Pricing & regulation
The Frontier Economics water practice has played a central role in the evolution and implementation of pricing and regulatory regimes for the water sector in Australia, the UK and elsewhere internationally.
The level and structure of prices for water and wastewater services has important economic, commercial, social and environmental implications. Well-designed tariff structures are crucial for promoting the efficient use of water; achieving social objectives such as affordable tariffs; and ensuring robust financial outcomes for water businesses. The monopolistic nature of much of the industry also calls for regulation to ensure that prices are not excessive and service levels are maintained, without imposing undue red tape burdens or stifling innovation.
The Frontier Economics water practice has played a central role in the evolution and implementation of pricing and regulatory regimes for the water sector in Australia, the UK and elsewhere internationally. We are regularly engaged by both regulated businesses and regulators to provide strategic advice, technical assistance and authoritative independent assessments. This includes developing and reviewing regulatory financial models and demand forecasts.
We are able to combine our appreciation of sound regulatory design principles with a deep understanding of what works in practice to undertake major studies such as the development of a best practice regulation model for the urban water sector for the Water Services Association of Australia.
We also have substantial experience in the development of tariff and pricing regimes in both rural and urban water contexts.
Frontier Economics has extensive experience in regulation and pricing arrangements in other sectors, including the electricity, gas and telecommunications industries. This enables us to approach problems in the water sector with perspective from other regulated industries and provide innovative solutions to our water clients.