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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:

Strengthening the Performance of Regulatory Agencies and Energy Utility Companies
Under this project, IRG is providing high-quality technical advisory services to strengthen the capacity of the Bangladesh energy regulatory agency and the energy utilities it monitors. IRG’s approach delivers both policy support to improve the legal and regulatory climate for the energy sector and management support to make the operations of national and local energy authorities more efficient. IRG facilitated BERC’s first Energy Consumers’ Roundtable, with “standing room only” crowds in many of the sessions, evidencing BERC’s new found legitimacy and influence. At the same time, the IRG Team is building capacity to improve and promote the self-reliance of the Bangladesh rural electric cooperativesby improving financial viability and managerial independence. Bangladesh: Increasing Capacity for Energy Access in Bangladesh

Harmonizing Tariffs to Support South East Europe Energy Markets
Collaborating with the Council of European Energy Regulators working group, IRG worked to develop an inventory of the tariff methodologies for electricity and gas in each project country and defined the issues of developing a common methodology, including residential tariff blocks, grid access tariffs, and cogeneration tariffs. IRG also highlighted specific issues for harmonizing regulations in the South East European energy markets with CEER countries. The harmonization was coordinated with the efforts of the Energy Regulators Regional Association and its tariff committee. Europe: South East Europe Regional Energy Market Support

Improving Heating Services
The IRG Team is working with Government of Ukraine counterparts to strengthen the legal, regulatory, and institutional framework to improve heating services and bring the heating sector into compliance with EU legislation. We recently selected 35 cities for pilot projects to develop municipal energy plans, identify energy efficiency investment opportunities, obtain financing, implement energy efficient technologies and methodologies, and monitor results. A comprehensive energy efficiency outreach and communications program educates students through tailored curricula, alerts the public through public service announcements and heightens awareness through the use of billboards. Ukraine: Municipal Heating Reform Project

Restructuring and Improving Performance in Power Utilities
Under a project for the Asian Development Bank, IRG aided the Nepal Electricity Authority (NEA) to prepare for restructuring through institution of measures 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 near-term obligations. IRG experts analyzed NEA's current reform plans such as performance contracts and the establishment of commercial centers within NEA and then benchmarked NEA's performance against that of similar 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

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, and competitive electricity market in Egypt. Through three successive projects funded by USAID, IRG worked with the Agency to build capacity to enact 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 a 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

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 water basin 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: Energy Regulatory and Restructuring Assistance

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