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Download Financial model user guide
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Setting price controls for 2015-20: PR14 financial model user guide September 2014 _________________________________________________________________________________ 1. Introduction ................................................................................................................................... 3 Background ....................................................................................................................................... 3 Structure of this user manual ............................................................................................................ 4 2. Financial model ............................................................................................................................ 6 Users ................................................................................................................................................. 6 Technical requirements .................................................................................................................... 6 Opening the model ........................................................................................................................... 6 Operating the model ......................................................................................................................... 7 Structure of the financial model ........................................................................................................ 8 Retail sheets ................................................................................................................................... 11 Wholesale sheets ........................................................................................................................... 11 Combined sheets ............................................................................................................................ 12 Output/report sheets ....................................................................................................................... 13 Other sheets ................................................................................................................................... 13 Input sheets .................................................................................................................................... 14 Navigating the ‘inputs real’ sheet .................................................................................................... 14 F_Inputs .......................................................................................................................................... 19 Calculation sheets overview ........................................................................................................... 19 Wholesale calculation sheets ......................................................................................................... 19 Retail calculation sheets ................................................................................................................. 21 Price control solving ........................................................................................................................ 24 Standard reports (model outputs) ................................................................................................... 27 ‘F_Output’ sheet.............................................................................................................................. 28 3. Price control solving ................................................................................................................... 29 Introduction ..................................................................................................................................... 29 Retail price control – net margin headroom check ......................................................................... 30 Wholesale price control solving ...................................................................................................... 32 Stage 1 – reset allowed revenues .................................................................................................. 36 Stage 2 – adjust gearing ................................................................................................................. 37 Stage 3 – target rate of return......................................................................................................... 43 _________________________________________________________________________________ 1
