The following are selected projects indicating our experience. Client names are disclosed only where work is in the public domain.

Tenaga Nasional Berhad (TNB) Malaysia – Incentive Based Regulation (IBR) Submission

EMCa assisted TNB with preparation and justification of its capital and operational expenditure forecasts (and supporting narratives), WACC, RAB, Incentive Scheme parameters and targets, and regulatory accounting methods including regulatory depreciation and RAB roll-forward. The advice encompasses transmission and distribution activities across peninsular Malaysia as well as other operating divisions.

Malaysian Energy Commission – Benchmarking

With an associated firm, EMCa is advising the Malaysian Energy Commission (Suruhanjaya Tenaga) on benchmarking expenditure, prices and performance in the Malaysian electricity generation, transmission and distribution sectors.

Economic Regulatory Authority (ERA) – Reviews of gas network regulatory expenditure allowances

EMCa advised the ERA on proposed expenditure requirements for two gas network businesses in Western Australia. This work involved applying applying a mix of network business management, management engineering, asset management and regulatory economic disciplines to the reviews.

Australian Energy Regulator (AER) – Reviews of network regulatory expenditure allowances

EMCa advised the AER on proposed expenditure requirements for electricity transmission and distribution businesses in Queensland, New South Wales, Victorian and South Australia, as part of the AER’s five-year revenue determination processes.  EMCa undertook this work in conjunction with our partner firm applying a mix of network business management, management engineering, asset management and regulatory economic disciplines to the reviews.

Singapore Energy Markets Authority (EMA) – Review of electricity network regulatory expenditure allowance

EMCa and associated firm advised the Singapore EMA (as regulator) on the 5-year capex budget that was proposed by SP Power Assets (SPPA).  SPPA is the transmission and distribution network provider for Singapore.  This work was undertaken through a Singaporean partner firm: Frost & Sullivan.

Singapore energy Markets Authority (EMA) – Gas conversion and retail competition

In association with associated firms, EMCa advised the Singapore EMA on economic and technical considerations in converting the current reformed gas (“town gas”) supply to natural gas.  We have also advised on a road map for enhancing competition in the gas retail sector in Singapore.

Smart grids / smart metering – Australian federal government, Victorian government and UK network service provider

EMCa was a major contributor to the federal government’s assessment of the economics of smart metering.  EMCa also advised the Victorian government on the evolving economics of its policy to mandate the introduction of smart metering, and advised a UK network service provider on smart metering policies under development in that country.

Western Australian Government – Network and retail expenditure reviews and financial forecasts

EMCa undertook a network expenditure review of Western Power (capex and opex) at the time immediately preceding the establishment of Electricity Networks Corporation (the current entity trading as Western Power) and the retail entity Synergy. This review was conducted for the WA Government and involved financial modelling of the projected revenues and expenditures, and long-term pro-forma future financial statements, which allowed the Government to establish balance sheet funding parameters for the new entities and to assess electricity retail pricing implications of the de-merger.

Network regulatory adviser to the NZ Commerce Commission

EMCa provided network regulatory economic advisory services to the New Zealand Commerce Commission over a period of four years. This work covered a range of issues addressed in regulatory network pricing determinations.  This included developing a regulated Information Disclosure Regime for the 29 electricity distribution networks, advising on matters relating to assessments of “excess returns” including the specification of WACC, allowance for tax, regulated asset base (RAB) roll-forward mechanisms and risk and incentive mechanisms in the regulatory framework.  This work also included advice on the extent to which the NZ gas networks had earned “excess returns” as input to consideration of enhancements to the regulatory regime.

Western Power – Applications and Queuing policy

In response to significant concerns with delays and costs in connecting to the Western Power network (particularly for new entrant generator connection applications) EMCa and associated firm developed a significantly revised process for managing connection applications.  This work involved significant stakeholder consultation, assistance with regulatory approval of the revised policy and then assistance with the Western Power change management project to implement the revised policy.

Australian Energy Market Commission (AEMC) – Review of network access arrangements in light of Climate Change Policy.

EMCa and associated firm reviewed network access, network augmentation and system operation issues affecting the connection and ongoing operation of renewable generators in Western Australia.

Philippines – Transmission pricing regulatory filing

EMCa provided network regulatory expertise to assist with the regulatory filing for the Philippines electricity transmission company (TRANSCO).

Prior experience – Various

Prior to establishing EMCa, in roles as a Partner in Ernst & Young and as a Vice President in Capgemini Ernst & Young, Paul Sell played a lead role in a number of major projects which included:

  • Functional design and implementation of informations systems and policies for the introduction of Full Retail Competition in the main Australian electricity market (NEM)
  • Introduction of the NEM wholesale electricity market in Australia
  • Corporatisation and privatisation of the electricity and gas sectors in Victoria, Australia
  • A foundation role in the development of electricity and gas transmission and distribution pricing regimes in Australia and New Zealand.  This included foundation work on the definition of network open access and regulatory regimes.
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