Cost of Services Study, Pakistan

When:                  2004 to 2005

Client:                   Acres Management Consulting, Oakville, Ontario, Canada

Ultimate clients:     Inconsult, Lahore, Pakistan
                             Water and Power Development Authority (WAPDA), Pakistan

I was engaged as the primary expert in cost of service/ tariffs on this project conducted for (and financed by) WAPDA. The project basically entailed: (i) the derivation of the cost of electricity supply, by voltage level and by customer category, for each of eight distribution companies owned by WAPDA, as well as for the transmission company serving the country, using each of the Embedded and Long Run Marginal Cost (LRMC) methodologies and (ii) derivation of cost based tariffs for each distribution company.

Because of its iterative nature, the bulk of the quantitative work and model building was conducted by Inconsult personnel under my direction, with certain input from Acres. Specifically, I performed the following tasks:

• Visits to Lahore, Pakistan, to discuss the detailed methodology with Inconsult personnel.
• Interaction with Acres personnel to perform initial analyses for one distribution company and the transmission company, which was then replicated by Inconsult for the other seven distribution companies in Pakistan.
• Report preparation
• Presentation of the study results to WAPDA senior management.