An introduction to financial and economic modeling for utility regulators

The most effective regulators in developing countriesare following remarkably similar approaches. The main common element across"best practice"countries is the use of relatively simple quantitative models of operators'behavior and constraints to measure the impact of regulatory decisions on some key financial and economic indicators of concern to the operators, the users, and the government. The authors provide an introduction to the design and use of these models. They draw on lessons from international experience in industrial and developing countries in ordinary or extraordinary revisions and in the context of contract renegotiations. Simplifying somewhat, these models force regulators to recognize that, in the long run, private operators need to at least cover their opportunity cost of capital, including the various types of risks specific to the country, the sector, or the projects with which they are involved. Because these variables change over time, scheduled revisions are needed to allow for adjustments in the key determinants of the rate of return of the operator. These revisions are a recognition of the fact that all these determinants-tariffs, subsidies, quality, investments, and other service obligations-are interrelated and jointly determine the rate of return. At every revision, the rules of the game for the regulator are exactly the same: to figure out the changes in the cost of capital and to adjust the variables driving the rate of return to ensure that it continues to be consistent with the cost of capital. If they can draw on reasonable data, these models do everything any financial model would do for the day-to-day management of a company but take a longer term view and include an explicit identification of the key regulatory instruments. They can monitor the consistency between cash flow generated by the business on the one hand and debt service and operational expense needs on the other to address the main concerns of the operators. They can also account for a large number of key policy factors including access and affordability concerns for various types of consumers. They generally account for the sensitivity of operators and users to various regulatory design options.Payment Systems&Infrastructure,Economic Theory&Research,Decentralization,Environmental Economics&Policies,Enterprise Development&Reform,Public Sector Economics&Finance,Environmental Economics&Policies,Economic Theory&Research,Banks&Banking Reform,Municipal Financial Management

Extraction of wood compounds by use of subcritical fluids

A study of the extraction of oak wood compounds with subcritical water-ethanol mixtures as extractant, with an ethanol content between 0-60%, is reported. Identification and characterisation of the extracted compounds have been made by spectrophotometry and gas chromatography with either flame ionisation or mass detectors. Extraction was performed statically manner by use of a single cycle or repeated cycles. All variables affecting the extraction process were studied and optimised. Extraction time and temperature are 60 min and 200ºC, respectively. Comparison of the extract thus obtained with commercial extracts showed the former to be rich in compounds characteristic of the commercial extracts. The method enables manipulation of the extract composition by changing the temperature and water/ethanol ratio used. It is faster than the traditional procedures for obtaining wood extracts

Two-parameter determination in vinegar by a flow injection-pervaporation system

A flow-injection method (FI) for the sequential determination of ethanol and acetic acid in vinegar is reported. The determination of ethanol is based on the oxidation of the pervaporated ethanol by Cr2O7K2. The acetic acid is determined by an acid-base reaction with Thymol Blue as the indicator. Both reactions are monitored photometrically at 600 nm using a single detector. Optimisation studies and assessment of the sequential FI method are also reported. The linear determination range is between 0-12 % (v/v) for ethanol and 0-10 % (grams of acetic acid in 100 ml) for acetic acid. The sample throughput of the sequential manifold is 7 per hour. The new method has been applied to vinegar samples and the results obtained are in excellent agreement with those from the reference methods used in Spain

Semiautomatic flow-injection method for the determination of volatile acidity in wines

A flow-injection (FI) method based on analytical pervaporation was assessed for its routine use in the determination of volatile acidity in winery laboratories. The new method was compared with both the official method and the Mathieu method, which is most often used in Spanish wineries, by testing 30 different wines, including young and aged, and sweet and dry wines from Montilla-Moriles appellation d´origine. The robustness of the new method was established and then all three methods were studied in terms of range of linearity and regression of the calibration curve, repeatability, reproducibility, sensitivity, detection and quantification limits (LOD and LQ, respectively) and time of analysis. The FI method surpasses the Mathieu method in reproducibility and both the Mathieu and official methods in LOD and LQ and sensitivity; it also requires less personnel involvement and shorter analysis time. The statistical criteria established by the “Office International de la Vigne et du Vin” were applied to the data and the results obtained indicated that the differences between the analytical parameters of the 3 methods are not significant and can be applied indistinctly. The correlation of the methods was studied by taking them 2 by 2, and the corresponding equations, coefficients and deviations confirmed the statistical results. Thus, the new method can be used in winery laboratories with clear advantages over its 2 counterparts (the routine and official methods)

Sequential Spectrophotometric determination of methanol and iron in vinegar by a flow injection-pervaporation method

An easily automatable sequential flow-injection-pervaporation method is proposed for the photometric determination of methanol and iron in vinegar. The method is based on separation of the methanol from the sample matrix by pervaporation followed by its oxidation to formaldehyde with permanganate, decolouration of the latter with S2O5-2 and subsequent reaction of formaldehyde with p-rosaniline to yield a violet reaction product with maximum absorption at 567 nm. Iron is determined by an existing method based on reaction with thiocyanate in acidic medium and monitoring at 508 nm. After optimisation by either the univariate or multivariate approaches, as required, the linear range was established for methanol (4-1000 mg L-1) and iron (0.18-20 mg L-1); The proposed method was then compared with reference methods for methanol and iron in terms of repeatability (2.452 mg L-1 and 0.245 mg L-1, respectively), reproducibility (4.435 mg L-1 and 0.356 mg L-1, respectively), detection limit (LOD=82 and 0.234 mg L-1, respectively) and traceability. The throughput was nine samples per hour

Method for the simultaneous determination of total polyphenol and anthocyan indexes in red wines using a flow injection approach

A simultaneous and fast method for the determination of total polyphenol index (t.p.i.) and total anthocyan index (t.a.i.) has been developed by a flow injection approach and a diode array spectrophotometer for monitoring at 280 nm and 520 nm, respectively. Linear ranges were obtained from 20 to 70 index units and from 20 to 500 mg l-1 for t.p.i. and t.a.i., respectively. The results provided by the proposed method agree with those obtained using the polyphenol index at 280 nm and the Ribereau-Gayon method for the determination of total anthocyans. The sample throughput was 25-30 samples per hour. Analytical features such as repeatability, reproducibility and detection and quantification limits as well as the results of a robustness study based on the Steiner-Younden procedure are also given

Determination of ethanol in beverages by flow injection, pervaporation and density measurements

A fast, clean and easy to automate flow injection-pervaporation method for the determination of ethanol in different beverages using density measurements is proposed. The method is based on separation of the ethanol from the sample using a pervaporation module, thus obtaining in the acceptor chamber of the pervaporator a water-alcohol mixture, the density of which is measured. After optimisation by either the univariate or multivariate approach as required, a linear range between 0-40% was established. Then, the assessment of the method versus a reference one was studied in terms of repeatability (0.12% v/v), reproducibility (0.32% v/v), detection limit (0.11% v/v) and traceability. The sample throughput was 15 samples h-1. The method was in agreement with the reference methods used in the European Union