The following information was submitted:
Transactions: WSEAS TRANSACTIONS ON POWER SYSTEMS
Transactions ID Number: 29-833
Full Name: Tomislav Gelo
Position: Doctor (Researcher)
Age: ON
Sex: Male
Address: Trg J. F. Kennedyja 6
Country: CROATIA (HRVATSKA)
Tel: 2383134
Tel prefix: 003851
Fax: 0038512335633
E-mail address: tgelo@efzg.hr
Other E-mails:
Title of the Paper: Possible Impact of Global Financial Crisis on Prices in Croatian Electricity Sector
Authors as they appear in the Paper: Ivona Štritof, Tomislav Gelo, Slavko Krajcar
Email addresses of all the authors: istritof@hera.hr, tgelo@efzg.hr, slavko.krajcar@fer.hr
Number of paper pages: 10
Abstract: A regulatory method chosen for setting allowed revenue in transmission and distribution of electricity in Croatia is a traditional Rate of Return method. The main feature and, at the same time, the main drawback of this method is that a price is in a direct relationship with the costs of regulated company. A parameter used in this method, which does not solely depend on the costs and management decisions, is the rate of return. The rate of return is usually calculated using the weighted average cost of capital formula (WACC). The WACC reflects two types of finance used to fund investments, debt and equity respectively. The cost of equity is calculated using the Capital Asset Pricing Model (CAPM). This Paper provides the WACC calculation based on the estimates of particular parameters which could be applied in the case of electricity transmission and distribution in Croatia. The estimates are given for two scenarios, for the period prior to and immediately after the!
beginning of domestic crisis (reflection of the global financial crisis) and secondly for the period throughout the domestic crisis. Thus, reflecting possible impacts of financial crisis on national and global level on cost of capital in transmission and distribution of electricity.
Keywords: Distribution, Transmission, Rate of return, WACC, CAPM, tariff system
EXTENSION of the file: .pdf
Special (Invited) Session: Estimation of weighted average cost of capital in transmission and distribution: Case of Croatia
Organizer of the Session: 626-222
How Did you learn about congress: szutobradic@hera.hr
IP ADDRESS: 161.53.52.8
