Tariff Study

A tariff study was conducted for electricity water and sewage in 2012 by Macro Consulting. You may download a copy of the report or the PowerPoint presentation.

The main objective of the study was to provide the electricity, water and sanitation sectors decision-makers with cost-recovery tariff levels and structures for each activity, as well as appropriate indexation and cost-adjustment mechanisms and related tools to allow transparent future adjustments.

To meet the needs of the sectors and allow an effective assessment of the tariffs, the study also covered additional issues, namely:

  • A diagnostic of the regulatory framework in which the tariffs will fit, with initial specific proposals for improvements in the regulation of the water and sanitation sector (currently, only the electricity business is regulated by the newly established Seychelles Energy Commission);
  • The definition of the tariff regime itself including proposals of options to provide incentives to ensure continuous efforts to improve efficiency (e.g. incentive-based regulation); tariff determination and tariff revision principles, rules and mechanisms; cost recognition principles and processes;
  • The development of methodologies and tools to allow for the assessment of power purchase agreements (and the application of such methodologies and tools to two real cases);
  • The development of regulatory information requirements (i.e. the backbones of a regulatory accounting system) to allow for the monitoring of the performance of the sectors, as well as the exchange and validation mechanisms of such information and the general of the information that will be needed for future adjustment in price and non-price regulation.