International Energy Solutions Limited

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International Energy Solutions Limited
Economic and Management Consulting  for the
Energy Sector Service Areas
website www.iesl-uk.com email
   information_at_iesl-uk.com
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• IESL Service Areas
• Electricity Reform and Restructuring
• Reform of electricity industries is now a
  world-wide phenomenon. Substantial experience has
  been gained of how particular structures and
  mechanisms work in different circumstances, and
  of what problems can arise and how they can be
  avoided. In countries which reformed first,
  further reform is now taking place to capture the
  additional benefits that are achievable. IESL
  staff have been heavily involved in the reform
  and restructuring process since the late 1980s,
  in both management and advisory capacities, and
  in both the design and the operation of markets.
  They have first hand experience of the practical
  issues that arise in restructured electricity
  markets.
• Our services cover
• Reform strategies for national and regional
  electricity markets
• The unbundling of electricity industries
• The design and implementation of electricity
  trading systems
• The development of technical and commercial
  rules for electricity markets
• Transmission charging and access
• Privatisation strategies and implementation
• Our experience includes
• Korea - technical advice on the market
  restructuring programme, including market design,
  the technical framework and pool rules
• Jordan - development of electricity industry
  reform proposals in advance of privatisation

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• IESL Service Areas
• Electricity Markets
• Once electricity markets have been established,
  companies need to understand how to succeed in
  them, and regulators need to understand
• how the public interest can be protected in a
  market framework - and both need to appreciate
  how requirements will change as the market
• develops. Success requires a sound strategy,
  based on an appreciation of how the market will
  operate, of the role and significance of the
• various market elements, and of where the
  opportunities, threats and constraints lie. IESL
  staff have been directly involved, as managers
• and advisers, in the design and operation of
  electricity markets for more than a decade.
• Our services cover
• Analysis and forecasting of market dynamics
• Electricity contracts
• Trading and risk management
• Linkages between electricity and gas markets
• Market systems
• System operation issues

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• IESL Service Areas
• Electricity Markets
• Our experience includes
• Netherlands - risk management strategy for an
  electricity trading company
• Middle East - drafting of contracts between
  Israeli and Palestinian electricity organisations
  
• Bosnia and Herzegovina - establishment of an
  independent system operator
• Pakistan - development of proposals for market
  arrangements on behalf of the regulatory agency
  NEPRA
• UK - advice to a major industrial group on the
  implications of electricity trading reform
• UK - testing of a performance assurance
  reporting system for the Electricity Pool
• UK - evaluation of proposed new trading
  arrangements on behalf of the Electricity Pool
  and National Grid Company
• UK - formulation of specifications for new
  generation scheduling software, and commercial
  evaluation of the software
• Europe (UK, Scandinavia, Germany) - entry
  strategy for a commodity trader seeking to
  diversify into energy trading

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• IESL Service Areas
• Retail markets and customer issues
• Whilst the initial focus of energy reform has
  generally been on wholesale markets, increasingly
  attention is focusing on introducing
• competition into retail markets (i.e.
  competition to supply final consumers). Even
  where this is not a priority, improving the
  various
• aspects of relationships with customers is often
  important to maintain the financial viability of
  companies.
• Our services cover
• The implementation and operation of retail
  markets
• Management of the interface with customers
• Customer standards
• Customer retention strategies and competitor
  analysis
• Our experience includes
• Netherlands - risk management strategy for an
  electricity trading company in preparation for
  expansion of retail competition
• Ireland - review of ESB's requirements for a
  pricing and billing system to meet the needs of
  new trading arrangements

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• IESL Service Areas
• Regulation
• Effective regulation is essential for the
  successful working of electricity and gas
  markets, to ensure that company efficiency is
• maximised, that consumers gain from the improved
  efficiency, and that investors are attracted to
  the industry. A sound regulatory
• framework needs to be established at the outset,
  one that facilitates the change in regulatory
  role that should accompany the
• development of the market and strong
  capabilities need to be put in place within the
  regulatory agency. Equally, companies
• operating in the market need to be adept at
  handling regulatory issues. IESL staff have a
  strong track record in designing regulatory
• frameworks, supporting regulatory agencies, and
  handling regulatory issues on behalf of energy
  companies.
• Our services cover
• Regulatory law and economics, and competition
  policy
• Licensing
• Analysis of regulatory issues (from the
  perspectives of both regulatory agency and
  regulated company)
• Price control reviews
• Regulatory service targets - definition and
  negotiation
• Regulatory agency capability development and
  procedures

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• IESL Service Areas
• Regulation
• Our experience includes
• Central and Eastern Europe - training of
  government ministers and senior officials
  responsible for energy regulation
• UK - regulatory strategy, analysis and
  management of regulatory issues, and negotiation
  of licence changes, on behalf of
• generation  and distribution/supply companies
• UK - development of licences, codes and
  agreements
• UK and Canada - devising and implementing
  commercially-based regulatory processes in
  regulated companies
• Singapore - training of regulatory and regulated
  company staff in the dynamics and nature of the
  regulatory relationship

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• IESL Service Areas
• Investment and private sector participation
• Whilst the private sector has long been involved
  in the electricity and gas industries in a number
  of countries, in recent years there have been
  major changes as countries world-wide have sought
  to privatise electricity and gas companies and
  introduce private sector participation in other
  ways. These changes provide challenges for both
  governments, who need to ensure that
  privatisation is beneficial for the public, and
  investors, who need to ensure they are securing
  value.
• Our services cover
• Privatisation strategy and implementation
• Other forms of private sector participation,
  such as concessions
• Development and financing of independent power
  (IPP) projects - including the development
  process, contractual structures, and 
• financing options
• Assessment of investment opportunities
• Project evaluation and investment appraisal 
• Advice on business issues in mergers and
  de-mergers
• Our experience includes
• Jordan - preparation of electricity companies
  for privatisation, including advising on measures
  to achieve financial viability, further

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• IESL Service Areas
• Investment and private sector participation
• Our experience includes
• Development of strategy for an energy company
  seeking to enter the international power market
• Advice and support on the development and
  financing of international power projects
• UK - advice on mergers and acquisitions in the
  energy retail sector, including post-acquisition
  planning
• UK - advice on the financial and business issues
  in a de-merger in the water sector

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• IESL Service Areas
• Strategy and management
• Management efficiency is essential for both
  private and public sector companies.
  Prerequisites for this are robust strategies and
• plans, organisational structures and management
  systems that will enable strategies and plans to
  be implemented, and effective
• business processes.
• Our services cover
• Business strategy and planning
• Organisational development, including the
  formation of new companies
• Commercialisation and the management of revenue
• Business process improvement
• Distribution and supply benchmarking
• Our experience includes
• Bosnia and Herzegovina - development of
  organisational structure and HR policies for a
  new independent system operator

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• IESL Service Areas
• Tariffs and pricing
• Getting prices right throughout the production
  and supply chain is crucially important in both
  competitive and regulated markets. The level
• and structure of prices is key to the financial
  viability and the competitive position of
  companies, to promoting efficiency in operation
  and
• investment throughout the industry, and to
  ensuring that consumers benefit from efficiency
  improvements.
• Our services cover
• Market modelling and price forecasts
• Cost of service studies
• Tariff structuring
• Social issues
• Our experience includes
• Kyrgyzstan - assessment of electricity tariff
  requirements to support privatisation
• UK - specification, development and
  implementation of a tariff pricing system for an
  electricity distribution/supply company

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• IESL Service Areas
• Planning and forecasting
• System planning has long been an important
  activity in centralised systems it is key to
  ensuring reliability, and also has huge
  implications
• for future cost levels (since poor decisions can
  lock in high costs). In market systems, many of
  the investment decisions are taken by private
  companies on the basis of market signals, but
  those companies need planning assumptions, not
  only for investment decisions but also to
  determine the optimal management of their assets.
  Furthermore, network expansion planning remains a
  central role in liberalised
• systems.
• Our services cover
• Demand forecasting
• Least cost expansion planning
• Asset management strategies in liberalised
  markets
• Statistical modelling and forecasting
• Extracting value, business information and
  intelligence from energy market and settlements
  data
• Data validation, consistency and monitoring to
  mitigate financial and operational risk
• Our experience includes

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• IESL Service Areas
• Energy policy and legislation
• Whilst in liberalised energy markets the role of
  governments in the operation of the energy
  industries is much reduced, governments
• retain a proper role in regard to broad energy
  policy issues such as security of supply and the
  environmental implications of industry
• operations. Governments also play a key role in
  the reform process itself, as it develops, and
  are responsible for providing and
• amending the necessary legislative framework.
• Our services cover
• National energy strategies
• Energy policy analysis and evaluation
• Development of legislative proposals
• EU accession requirements
• Public affairs and communications
• Our experience includes

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• IESL Service Areas
• Training and capability development
• Private sector companies and public organisations
  alike need to develop their capabilities to the
  full if they are to perform well and
• compete. This can be achieved partly through
  staff training, which may range from workshops on
  specific topics to extended courses. Frequently,
  however, it is necessary to concentrate on means
  of strengthening the organisation as a whole
  rather than specific individuals.
• Our services cover
• Courses and workshops
• Bespoke training
• Institutional strengthening
• Our experience includes
• EU Mediterranean Partner countries - training
  for senior government and regulatory officials on
  electricity sector reform
• Pakistan - capability building for NEPRA, the
  electricity regulation agency
• Central and Eastern Europe - training of
  government ministers and senior officials
  responsible for energy regulation
• UK - training on energy for a major management
  consultancy

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Contact Us Please contact us in writing and by
email International Energy Solutions Ltd 7
Cardiff Road London W7 2BW United Kingdom   Phone
(International)   44 (0)20 85 79 67 23
  Phone  (UK)                           020 85
79 67 23   Fax (International)        44 (0)20
83 57 18 77   Fax (UK)                       
        020 83 57 18 77 Email to    
information_at_iesl-uk.com