Regulatory Accounting and Finance
Prof. D. V. Ramana |
| For WhomStudents interested in pursuing career with infrastructure consultancy firms, regulatory bodies, and power finance corporations. |
| Teaching Arrangement 3 Credit Course. |
| PrerequisitesUnderstanding of Financial Statements, Costing, and Financial Management |
| Aim of the courseThe course will make an effort to critically examine the principles and methods of regulation with a focus on the power sector regulations. The aim of the course is to provide an in-depth understanding of various financial and accounting issues affecting the pricing of power. |
Pre-requisite Go through the website of the following
· Ministry of Energy: http://powermin.nic.in/
· CERC: www.cerc.com/
· OERC: www.orierc.org/
· Other Electricity Regulatory Commissions |
| Evaluation PackageEvaluation will be done through: Term Papers, Preparing Case Studies, End Term Examination |
Course Content
a) Understanding Regulation
b) Understanding Utility Regulation
c) Types of regulation
o Cost Based Regulations
o Performance Based Regulations
o Price Based Regulations
d) Financial and Accounting issues
o Capital Structure: Actual and Normative Debt Equity Ratio
o Return on equity: Actual and Normative Return on Equity
o Cost of capital
o Regulatory Assets
o Foreign Exchange Currency Gains and Losses
o Capital expenditure related items: Fixed assets, depreciation, capitalization, impairment, revaluation, Leasing,
e) Corporatisation, Privatization and Performance of Power Utilities
f) Pricing of Power
o Generation Tariff
o Transmission Tariff
o Distribution Tariff
o Wheeling Charges
o Availability Based Tariff
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