power distribution companies and generation companies. NCL through Pieter Nel fulfilled the role of Technical Advisor to West Power and Gas (one of the successful bidders of the privatisation process of distribution companies) in relation to the take-over of the assets within Eko Distribution Zone. Upon the take-over of Eko Distribution Company, Pieter acted as Deputy CEO overseeing regulatory, technical and financial matters. After undertaking the project for Eko Distribution Zone, NCL through Pieter Nel also assisted Abuja Distribution Company with strategic advice (including assisting with business plan development, loss reduction strategies, capital and operational plans, and commercial improvement strategies). Pieter was also responsible for specific regulatory matters including developing regulatory strategies and tariff models for the company in support of improving the accuracy of the tariff structure to consumers and improving the business’ overall viability.

System Impact Study and Facilities Study for a Natural Gas-Fired Power Plant - Philippines

NCL was contracted to develop the transmission planning guidelines for the National Grid Corporation of the Philippines (Philippines’ Transmission Operator). The guideline focuses not only on efficient in-depth engineering planning for the short and long-term, but also planning in order to address congestion in the electricity spot market. The guidelines will be issued by the Commission as part of the Performance-Based Regulation scheme for the Transmission Operator and has taken into account the views of key stakeholders in the power industry keeping in mind the objective of ensuring the quality, reliability, security and affordability of electricity transmission services.The proposed power plant project will provide clean and reliable electricity from natural gas and is expected to meet the projected need for power in the Luzon grid. Apart from this, the project is expected to significantly contribute to the local economy and provide assistance in the much needed development of the host barangay and nearby communities. The objective of the System Impact Study was to propose the best possible technically viable solution in connecting the power plant to the transmission grid. The study was performed in close cooperation with the National Grid Corporation of the Philippines (NGCP) given the major network development requirement in the area. The second phase of the study will be the conduct of the Facilities Study immediately following the approval of the System Impact Study by NGCP. The Facilities Study is a detailed study that will include a report on the project site and functional requirements, the estimate of costs of equipment, engineering designs, and procurement requirements with timelines.

Assessment of Reserve Market and Co-optimisation of Energy and Reserve in the Wholesale Electricity Spot Market (WESM) Phase 1 and 2 - Philippines

WESM commenced commercial operation as an energy only market in June 2006. Co-optimisation of energy and reserves will be introduced after the Department of Energy has determined that all market participants have complied with the conditions and criteria for the operation of the reserve market. LMP Market sub-contracted NCL to assist in providing advice to one of the biggest generating companies in the Philippines with regards to the likely impacts of the implementation of reserve market with co-optimisation of energy and reserve in the scheduling of dispatch of its generation units including strategies for managing this risk ahead of the commencement of the reserve market. The second phase of the project involved expanding the sensitivity analyses and simulations during the first phase and developing optimal strategies to mitigate risks for the client.

Due Diligence, Market Study and Development of a 10-year Business Plan for a Private Distribution Company - NigeriaDue Diligence, Market Study and Development of a 10-year Business Plan for a Private Distribution Company - Nigeria

As part of the reform of the power sector in Nigeria, the de-monopolization and subsequent privatization of the National Electric Power Authority was undertaken and since then private power investments throughout the country are being encouraged. The potential Investment in the area was an answer to the call for private investment amidst the looming power crisis. NCL was contracted to undertake a full due diligence of a distribution company in the South Eastern region of Nigeria (150,000 potential customers). The due diligence was performed to inform potential investors into the viability of the overall project (proprietary gas pipeline, power plant and distribution concession) including the assessment of potential risks associated with the prospective purchase. After the results from the full due diligence and capital and operational expenditure forecasts were presented to potential investors successfully, NCL was again contracted to assess the viability of selling power to the distribution franchise which included a comprehensive process of customer profiling. Shortly after, NCL was also contracted to develop a 10-year business plan for the distribution company.