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Gas Tariff Design and Pricing

There are considerable training needs at all levels in the developing national gas markets.  We have therefore put together a programme of trainin

Corporate Training Programme

(Five or Ten Days)

Summary

There are considerable training needs at all levels in the developing national gas markets.  We have therefore put together a programme of training courses in the commercial, regulatory and technical aspects of natural gas, to help participants to drive forward the gas market business effectively and competitively.

This is a five-day certificated course on gas tariff design and pricing. This course is suitable for anyone wishing to learn about gas regulation and/or tariff design.

Course objectives

After completing this course, each student will have an understanding of economic gas regulation and basics of how to regulation the commercial activities of gas enterprises.

Who will benefit?

Government and parastatal officials involved in the regulation of energy or gas enterprises, company executives involved in regulated activities, and operational managers, all of whom deal with regulation or its effects in their daily operational roles.

Previous experience

No previous experience is needed.

Curriculum

1. Introduction to gas pricing 

2. Gas value chain

Production; LNG; Transportation; Distribution; Storage; Supply and trading; Components of the gas price

3. Types of gas pricing

Free market pricing (negotiated prices, minimum and maximum prices, alternative fuels pricing, netback pricing); Regulated tariffs (incentive pricing, cost plus pricing, benchmark regulation)

4. Gas pricing strategies

Gas pricing in a monopoly market; Gas pricing in a competitive market; Pricing gas transportation; Economic, allocative and productive efficiency

5. Tariff design principles

Cost of service tariff design (building blocks of tariff design, functionalisation, classification, allocation)

6. Types of final tariff

Postage, distance based, zonal, entry/exit, volume, other – backhaul, diameter; Billing determinant matrices

7. Cost allocation methodologies

Activity Based Costing; Other methodologies; Accounting standards; Tariff strategies around cost allocation; Long run cost versus average costs; Incremental versus rolled in tariffs

8. Case study and practical session

Case Study – tariff design for a growing market; Tariff design practical session

9. International comparisons

Comparison of international gas prices; LNG prices; Will world gas prices converge?; Comparison of international gas price regulation

Read the Terms and Conditions before booking.