ALIGNING THE USEFUL LIVES OF ELECTRICITY NETWORK ASSETS WITH A TECHNICAL CONDITION INDEX AND THE REGULATORY PERIOD
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Keywords

Useful life; technical condition index; component accounting; depreciation; decommissioning provision; regulatory asset; regulated asset base; IFRS 20.

How to Cite

ALIGNING THE USEFUL LIVES OF ELECTRICITY NETWORK ASSETS WITH A TECHNICAL CONDITION INDEX AND THE REGULATORY PERIOD. (2026). International Congress on Economics, Management and Business Studies, 1(10), 9-17. https://econferencia.com/index.php/8/article/view/1607

Abstract

This study develops a methodology for aligning the useful lives of electricity-network assets with a technical condition index (TCI) and the regulatory period. For five TCI bands, the framework specifies technical actions and their accounting, tariff and audit consequences; it also establishes rules for overhaul components, decommissioning obligations and pools of mass assets. In addition, the study proposes a model in which the timing difference between accounting depreciation and tariff-recovered depreciation is recognised as a regulatory asset or liability. Applied to Regional Electric Power Networks JSC, the model produces a depreciation timing difference of approximately UZS 153-455 billion, depending on the technical-condition scenario.

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