Expression Of Interest Are Invited For Angola Cost Of Electricity Service Study

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Expression Of Interest Are Invited For Angola Cost Of Electricity Service Study The World Bank Group Wbg With Funding From The Energy Sector Management Assistance Program Esmap Is Seeking To Hire A Specialized Consulting Firm To Prepare I A Cost Of Service Study To Determine A Methodology For Calculating The Annual Revenue Requirement Arr For The Angolan Power Utilities I E Prodel Rnt And Ende That Would Allow Them To Efficiently Operate Ii Identify A Financial Model For The Electricity Sector Which Will Provide A Framework To Anchor Financial Planning At The Utility Level And Iii Recommend Improvements To The Existing Tariff Structure For Electricity Service Provided By Ende To Its Customers The Scope Of Work Will Include The Following Task 1 Determination Of Arrs Procedures And Formulae For Periodic Adjustment This Task Will Be Performed For Each Of The Power Utilities To Assess Their Respective Cost Of Service And The Needed Adjustments Taking Into Consideration Service Expansion Plans And Appropriate Assumptions Concerning Future Generation Fuel Mix And Fuel Prices Task 2 Financial Model For The Electricity Sector Based On The Previous Results The Consultant Will Provide A Financial Model For The Sector Which Will Allow For A Sound Financial Planning At The Utility Level Reflecting I The Identified Arrs Ii Indebtedness Capacity And Financing Instruments Options And Iii Financial Ratios Typical For The Industry For Each Of The Power Utilities The Financial Model Will Be Designed So As To Allow To Capture Alternative Scenarios Of Investment Demand Generation Costs Transmission And Distribution T D Costs Commitments Under Power Purchase Agreements Or Other Contracts And Variables Task 3 Recommendations To Improve The Existing Tariff Structure And Its Periodical Adjustments For Electricity Service Provided By Ende To Its Customers The Consultant Will Review The Existing Tariff Structure And Propose Amendments To Make It Simpler Provide Consumers With Right Signals On Total Costs Of Efficient Service Provision And Promote Rational Electricity Consumption Options To Be Analyzed Comprise Among Others I Binomial Time Of Use Tou Tariffs With Separate Energy And Demand Charges Ii Tariff Differentiation Per Voltage Level Iii Seasonal Tariffs The Identified Options Shall Take Into Account Economic Efficiency Financial Viability And Social Objectives In Particular They Should Allow For Socially Sensitive Rates That Include Cross Subsidy Towards Economically Weak Consumer Categories And Cost Reflective Rates For Consumers With Ability To Pay Identified Based On Consumption Histograms Task 4 Strategy For The Transition Period The Consultant Will Design A Strategy Glide Path To Move Progressively From Current Situation To The Steady State Condition In Which A Fully Cost Recovery Tariff Structure Is Enforced The Duration Of The Transition Period And The Progressive Adjustments To Converge To The Steady State Condition Will Be Determined Considering Political And Social Acceptability Thus The Strategy Will Define Formulae For Adjusting The Different Rates Under The Tariff Structure With Adequate Progression The Time Schedule For Effective Application Of The Revised Tariff Regime And Modalities For Communication Qualification Criteria 1 Provide Information Showing That They Are Qualified In The Field Of The Assignment 2 Provide Information On The Qualifications Of Key Staff 3 Provide Information On Their Core Business And Years In Business MandatoryShortlisted Consultants Will Be Invited To Respond To A Request For Proposal Contract Awards Will Be Made In Accordance With The World Bank Group Procurement Policies And Procedures

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