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With more than 100 years of Gas history the Argentine gas market is one of the more matures in Latin America. The gas sector has gone through many changes and faced many challenges over the years, including the privatization of companies and tough economic times.
The Argentine National Gas Authority request Novix to develop the tariff calculation model to be used for setting tariffs for the entire gas sector (Transmission and Distribution Companies) on a unique consistent way and based on price-cap economic principles.
The final model allows the authority to easily explore alternative tariff settings in order to restitute economic equilibrium to the sector as well as attending the economic impact on different consumer categories.



Corporación Dominicana de Empresas Eléctricas Estatales (CDEEE) – (Electricity – Dominican Republic)

This state owned energy holding controls 3 distribution companies, 1 Transmission Company and 1 power Generation Company that operates 21 generation companies.

Electricity in this country has been subsidized for attending poor population sectors and the cost of the subsidy is one of the most relevant concepts in the country annual budget.

During the oil price peak occurred in 2008 the electricity subsidy became a presidential concern. The CDEEE has the task of accurately estimate the amount of subsidy the government has to finance. The process of elaborating the answer used to take two weeks and its accuracy was on doubt.

In order to speed up that process and to gain transparency and confidence on the calculated number CDEEE asked Novix to develop a model that projects the entire energy sector of Dominican Republic.

The model includes projecting demand for each region and tariff category. Then it has a module for dispatching power units minimizing the cost of supplying. Latter operational expenditures and investments were projected. And at last all that information feed complete financial statements for each company.

After implementing Novix model the time for estimating has been significantly reduced. On the other hand, as an integrated sector model it is used for several other purposes.