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Banded rate of return regulation
| Глоссарий терминов коммунальных услуг |
Specifies a range of returns that a regulated company is allowed to earn before profit or loss sharing sets in. this approach provides greater incentives to the company to keep costs down than a system that establishes caps on returns, since costs tend to drift up if all savings are immediately passed on to customers.
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Immediately, английский
Немедленно; непосредственно
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Private sector investment, английский
Spending on capital goods by businesses and individual investors rather than by government.
Price cap financial model, английский
Some versions of price cap regulation do not focus on identifying an externally-identified x-factor, but base the price control on the revenues necessary to cover the operating costs and provide an appropriate return on investments during the control period. the net present value of the firm incorporates the investments required to meet service quality and expansion targets, as well as projected efficiencies (which can be related to an x-factor). the results of the cash flow model are used to determine the price control.
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