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SHORT LEARNING PROGRAMME

Financial Analysis for Competition and Economic Regulation

27 - 29 November 2017, 1st Floor 6 Sturdee Avenue, Rosebank

The Centre for Competition, Regulation and Economic Development (CCRED) at the University of Johannesburg is pleased to offer the Short Learning Programme (SLP) in Financial Analysis for Economic Regulation and Competition.

Accounting and finance are key areas of work at economic regulators and play a critical role in the determination of tariffs and the assessment of firm conduct. Different costing methodologies can result in very different tariffs for regulated entities or different evaluations of a firm’s conduct. In capital intensive industries, capital investments can account for the bulk of a regulated entity’s costs, and therefore the costs of capital need to be carefully weighed when arriving at a final tariff or evaluating a firm’s conduct.

Providing a strong theoretical and practical foundation for these key issues, this SLP is targeted at staff employed at competition authorities, economic regulators, departments within government and regulated enterprises, private practitioners and students.

The SLP will be led by Thabiso Madiba, an accounting professional and academic at the University of Johannesburg and Dr Stephen Labson, an international expert on regulation and finance and a Senior Research Fellow at CCRED, will provide specialist training on cost of capital and the role of finance in setting regulated tariffs and charges.

Approach

The course will be taught by means of lectures on theory and practical case studies on actual regulator decisions (internationally and from South Africa), where possible, in order for course participants to develop a working knowledge of regulatory costing and finance principles. The lectures will be complemented by in-depth case exercises involving analysis of data and fact patterns by different groups which will present findings in feedback sessions.

• The following topics and themes will be covered in the programme:
• The application of financial and accounting principles in determination of regulated tariffs
• Cost of capital (including case studies drawing from international experience);
• Measures of costs (including long run average incremental cost (and relevant mark-up methodologies), fully allocated cost, stand-alone cost, and variable/marginal cost) appropriate to the regulated entity and policy framework;
• Costing principles, including historical cost accounting, current cost accounting (including operating capital maintenance and financial capital maintenance) and long run incremental cost; and
•  Financial analysis of regulated entities. 

Previous participants

Previous participants came from various institutions including National Energy Regulator of South Africa, Malawi Energy Regulatory Authority, Energy Regulation Board Zambia, Energy and Water Utilities Regulatory Authority Tanzania, Surface and Marine Transport Regulatory Authority Tanzania, Petroleum Upstream Regulatory Authority Tanzania, Zimbabwe Energy Regulatory Authority, Competition and Consumer Protection Commission Zambia, Competition Authority of Kenya, Competition and Tariff Commission Zimbabwe, National Treasury, Econex, DNA Economics, Telkom, Transnet, KPMG South Africa, Multichoice, Chihambakwe, Mutizwa and Partners. Comments included:

“The course was insightful and enlightening especially the Eskom case study.”

“It is very good for non-financial guys!”

“An insightful programme, clear and understandable presentations.”

“Excellent course. The lecturer explained concepts well with good examples and engaging case studies!”

Registration

To register for the course, kindly complete the attached booking form. Complete the booking form and email it to Farisai Chin’anga on farisaic@uj.ac.za. For further information also contact Farisai Chin’anga on farisaic@uj.ac.za

Fees

The course cost is R12 000 per person and R9 000 per person for regulators and public entities registering two or more individuals.This rate includes all the course material, lunch and refreshments only.