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
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