Principles of Economic Regulation and Electricity Tariffs

Principles of Economic Regulation and Electricity Tariffs

ERRA Principles of Economic Regulation – Electricity Tariffs training course

Budapest, 10-13 February, 2020

The training program is an opportunity for regulation and utility professionals to obtain a detailed insight into the allowed revenue calculation and electricity tariff-setting process. This important and technically complex role of regulators will be broken down in a step-by-step fashion, with a 4-day interactive training programme, to ensure trainees obtain a sound understanding of the fundamental objectives of price regulation and the techniques regulators employ to achieve them. Theoretical discussions and examples of international best practices will be complemented by practical excel exercises.

ERRA is teaming up with DNV GL to cover topics related to wholesale market deregulation, renewable energy support schemes, capital expenditure efficiency analysis and converting revenues into distribution and transmission tariffs. Theoretical discussions will be coupled with practical excel exercises, making this 10th ERRA tariff course one of a kind.


The training will commence with a high-level overview of the regulatory roles in price regulation, discussing fundamental economic principles behind regulation, addressing market failures and regulatory intervention and reviewing renewable energy pricing principles.  Emphasis will then be placed into transmission and distribution network regulation, the main components of the allowed revenues under the building block approach and regulatory tools in reviewing the reasonableness of capital expenditure investment plans. This will include an assessment of investment risks in infrastructure regulation, risk-mitigation mechanisms through predictable regulation and efficiency analysis for imputing efficiency gains into capital and operational expenditure.

Following a top-down approach, after setting the allowed revenues, regulators are faced with the challenge of converting these revenues to regulated tariffs and charges. The training course will discuss principles of transmission and distribution network charges and review objectives of various systems of tariff design and cost-allocation methodologies.

Finally, the course will focus on challenges of deregulating retail markets and mitigating impacts of market exposure on customers, institutional roles in protecting vulnerable customers and examples of protection schemes that mitigate market distortion.

The Tariff Training Course is eligible for 10 credits and contributes towards ERRA’s Certified Energy Regulator award.


More information and registration here: