Search citation statements
Paper Sections
Citation Types
Year Published
Publication Types
Relationship
Authors
Journals
Objective: ANEEL, the Brazilian National Electric Energy Agency, regularly renews its tariff model to remunerate the electricity transmission service operators. This study focuses on the conceded rate of return of the operators’ regulatory capital. We aim to contribute to the methodological improvement of the regulator’s approach in future tariff reviews by focusing on issues concerning the calculation of this key figure.Method: We critically review ANEEL’s concept of the regulatory rate of return, stressing issues concerning the calculation of this key figure.Originality/Relevance: We are not aware of any research that analyzes ANEEL’s actual model for calculating the regulatory rate of return. In line with ANEEL’s search for support, we intend that our considerations will help improve the regulator’s approach and serve as stimuli to search for answers to open questions.Results: We revealed five aspects that give rise to deeper reflections. Our findings suggest that the concept for determining the regulatory rate of return could be adapted to better reflect the Brazilian financial market conditions.Theoretical/Methodological contributions: As a main finding, the sample of US electric energy companies involved in calculating the so-called ߠfactor should be reconsidered. Furthermore, to compute the weights of these companies to calculate the sample’s unleveraged ß, companies with missing data should be excluded. Moreover, instead of gathering the data for the WACC calculation from quite different periods, these periods should be aligned on a theoretical basis.
Objective: ANEEL, the Brazilian National Electric Energy Agency, regularly renews its tariff model to remunerate the electricity transmission service operators. This study focuses on the conceded rate of return of the operators’ regulatory capital. We aim to contribute to the methodological improvement of the regulator’s approach in future tariff reviews by focusing on issues concerning the calculation of this key figure.Method: We critically review ANEEL’s concept of the regulatory rate of return, stressing issues concerning the calculation of this key figure.Originality/Relevance: We are not aware of any research that analyzes ANEEL’s actual model for calculating the regulatory rate of return. In line with ANEEL’s search for support, we intend that our considerations will help improve the regulator’s approach and serve as stimuli to search for answers to open questions.Results: We revealed five aspects that give rise to deeper reflections. Our findings suggest that the concept for determining the regulatory rate of return could be adapted to better reflect the Brazilian financial market conditions.Theoretical/Methodological contributions: As a main finding, the sample of US electric energy companies involved in calculating the so-called ߠfactor should be reconsidered. Furthermore, to compute the weights of these companies to calculate the sample’s unleveraged ß, companies with missing data should be excluded. Moreover, instead of gathering the data for the WACC calculation from quite different periods, these periods should be aligned on a theoretical basis.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.