There are few things more fundamental to a business than the price it can charge for its product. Regulators are charged with the responsibility to ensure that prices are not excessive.
We have provided assistance with the high level strategic thinking that should underlie either party’s approach to a price review. In particular, we provide rigorous economic thinking and a creative external perspective to assist the company, or regulator, in defining its approach to a pricing review.
We also provide support in undertaking the detailed analysis that is required in any review. This covers areas such as efficient incentive design, the form of the price control, development of forecasts, cost of capital estimation, financeability modelling, asset valuation, efficiency and productivity analysis (benchmarking) and investment appraisal.
Our experience covers work for both regulators and regulated companies and covers every major regulated industry.