Training Program on Regulating Utility Markets, Finances, Prices,
October 15 - 26, 2012
From October 15 through October 26 the Public Utility Reseaarch Center at the University of Florida conducted training for the Agencia Reguladora de Saneamento e Energia do Estado de São Paulo (ARSESP) in Sao Paulo, Brazil. Sixty five industry professionals invited by the agency participated in sessions and group exercises on various topics important to the regulation of utilities.
Topics covered on the first day of the training included the basis for regulation, where we discussed the conditions that make regulation necessary. The next group of topics addressed the language of accounting and the principles that are important to regulation. We then explored methods of price and revenue cap regulation, and the different incentives that these tools provide relative to rate of return regulation. The sessions then turned to the topic of conducting price reviews. We first discussed the importance of the price review process and the implications of that process on the legitimacy of the pricing decision.
The second week began with discussions on the Brazilian context for regulation and the concession system. The topic then turned to benchmarking and other methods of evaluating performance. We discussed methods for evaluating and improving sector performance, and the advantages and disadvantages of various benchmarking tools. Once the appropriate level of cost recovery has been determined, the next question to be addressed is how those costs will be recovered from consumers.