Electricity markets are structurally different to other commodities, and the real-time dynamic balancing of the electricity network involves many external factors. Because of this, it is not a simple matter to transfer conventional models of financial time series analysis to wholesale electricity prices. Its unique features are not observed in other markets, such as weekly and daily seasonality’s, on-peak vs off-peak hours, price spikes, etc. The fact that electricity is not easily storable and the requirement to meet the demand always makes forecasting techniques challenging.
This Financial Modelling & Tariff Setting for Utility Sector training course presents the current state-of-the-art electricity price and financial forecasting methods, including statistical time series analysis, equilibrium models, and portfolio methods. It is designed to help delegates build their own utility tariff setting model from scratch and engage in simulation cases to acquire the best practices in modelling revenue requirements.
By the end of this training course, the participants will be able to:
- Understanding the new challenges of the Energy sector
- Evaluate the impact of the latest Energy regulatory frameworks
- Develop economic models relevant to the Power Industry: RAB
- Understand the dynamics and challenges of Forecasting and Modelling Utility Price
- Evaluate the performance of Power Industry projects using financial models
The delegates on this training course will receive thorough training on the subjects utilising a variety of proven adult learning teaching and facilitation techniques include the following:
- A presentation in a highly interactive manner
- Individual and group activities, interspersed throughout the sessions, along with appropriate case studies
- Video documentaries that will highlight the significant teaching features
Professionals in the power sector need specialised skills, particularly financial modelling for tariff setting, which is a core skill set lacking in the municipal and utility space.
The organisation will gain a broader range of benefits that participants gain and apply to benefit their organisations.
- The rationale behind Traditional Financial Models vs Utility Tariff Model
- The quantitative techniques of tariff paths such as regulatory asset base, the weighted average cost of capital, and energy and input costs
- Understand the dynamics and challenges of Forecasting and Modelling Utility Price
- Tools to Forecasting in Utility Sector (OPEX, CAPEX and Depreciation)
- The practical skills to build a Tariff Model from Scratch
- Sensitivity of Tariff to WACC and Capital Costs
The course will see delegates build their financial model for “utility tariff setting”, with the constituent parts (regulatory asset base, the weighted average cost of capital, energy/input costs etc.) unpacked and developed in detail throughout the week.
By attending this ETC training course, the delegates will acquire the following skills and competencies:
- Develop a greater understanding of the intricacies of Utility Regulatory Framework
- Acquire financial engineering vocabulary
- Build Economic Tariff Model from the scratch
- Develop investment calculations: OPEX, CAPEX & Depreciation
- Make more sound decisions regarding future Utility projects and plans
This specialized one-week course provides managers, senior professionals and advisors in utilities, regulatory authorities and government the skills needed to set tariffs in a regulated context. The seminar is suitable to a wide range of professionals in Power Sector but will greatly benefit:
- Professionals in utility sector
- Employees in Municipalities
- Officials in regulatory authority or government
- Utility Board member
- Infrastructure Fund managers
- Those responsible for managing or monitoring Energy related projects
DAY ONE: INTRODUCTION TO UTILITY ECONOMIC REGULATION MODEL DRIVERS AND SCENARIOS
- Power Utility Challenges
- Key Regulatory Objectives / Aspects of Tariff Regulation
- Objectives of Economic Regulation
- Overview of Economic Regulatory Methodologies
- Need for Financial Models
- Final Model Overview
- Financial Modelling as A Regulatory Tool
DAY TWO: UTILITY SUSTAINABILITY
- Economic Sustainability
- Financial Sustainability
- Modelling Alternatives: Real vs Nominal - Firm or Equity Holders - Tax Treatment - Flow vs Discount Rate
- Demand Projections
- Revenue Requirement Building Blocks
- Best practices in modelling revenue requirements to determine tariffs
- Presentation of Simple Integrated Model: Single Year Model
- Limitation of Test-Year Approach: Multiyear Tariffs
DAY THREE: REGULATORY ASSET BASE
- Asset Base Evolution
- RAB & Depreciation Notes
- Asset Valuation
- Asset Base: Which assets to include and how to value them for regulatory purposes?
- Historic vs Replacement Values
- Final Asset Base
- Historic vs Forecast Modeling: Develop flexibility in the model to review historical data and determine a forecast
DAY FOUR: OPPORTUNITY COST OF CAPITAL WACC
- Weighted Average Cost of Capital (WACC)
- Risk Aversion
- Risk vs Returns
- Cost of Debt (Credit Ratings)
- Country Risk Premium and Sovereign Risk Rating
- WACC Calculations: Add WACC Calculation and Revise Current Tariff Requirement
- Sensitivity of Tariff to WACC and Capital Costs: Review the impact of each input to WACC on the tariff required
DAY FIVE: DEPRECIATION, OPEX, AND CAPEX
- Regulatory Aspects of Depreciation
- Depreciation Calculations I
- Depreciation Calculations II
- OPEX: Benchmarking Efficiency Factors & Regulatory Treatment of Losses
- Operating Cost: Develop operating costs calculations Efficiency Factor Estimates
- Investments: Develop Investment Calculations (definition and use of CAPEX drivers - energy users peak demand, etc.)
- Exogenous Investments
- Endogenous Investments: Financial Restrictions & Impact of WACC and Depreciation on Financeable Investments
We offer two main training formats to cater to different preferences and needs:
- Classroom Training Delivery – Our traditional classroom-based training courses provide a face-to-face learning experience with subject matter experts. You’ll benefit form in-person interactions, hands-on exercises, and a structured classroom environment.
- Online Training Delivery – We also offer convenient live/online training courses that you can access from anywhere with a stable internet connection. These courses provided flexibility and allow you to learn anywhere, making them suitable for busy schedules or remote learning.
The Energy Training Centre Certificate of Completion with corresponding learning hours who has successfully completed the training course.
Yes, we provide assistance by issuing a Letter of Invitation stating that you are confirmed to attend our training.
We value transparency and are happy to provide our instructor’s profiles upon request. If you would like to learn more about our instructor’s’ qualifications, expertise, and experiences, please email us at info@energytraining.ae.
Yes, we do. We provide tailored training courses designed to meet the specific requirement of larger group of individuals. These customized training courses can be conducted both classroom and online formats, allowing you the flexibility to choose you preferred dates and duration.
Please contact us at inhouse@energytraining.ae to discuss your group’s training needs, and we’ll work with you to create a personalized training course that aligns with your objectives.
We have multiple international training venues. You may find this through our website link: https://energytraining.ae/training-locations
Our training courses are held at our partnered hotels within the city included within our training
Yes, here are the following options we can offer to assist you:
- Corporate Discount – We can extend our corporate discount to participants staying at the same hotel, if we have any. Please enquire about the availability of this discount when you register for the training course.
- Nearby Hotel Suggestions – If you prefer other accommodations, we can provide a list of nearby hotels to suit your needs and budget.
Feel free to go through hotel booking platforms on the internet to find the most cost-effective for you.
No, we do not provide job placement services after the training course. However, we are confident that our training course equips you with the necessary tools and knowledge to enhance you career prospects and promote career growth. Our training course are designed to empower you with valuable skills and expertise to excel in your chosen field.
- Tuition fee for a 5-day training course
- Provision of a world-class subject matter expert to deliver this training
- Meeting at a hotel venue corresponding to your chosen session
- Welcome food and drinks, AM / PM snack, and Lunch
- Digital course materials (e-Tablet)
- Course completion certificates
- Designing and administration of Pre-& Post Course Assessments
- Preparation of participant’s Performance and Appraisal Report, if required
- Issuance of Letter of Invitation for delegates needed visa processing, if required
- Tuition fee for a 5-day online training course
- Provision of a world-class subject matter expert to deliver this training through live/virtual delivery
- An electronic copy of the training manual and relevant hand-outs
- Issuance of The Energy Training Centre e-Certificate of Completion
- Administration of Pre-& Post Workshop Assessments
- Link access of online platform acceptable to both parties
Certainly, we do provide corporate rates tailored for organizations seeking to enrol multiple employees in our training programs. To facilitate this, we encourage you to make a formal request via email addressed to info@energytraining.ae. We’ll be delighted to discuss and offer a suitable arrangement for your corporate needs.
Yes, special discounts are available upon request if you have more than one registrant for a course. For further information please email us at info@energytraining.ae
We offer two convenient payment options:
- Bank Transfer – You can make payment via bank transfer. Once your registration is confirmed, you will receive an invoice with the banking details for the transfer. We would require you to supply a swift copy for us to confirm receipt of funds.
- Payment Link – Alternatively, we provide a secure payment link that you can use to complete your payment after your registration has been confirmed.
Upon receipt of your registration details sent via email at reg@energytraining.ae, we will send you the following by e-mail within 24-48 hours of registration.
- Joining Instructions
- Invoice/receipt (where appropriate)
If you register online, you will receive an e-mail on the same day confirming your registration.
There are two convenient options to register for a training course:
- Online Registration Form – Register for your desired training course by completing the online registration form available on our website. Simple click on the registration button or select your preferred dates and provide the requested information.
- Email Registration – You can email us your intention to register at info@energytraining.ae. Our team will guide you through the registration process and provide assistance you may need.
Yes, we do allow registration transfers in the event that you are unable to attend the training course. To initiate a transfer, please send us an official email requesting the change. We’ll guide you through the transfer process and ensure a smooth transition of your registration to another eligible participant.
Our training course sessions are scheduled and posted on our website for your convenience. However, we understand that there may be specific requirement for your group. If you have a preferred venue and specific training dates in mind, please feel free to propose them to us by clicking on the button “Propose you preferred location & date” of your preferred training course.
Our course timings slightly vary between the cities we offer our training courses. Please let us know of your preferred course and session (dates/venue) through email at info@energytraining.ae. Alternatively, you may call/WhatsApp us at +971 50 746 0956.
We understand that time zones may be different between our Senior Consultants and our delegates. Our standard online course timings (11:00 AM to 4:00 PM, GMT+4 – Dubai, UAE) may be adjusted upon confirming the programme. Our team shall communicate between the confirmed registered delegates and suggested a suitable course timing for all.
Our standard course duration for our classroom programmes is 6 hours per day while our online session is 5 hours per day.
Our training programmes are designed to be concise yet comprehensive, focusing on professional development. The duration varies based on the specific course content and objectives – we normally offer programmes between 5 – 10 days. However, our emphasis lies in delivering interactive and engaging sessions that prioritize depth of learning within a condensed timeframe. This approach ensures participants acquire substantial knowledge and skills efficiently.
We have been assessed by TUV Rheinland Middle East FZE and comply with Quality Management System standards – ISO 9001:2015 and ISO 29993:2017, ensuring a commitment to quality and excellence in our operations and services.
Our training courses span across diverse industries, encompassing sectors such as but not limited to:
- Power & Utilities
- Oil & Gas
- Financial Institutions
- Government and Regulatory bodies
- Manufacturing & Production Industry
Our commitment lies in continuously refining and expanding our training course offerings to align with evolving industry landscapes. We encourage individuals to explore our website or engage with our dedicated support team for the latest information on available courses, ensuring access to the most pertinent and current educational resources.
Yes, Energy Training Centre is an ILM Recognised Provider (ID# 002398B), authorized to register learners and offer training courses recognized by ILM. Participants seeking ILM Recognised Certification would need to complete an assessment post the ILM Recognised courses. ILM is a renowned provider of leadership and management qualifications, part of the City and Guilds Group. Additionally, our company is a CPD Certified Training Company, ensuring our commitment to continuous professional development standards.
