Regulatory strategy and negotiation support for a TSO
Regulatory strategy and negotiation support for a TSO
Context & Objectives

Context:

  • A European Transmission System Operator preparing its discussions with the NRA for the forthcoming regulatory period
  • Major on-going changes of the market design and business environment: e.g. decrease of long-term capacity bookings and first application of the European Tariff Network Code

Objective:

  • Build the negotiation strategy and back-up options of the TSO for its discussion rounds with the NRA
  • Scope of work: regulatory framework and cost-recovery mechanisms, tariff structure and tariff levels at cross-border points, incentive schemes and inter-operator financial flows

Outcome
  • Regulatory framework in line with the TSO’s expectations
  • Proposal of an incentive scheme finally adopted by the NRA
  • Avoidance of non-acceptable options from the TSO’s point of view

Our approach

In-depth analysis of the regulatory framework potential evolutions

  • Quantitative / qualitative analysis of each specific element of the regulatory framework
  • Targeted benchmarks: e.g. incentive schemes put in place in Europe, entry/exit tariff levels on main transit routes, pipe gas vs LNG relative competitiveness
  • Advanced modelling of cost recovery options as resulting from the Tariff Network Code
  • Close interactions and teamwork with the TSO regulatory team

Definition of the TSO’s negotiation strategy

  • Definition of detailed objectives and back-up options
  • Preparation of solid arguments, e.g. slides and/or position papers where appropriate
  • Support to detailed written answer to the NRA’s public consultations
Our experts
No items found.
    OTHER CASE-STUDIES