Preparing a Power Sector Financial Recovery Plan

KEY INFORMATION

Budget : 1,140,000 USD
Country : Azerbaijan
Sector : Power and Energy
Dates : 2017 -
2019
Partner : DNV GL KEMA (Germany)
Funding : ADB

KEY OBJECTIVES

  • Review sector organization, institutions, and legal and regulatory framework
  • Examine productivity and efficiency of generation, transmission and distribution
  • Review development plan and quantify investment commitments
  • Conduct a cost of service supply study for key categories of consumers
  • Review current tariff method and compare to international standards
  • Examine data used for pricing and validate against the government policy
  • Draft a new tariff policy and methodology and implementation action plan
  • Prepare financial projections for 10 years, including OPEX and CAPEX
  • Prepare a financial recovery plan, including a tariff increase trajectory
  • Amend regulatory framework to enable introduction of the new tariff structure
  • Develop a programme for public information campaign to support tariff reforms
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