Our Projects

NCL has strong advisory services capability and has achieved significant success in numerous projects. NCL’s business provides quality advice and encompasses the services of engineering and commercial analysis. We have a proven track record in the power industry and have extensive experience in jurisdictions including New Zealand, Australia, Asia and Africa. NCL’s most recent major projects are described below:

Technical Advisor for the Review of Western Power’s Access Arrangement for the South West Interconnected Network (SWIN) (2011 – 2012)
Western Power’s SWIN is regulated under the Electricity Networks Access Code 2004 (Access Code). The Access Code outlines a framework for the preparation, approval and review of access arrangements. Proposed access arrangements detail the terms and conditions, including prices, which apply to third parties seeking the use of regulated electricity networks within Western Australia. The Economic Regulation Authority sought the services of consultants to provide technical advice in relation to the capital and operating expenditure evaluation during the review of Western Power’s access arrangement. Geoff Brown and Associates undertook the review with the assistance of NCL.

Regulatory Strategy Training for Private Distribution Utilities in the Philippines (2011)
The main objective of the training is to inform utilities on the different methods to improve efficiency. The training includes topics such as determining prudent and cost efficient capital and operational expenditure work programs, managing expenditure during the current regulatory period, and the various ways to improve the process of maintaining assets.

Review of the Independent Engineers’ Reports on the Asset Adjustment Process of Gas Pipeline Business in New Zealand (2011)
Gas Pipeline Businesses (GPBs) as suppliers of gas pipeline services are subject to default/customised price-quality regulation of which a fundamental component is the setting of starting prices for each regulated supplier. The project entailed undertaking the review for the Commerce Commission and providing advice on the engineers’ reports received from the GPBs. The engineers’ reports detail the proposed adjustments to the initial regulatory asset base valuation. Gas pipeline services include both gas transmission and distribution and differences between these services exist which had to be taken into account during the review.

Review of the Independent Engineers’ Reports on the Asset Adjustment Process of Electricity Distribution Businesses in New Zealand (2011)
The asset adjustments modify the way the valuation approaches were applied when the most recent Optimised Deprival Valuation were undertaken for the Electricity Distribution Businesses in New Zealand. The project involved undertaking the review and providing advice to the Commerce Commission on the engineering reports submitted to support the asset adjustments.

Review of Transpower’s (New Zealand’s Transmission Operator) Operational Expenditure and Minor Capital Expenditure Proposal for the final three years of the first Regulatory Control Period (2011)
Following the Minister’s decision on the application of individual price-quality regulation to Transpower, the Commerce Commission issued a final decision as to the form that the price-quality regulation will take. The Expenditure Review is part of the process of implementing such regulation and Geoff Brown & Associates Limited undertook the review with the assistance of NCL.

Development of Guidelines for Transmission Planning in the Philippines (2011 – ongoing)
NCL was contracted to develop the transmission planning guidelines for the National Grid Corporation of the Philippines (Philippines’ Transmission Operator). The guideline focuses not only on efficient in-depth engineering planning for the short and long-term, but also planning in order to address congestion in the electricity spot market. The guidelines will be issued by the Commission as part of the Performance-Based Regulation scheme for the Transmission Operator and has taken into account the views of key stakeholders in the power industry keeping in mind the objective of ensuring the quality, reliability, security and affordability of electricity transmission services.

Expenditure Review of Six Private Distribution Utilities entering Performance-Based Regulation in the Philippines (2010)
Review of the historic and forecast capital expenditure submitted by the 4th Entry Point of Private Distribution Utilities. The review forms part of the rate setting process under Performance-Based Regulation for the Second Regulatory Period. Services also included mentoring the Commission in their review of the operating and maintenance expenditure and taxes, levies and duties expenditure. These expenditures were inputs to the determination of the revenue to which the Distribution Utilities are entitled on which the price caps will be based.

Review of the Optimised Depreciated Replacement Cost Valuation of the Manila Electric Company, Cagayan Electric Power and Light Company, Inc., and Dagupan Electric Corporation (2010 – 2011)
Review of the valuation of the regulatory asset base of the three Private Distribution Utilities (including the largest distribution utility in the Philippines, Manila Electric Company with almost 5 million customers) entering Performance-Based Regulation at the 1st Entry Point for the Third Regulatory Period, using an optimised depreciated replacement cost methodology. The return on the value of the regulatory asset base is one of the main building blocks used to determine the revenue to which a regulated entity is entitled when determining its price-cap.

Expenditure Review of the National Grid Corporation of the Philippines (Philippines’ Transmission Operator) (2010)
Review of the actual, budgeted and forecast expenditure of the National Grid Corporation of the Philippines under Performance-Based Regulation. The project also included the assessment of the efficiency and effectiveness of the utility’s transmission development plan; its effectiveness in supporting the electricity market; and minimizing the price paid by consumers for the generation and delivery of electricity. The outcome of the review was used to determine the maximum allowed revenue that the utility will be entitled to receive from the provision of regulated transmission services for each year of the Third Regulatory Period.

Development of the Asset Valuation Handbook for the Energy Regulatory Commission (2009 – 2010)
The optimised depreciated replacement cost valuation of a utility is a critical component of the regulatory reset process applied to Private Distribution Utilities in the Philippines. In support of this process, the Commission identified the need to develop a comprehensive regulatory asset base valuation handbook which would provide the necessary directions for conducting the valuations in order to ensure that there will be a high degree of consistency not only in the method applied but also in the replacement costs of assets.