Transcript Establishing a Uniform System of Accounts (USoA) for the NESI

GROUP 3
Establishing a Uniform System of Accounts
(USoA) for the NESI
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The USoA establishes the regulatory accounting
reporting framework for all licensees in the
NESI.
It enables the Commission to monitor the
financial health and compliance with set
performance benchmarks/KPIs.
The USoA provides for the ring-fencing of
accounts of licensed utilities from those of
unregulated business.
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Challenges To Establishing The USoA
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Adapting the FERC version to suit our local
peculiarities
Getting the buy-in of key stakeholders who will be
responsible for implementation?
Reporting and enforcement issues?
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What new items need to be added to our license terms
and conditions to ensure and improve compliance ?
Are our requirements often vague?
What training programmes are required to facilitate
compliance by licensees?
Does NERC have resources to analyze the submissions?
Do licensees have adequate/qualified staff to perform
the analysis we require?
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3 day workshop for USoA
• No feedback/comments from participants
• Desk officers of licensed utilities did not
attend the workshop
• Participants from the Successor Companies
only
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Going forward
• Set up Industry Working Group with
representations from all Sectors of NESI
• Incorporate other operating licensees
• Ensure only the key officers responsible for
accounts preparation are invited
• Send out draft chart of accounts and draft
NESI USoA for review before next stakeholder
meeting
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Going forward cont’d
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Memo to Commission requesting approval of draft
USoA to go for public consultation
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Get a team1 to work on developing a draft template
for transiting to the proposed system
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1 week
Draft document is uploaded to NERC website for
stakeholder comments2
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submitted
2 weeks after Commission approval
Desk officer collates comments and sends them out
to the team for review
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At expiration of 21days on website
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Going forward cont’d
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Team produces a final report with a covering memo
requesting approval for a consultation meeting
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Stakeholder consultation meeting
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1 week
Team produces a final report for Commission to
make rule
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2 weeks
New comments are reviewed and incorporated.
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After 2weeks
2 weeks
Training workshops for utilities with the assistance
of a consultant who may act as expert facilitator.
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RECOMMENDATIONS
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Train Commission’s accountants on USoA so that it
first becomes an accepted in-house document
before the industry adopts it.
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Commission should take responsibility for taking
action on the advice of staff as relates to
compliance and enforcements.
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The regulator first needs to be accountable if it
demands accountability from the industry.
Be consistent: decide, take action.
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Make the website electricity-user friendly.
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Group members
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