Financial Analysis

As downward regulatory pressure erodes traditional sources of earnings and makes recovery of CapEx less certain, the hunt is on for new sources of earnings growth. Whether it be from capturing the synergies of an acquisition or diversifying into unregulated activities, careful and thorough analysis is a must.

Utility Consultants can provide financial analysis in the following areas....

Cost-benefit analysis

- Modeling of costs and benefits to derive traditional parameters such as NPV, IRR and Payback Period.

- Identifying key value drivers so that appropriate sensitivity scenarios are developed.

- Quantifying benefits derived from avoiding events such as electricity supply interuptions.

- Quantifying probabalistic benefits.


- Valuing utility businesses using earnings multiples.

- Valuing utility businesses using tradiational NPV approaches.

Tariff analysis

- Analysis of fixed and variable tariffs.

- Estimation of tariff components.

- Comparison of acutal and optimum tariffs.