Our Regulatory Services practice area covers:

• Gas industry restructuring as markets liberalise, focussing especially on the development of regulatory regimes including licencing, policies, procedures, information requirements, monitoring and compliance as well as the industry structure.

• Development of price control mechanisms and regimes and the design and modelling of infrastructure tariffs and rates, for both regulators and regulated companies. This also includes operating cost analysis, depreciation and cost of capital studies and benchmarking studies. Studies on particular topics such as the treatment of expenditure on research.

• Development of network codes, rules of access and contracts for transmission, distribution and storage services. Our expertise in the UK, US, Australian and Latin American markets enables us to design the most appropriate codes and rules for the market in question.

• Training courses and workshops on comparative regulatory regimes and the commercial impact of regulation.

 

• Evaluation Of Gas Infrastructure Projects In A Competitive Market

In a competitive market price differentials rather than traditional demand estimates increasingly drive gas infrastructure projects.

Due to its models and price forecasting capability, Energy Markets can offer developers a unique project evaluation service.

• Range Of Services We Offer

Energy Markets can offer a full range of services to investors in gas infrastructure:

• Market analysis - developing detailed projections of the gas market on a range of scenarios.
• Gas price projections - preparing projections of wholesale gas prices and gas price differentials.
• Peak demand forecasts - Projected peak flows and annual throughput profiles from the market analysis.
• Infrastructure options - identify the technical options and prepare preliminary cost estimates.
• Regulatory approval and consents - analyse the relevant requirements and assess the impact on project design and construction time.
• Project modelling - including both economic and financial analysis.
• Potential for project financing and scope for grants.

Energy Markets Evaluation:

Energy Markets results will be presented as a series of reports:

• Detailed description of the project including options and costs.
• Assumptions Book detailing all the assumptions used in our models.
• Full economic and financial analysis model, including scenario and sensitivity analysis.
• Risk assessment and risk mitigation plan.
• Project development programme.

• Types Of Projects We Can Evaluate

Energy Markets can undertake complete project evaluations for developers of all types of natural gas infrastructure projects:

• Offshore and onshore transmission pipelines.
• LNG import terminals.
• Gas storage installations.
• Distribution networks.
• Improvements or developments to existing systems.

• Helping You To Complete The Project

Energy Markets can also provide an ongoing range of services to help you to complete the project to time and on budget. These include:

• Project Management.
• Assistance in arranging Project Finance.
• Tariff design for the services offered.
• Support in negotiations with regulators.
• Organising 'Open Seasons' to pre-sell capacity.

Contact us about this service.

 

 

• Implementing Competition Into The Residential Market

The new Gas Directive of the European Union requires that supply competition be extended to all households by 2007. Energy Markets can help all gas distribution companies, large and small, to satisfy this requirement cheaply and efficiently.

• Range Of Services We Offer

Energy Markets Ltd can offer distribution companies the four key elements needed to introduce competition:

'Network Code'
Energy Markets Ltd has developed a 'Network Code' for the gas distributors who are required to offer Third Party Access to their networks. Our Code forms the basis of the gas conveyance contracts that gas shippers would have to sign. Our Code works on the assumptions that gas balancing is undertaken on the upstream transmission system and thus the main task is to allocate gas flows to shippers.

Demand Forecasting
Flows to large loads are usually monitored daily. Estimates need to be made with smaller loads where the meter is read infrequently. Energy Markets has developed a model to produce demand projections for small customers and to reconcile projected and actual flows. Thus flows can be correctly allocated to each gas supplier.

Tariff Design
Energy Markets has a tariff design model which will determine tariffs for gas conveyance on a number of options. These include entry/exit pricing, zonal pricing and distance related prices. The model can determine tariffs and calculate the correct level of charges to comply with any regulatory rules.

IT Developments
Energy Markets can specify changes that will be needed to existing IT systems to enable gas distributors to keep records of which gas supplier is serving which customer. We can also specify changes to ensure that gas suppliers can be billed in a timely and efficient manner for gas conveyance. Should it not be practical to modify existing systems, Energy Markets can provide an alternative independent system to undertake these tasks.

• Which Companies Can Our Service Help

Energy Markets can offer a very economical service thus enabling even the smallest gas distribution company on a limited budget to be able to introduce competition.

• Helping You To Complete The Project

Energy Markets can also provide an ongoing range of services to help you to complete the project to time and on budget. These include:

• Project Management.
• Support in negotiations with regulators.

• Why Energy Markets?

Energy Markets can offer clients an economic, and professional service:

• 'One Stop Shop' - Energy Markets can provide all the skills and resources needed to introduce competition.
• Proven track record.
• A fixed price, to enable work to be completed to a known and agreed budget.

Contact us about this service.