Vis Consultants

Development of a guide on regulatory treatment of depreciation accounting

VIS has been commissioned by NARUC (assignment funded by USAID) to develop a guide (primer) on the treatment of depreciation in the context of regulatory tariff setting. The primer will review and present different methods of estimating depreciation of utilities’ assets as well as of allocating, in a systematic and rational manner, the value of a depreciable asset over its life. The Primer will form the basis for a multiyear project by NARUC to create a tool kit designed for policymakers, regulators and utilities to encourage cost-based tariffs. In the framework of the assignment, VIS will conduct a Case Study of selected Sub-Saharan countries, on how alternative methodological approaches concerning regulatory treatment of depreciation can be evaluated and applied in practice, in a context that is relevant to the Primer’s primary beneficiaries.