Energy market advisory
Energy market transactions are a constant feature of markets across the world. These can involve corporatisation of government-owned utilities as part of the inception of markets, privatisations and ongoing transactions between participants.
In such a capital-intensive industry, the stakes are always high. Sound, trustworthy advice is critical for boards, management, regulators and governments. Frontier Economics has advised public and private parties on all aspects and types of energy transactions. We regularly advise on privatisations, corporatisations, mergers, trade sales and greenfields project developments.
We help our clients on a range of issues:
- Using economics and our models to undertake energy business valuations and evaluations of trading and hedging strategies
- Using economics to design auctions and contract structures that maximise value for sellers and help buyers understand the risk adjusted value of acquiring assets either on a stand-alone basis of as part of a portfolio
- Valuing regulatory risks and advising on competition issues and provision of litigation support
- Developing contracting and spot market trading strategies including development of transfer pricing policies, contract levels and prices and alternative options for meeting wholesale energy needs
- Valuing interconnects in electricity and gas system and developing cross border/region trading strategies and contracts
- Practical and useful buy-side and sell-side market and regulatory due diligence reports that are built on a foundation of detailed understanding of energy markets and the important institutional and regulatory and governance interactions
Why choose Frontier Economics
It’s not just companies that trust us to get it right with important decisions, we help governments when they want to reform entire markets and sectors and provide advice to regulators about market conditions.
Our clients in this area include major energy companies in Australia and Asia, several state governments and the Australian competition regulator, the Australian Competition and Consumer Commission.