• English
    • français
    • Deutsch
    • español
    • português (Brasil)
    • Bahasa Indonesia
    • русский
    • العربية
    • 中文
  • English 
    • English
    • français
    • Deutsch
    • español
    • português (Brasil)
    • Bahasa Indonesia
    • русский
    • العربية
    • 中文
  • Login
View Item 
  •   Home
  • Ethics collections
  • Corruption and Transparency Collection
  • View Item
  •   Home
  • Ethics collections
  • Corruption and Transparency Collection
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Browse

All of the LibraryCommunitiesPublication DateTitlesSubjectsAuthorsThis CollectionPublication DateTitlesSubjectsAuthorsProfilesView

My Account

Login

The Library

AboutNew SubmissionSubmission GuideSearch GuideRepository PolicyContact

Statistics

Most Popular ItemsStatistics by CountryMost Popular Authors

An Introduction to Financial and Economic Modeling for Utility Regulators

  • CSV
  • RefMan
  • EndNote
  • BibTex
  • RefWorks
Author(s)
Estache, Antonio
Rodriguez Pardina, Martin
Rodriguez, Jose Maria
Sember, German
Keywords
REGULATORY ENVIRONMENTS
UTILITIES
INCOME LEVELS
SAVINGS
LABOR MARKETS
MARGINAL COST
EXCHANGE RATES ACCOUNTABILITY
ACCOUNTABILITY
PUBLIC ENTERPRISES
MANDATES
CONSUMERS
PRODUCTIVITY
ECONOMIC MODELS
ECONOMIC EFFECTS
BALANCE SHEET
TAX SYSTEMS
INVESTMENTS
REGULATION
DEBT
POLICY INSTRUMENTS
COLLUSION
WILLINGNESS TO PAY
RISK PREMIUM
ACCOUNTING SYSTEMS
DEBT COVERAGE
PRIVATIZATION
TARIFFS
PUBLIC SERVICE
QUALITY
LONG RUN MARGINAL COST PRICING
CASH FLOWS
BASKET OF GOODS
TAX
EXCHANGE RATE
OPERATING COSTS
EQUILIBRIUM
CD
SHADOW PRICES
REGULATORY REGIMES
DECISION MAKING
EMPLOYMENT
PROFIT RATE
PROFITABILITY
CROSS SUBSIDIES
MONOPOLIES
PUBLIC HEARINGS
FORECASTS
RESOURCE ALLOCATION
LICENSES
PUBLIC UTILITY REGULATION
WHOLESALE PRICE INDEX
COST MINIMIZATION
ELECTRICITY
CONTRACTUAL ARRANGEMENTS
MACROECONOMIC CONDITIONS
PRICE LEVELS
COST OF CAPITAL
BENCHMARKS
FINANCIAL MARKETS
DEBT SERVICE
PRIVATE SECTOR
FINANCIAL STRUCTURE
ALLOCATIVE EFFICIENCY
GDP
SALES OF ASSETS
SOFT BUDGET CONSTRAINTS
AVERAGE COSTS
ASSET VALUATION
CONTRACT ENFORCEMENT
INCOME
TRANSPARENCY
LEGISLATION
SUBSIDIES
OPPORTUNITY COST
DEPRECIATION
EXCHANGE RATES
PRESENT VALUE
MARKET PRICES
BORROWING
PROVISION OF INFRASTRUCTURE
TOTAL COSTS
MARGINAL COST PRICING
INFLATION
REGULATORY FRAMEWORK
RATE OF RETURN
ACCOUNTING
PRICE DISCRIMINATION
BENCHMARKING
DECISION VARIABLES
EXTERNALITIES
CASH FLOW
TELECOMMUNICATIONS
QUALITY STANDARDS
CONSUMPTION LEVELS
CREDIT MARKETS
PRODUCT MARKETS
FINANCIAL PERFORMANCE
MARGINAL COSTS
DEVALUATION
PUBLIC SERVICES
PUBLIC SECTOR
PRICE CONTROLS
REGULATORY OBJECTIVES
ECONOMETRIC MODELS
Show allShow less

Full record
Show full item record
URI
http://hdl.handle.net/20.500.12424/93815
Online Access
http://hdl.handle.net/10986/18275
Abstract
The most effective regulators in
 developing countries are following remarkably similar
 approaches. The main common element across "best
 practice" countries is the use of relatively simple
 quantitative models of operators' behavior and
 constraints to measure the impact of regulatory decisions on
 some key financial and economic indicators of concern to the
 operators, the users, and the government. The authors
 provide an introduction to the design and use of these
 models. They draw on lessons from international experience
 in industrial and developing countries in ordinary or
 extraordinary revisions and in the context of contract
 renegotiations. Simplifying somewhat, these models force
 regulators to recognize that, in the long run, private
 operators need to at least cover their opportunity cost of
 capital, including the various types of risks specific to
 the country, the sector, or the projects with which they are
 involved. Because these variables change over time,
 scheduled revisions are needed to allow for adjustments in
 the key determinants of the rate of return of the operator.
 These revisions are a recognition of the fact that all these
 determinants-tariffs, subsidies, quality, investments, and
 other service obligations-are interrelated and jointly
 determine the rate of return. At every revision, the rules
 of the game for the regulator are exactly the same: to
 figure out the changes in the cost of capital and to adjust
 the variables driving the rate of return to ensure that it
 continues to be consistent with the cost of capital. If they
 can draw on reasonable data, these models do everything any
 financial model would do for the day-to-day management of a
 company but take a longer term view and include an explicit
 identification of the key regulatory instruments. They can
 monitor the consistency between cash flow generated by the
 business on the one hand and debt service and operational
 expense needs on the other to address the main concerns of
 the operators. They can also account for a large number of
 key policy factors including access and affordability
 concerns for various types of consumers. They generally
 account for the sensitivity of operators and users to
 various regulatory design options.
Date
2003-03
Type
Publications & Research
Identifier
oai:openknowledge.worldbank.org:10986/18275
http://hdl.handle.net/10986/18275
Copyright/License
CC BY 3.0 IGO
Collections
Corruption and Transparency Collection

entitlement

 

Related items

Showing items related by title, author, creator and subject.

  • Thumbnail

    Drawing a Roadmap for Oil Pricing Reform

    Kojima, Masami (World Bank, Washington, DC, 2013-05)
    In 2011, the median oil imports rose to 5 percent of gross domestic product for net importers. In the past several years, many governments have not passed through the world oil price increases to consumers fully. As a sign of divergent pricing policies, the retail prices of gasoline, diesel, and cooking gas in January 2013 varied by a factor of 190, 250, and 70, respectively, across developing countries. Policies to keep oil product prices low to benefit the economy and protect the poor have had a number of unintended negative consequences, including flourishing corruption in the oil sector and entrenchment of monopoly operators or inefficient firms through which subsidies are channeled, stifling competition and raising costs. The path to market-based pricing depends on the starting conditions: the gap between current and market-based price levels, the level of public awareness about the extent of departure from market prices, the degree of market concentration and competition in downstream oil, the subsidy delivery mechanism where subsidies are provided, the robustness of social service delivery, and the perceived credibility of the government. The evidence presented in this paper suggests that pricing reform often does not have a clear end and should instead be viewed as a continuous process of adjustment and search for mechanisms that take into account the country's institutions and political system, and the oil sector's market structure, infrastructure, and history.
  • Thumbnail

    International Grain Reserves : And Other Instruments to Address Volatility in Grain Markets

    Wright, Brian (2012-03-19)
    In the long view, recent grain price
 volatility is not anomalous. Wheat, rice, and maize are
 highly substitutable in the global market for calories, and
 when aggregate stocks decline to minimal feasible levels,
 prices become highly sensitive to small shocks, consistent
 with storage models. In this decade, stocks have declined
 due to high income growth and biofuels mandates. Recently,
 shocks including the Australian drought and biofuels demand
 boosts due to the oil price spike were exacerbated by a
 sequence of trade restrictions by key exporters beginning in
 the thin global rice market in the fall of 2007, which
 turned market anxiety into panic. To protect vulnerable
 consumers, countries intervened in storage markets and, if
 they were exporters, to limit trade access. Recognizing
 these realities, vulnerable countries are building strategic
 reserves. The associated expense and negative incentive
 effects can be controlled if reserves have quantitative
 targets related to the consumption needs of the most
 vulnerable, with distribution to the latter only in severe
 emergencies. More-ambitious plans manipulate world prices
 via buffer stocks or naked short speculation to keep prices
 consistent with fundamentals. Past interventions of either
 kind have been expensive, ineffective, and generally
 short-lived. Further, there is no significant evidence that
 prices do not reflect fundamentals, including export market access.
  • Thumbnail

    Reforming Fuel Pricing in an Age of $100 Oil

    Kojima, Masami (World Bank, Washington, DC, 2014-01-07)
    Increases in world oil prices since 2004 have challenged consumers and oil-importing countries across the world. Oil prices temporarily fell sharply in 2009, only to triple three years later. The oil import share of gross domestic product rose by nearly half among net oil importers in just two years between 2009 and 2011. Governments that control oil product prices have come under pressure to intervene by keeping domestic prices low and effectively subsidizing consumers. This study focuses on the evolving role of oil in national economies, particularly those of developing countries, and proposes a menu of options for drawing a roadmap for pricing policy reform for oil products. In light of events since 2009, it examines how recent price movements have affected countries' vulnerability to world oil price increases, how governments have adjusted domestic fuel prices in response, the consequences of the policy responses, other coping mechanisms to deal with high oil prices and price volatility, the roadblocks to reforming pricing policy, and how to deal with them. This report suggests a menu of options for moving away from sectoral subsidies to market-based pricing, accompanied by an integrated social protection program and complementary policies to reduce consumption through efficiency improvement and fuel diversification. Sending the right price signals and reducing consumption can bring many benefits, ranging from greater supply security to less congestion and pollution from road transport. This report can help policy makers conduct more informed national dialogues on managing fuel pricing and the political economy around it.
DSpace software (copyright © 2002 - 2023)  DuraSpace
Quick Guide | Contact Us
Open Repository is a service operated by 
Atmire NV
 

Export search results

The export option will allow you to export the current search results of the entered query to a file. Different formats are available for download. To export the items, click on the button corresponding with the preferred download format.

By default, clicking on the export buttons will result in a download of the allowed maximum amount of items.

To select a subset of the search results, click "Selective Export" button and make a selection of the items you want to export. The amount of items that can be exported at once is similarly restricted as the full export.

After making a selection, click one of the export format buttons. The amount of items that will be exported is indicated in the bubble next to export format.