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Utility Regulatory Systems
IRG has world-class expertise and resources in energy, water, sanitation and other sector regulation, policy, tariffs, accounting, financing, and engineering. For more than two decades, we have worked with governments, regulatory authorities, and utilities to create regulatory authorities, enhance regulatory practices and foster commercially and financially sustainable operations. IRG works with our partners on the full range of technical activities, as well as strengthening of national and regional linkages and capacity so that policy, operational, and institutional progress are sustained and reinforced long after project completion.
Capabilities:
- Supporting Legal, Regulatory and Managerial Mechanisms
- Developing Enabling Policy and Regulatory Frameworks
- Implementation of Effective Market-based Solutions
- Strengthening Technical, Analytical and Managerial Capacity
- Utility Operations
- Policy and Planning
Select projects include:
Providing Assistance, Policy Advice to Regulate Utilities for Water and the Environment
The IRG team provided technical assistance and policy support for the Romanian Ministry of Waters, Forests, and Environmental Protection for a range of issues related to water and environment utility regulation. In particular, IRG assisted with the reorganization of the national water utility into basin water companies and into river basin committees. It also provided a methodology for full-cost pricing, generating revenues for investments in water supply by the river basin committees. Additionally, it helped to develop and implement a national water sector financing plan. In the environment sector (air and soil), it offered support for the reorganization of the ministry, the establishment of the national certification commission, the development of a national environmental funding facility and a national remediation fund. Romania: Environmental Policy and Institutional Restructuring (EPIQ IQC)
Restructuring and Improving Performance in Power Utilities
IRG assisted the Nepal Electricity Authority (NEA) to prepare for restructuring of its organization to improve accountability, enhance efficiency and reduce costs. IRG experts first conducted a diagnostic study to evaluate NEA's recent financial and technical performance, assessed NEA's ability to meet its current and likely near-term obligations, and analyzed NEA's current reform plans such as performance contracts and the establishment of commercial centers within NEA. The IRG Team benchmarked NEA's performance against that of other comparable utilities and formulated more detailed reform options, culminating in a time bound, phased "road map" for NEA. Other project activities included determination of the marginal cost of power supply and the value of firm and non-firm energy on a seasonal basis in order to develop appropriate tariffs for power purchase agreements. In addition, IRG experts identified opportunities for improvements in efficiency of electricity use in Nepal and for reductions in peak loads. Nepal: Power Sector Reform (Asian Development Bank)
Supporting Efficient, Sustainable and Competitive Electricity Markets
IRG provided the Egyptian Electric Utility and Consumer Protection Regulatory Agency with technical assistance to enable effective, independent regulation and support an efficient, sustainable, competitive electricity market in Egypt. Efforts included developing the tools and processes necessary for efficient market regulation through analyzing restructuring models around the world and evaluating their applicability in the Egyptian power sector. Through three successive projects funded by USAID, IRG worked with the Agency to build the capacity to develop rational tariff rates, analyze utility performance trends, and develop a market transition plan. IRG also drafted an Electricity Law and secondary legislation for improving the electricity market, worked with the Agency to institute technical and financial performance benchmarking of generation, transmission and distribution utilities, implemented cost of service model and proposed a tariff reform plan. Egypt: Egyptian Regulatory Agency Consulting Services, Technical Assistance to Power Sector in Egypt, Egyptian Electricity Regulatory Project
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