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Economic Regulation & Modelling

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Economic Regulation & Modelling

A key strategic challenge for many of our clients is navigating their businesses through regulatory environments. The Economic Regulation and Modelling service line combines modelling expertise with a comprehensive understanding of regulatory frameworks to deliver robust solutions.

Our team of specialists translates intricate market dynamics and regulatory nuances to provide integrated support to clients navigating the regulatory landscape and to enable informed decision-making. Our clients benefit from our capabilities in forecasting, economic benchmarking, capex and opex assessments, cost-benefit analysis, and business case preparation.

Practice Areas

Regulation

We support clients in navigating the evolving regulatory landscape, regarding both existing and emerging rules to provide actionable strategic guidance and support.

  • Forecasting
    We provide support in developing submission forecasting models & non-modelling or ad-hoc forecasts​.
  • Regulatory strategy advice and support
    We provide leverage our regulatory expertise to provide actionable strategic guidance and support to help our clients navigate an increasingly complex regulatory landscape, with respect to both current, emerging, and future regulations.
  • Regulatory change proposals
    We support clients in the development of rule and regulatory change proposals and delivery of changes related to economic regulation of regulated entities, including the development of submissions.
Modelling and Analytics

Our specialised team provides support in the development, refinement, and application of modelling and analytical tools used across the energy sector.

We also vigorously maintain internal modelling capabilities for client applications and provide support in performing ad-hoc customised analysis.

  • Forecasting and modelling support
    We support and conduct modelling for a range of applications, including but not limited to tariffs, demand, ICT, repex, augex, and other expenditure forecasting.
  • Ad-hoc analysis and modelling
    We leverage our modelling expertise to provide flexible support for a wide range of ad-hoc analysis and modelling.
  • Geospatial analytics and mapping​
    We provide support and significant expertise in deriving useful insights from spatial software, for applications including but not limited to network resilience modelling.
Business Cases

In collaboration with our clients and our multidisciplinary teams, we can co-create an investment case including narrative developemnt, and estimation of cost & benefits that align to the the client’s strategy and the specific needs of stakeholders.

  • Business case writing​
    We collaboratively support the development of clear and persuasive investment narratives, tailored to meet the specific identified need of the client.
  • Business case supporting economic modelling​
    We leverage our economic modelling expertise and industry knowledge to collaboratively develop investment cost, benefit, quantified risk, and NPV estimates which are aligned to the narrative and business need of the investment.
  • Business case strategy and approach
    We guide you through the entire business case development process, from defining project goals to consulting key stakeholders and crafting a tailored messaging approach. This ensures that the investment case is aligned to the the client's strategy and the specific needs of stakeholders.
  • RIT-T/D support
    We understand the intricacies of project financing within the energy sector. Our team provides support in navigating the entire Due Diligence process, including in preparing submissions and responses to Requests for Information (RFIs).
Market Modelling

We maintain an internal market modelling capability to develop revenue estimates to support investment decisions on a range of energy projects.

  • Wholesale market scenario analysis
    We create customized simulations of the wholesale electricity market under a variety of conditions. This provides clients with the ability to explore potential future market scenarios to optimise bidding strategies, assess the impact on new projects, manage exposure to risks, and identify opportunities for market participation.
  • New generator revenue/output analysis and feasibility assessment​
    We provide modelling support in evaluating the economic viability of a generation project through modelling the expected revenue and output of your proposed generator under different market conditions.
  • Non-generator Wholesale market scenario analysis
    We provide market modelling services for other market participants. This includes but is not limited to assessing how fluctuations in wholesale prices will affect margins for retailers and how large energy users can identify opportunities to optimise their energy consumption based on projected market conditions.