Velez-Pareja, Ignacio; Ibragimov, Rauf; Tham, Joseph; … - MASTER CONSULTORES - 2007
In this teaching note, we discuss the basic principles for tariff setting. Tariff setting is very important for regulated industries, such as water and power. The tariff should provide an appropriate risk-adjusted return to the investor. If the tariff were too low, then the investors would not...