The pricing of infrastructure is critical to the long term success of an economy as poorly structured prices can inhibit growth and incentivise inefficient activity.
NineSquared has worked extensively on the development and application of prices of dams, railways, roads and ports. Our experience has provided us with practical experience as to how prices can impact both the owners and users of infrastructure and how poorly structured pricing arrangement can disincentivise asset owners to expand or maximise throughput from their existing assets.
NineSquared offers an in-depth understanding of the commercial legal, operational and practical issues involved in setting prices for major infrastructure assets.
Our Infrastructure pricing services include:
- Auditing existing pricing regimes: to ensure they are consistent with the agreed terms and approach in al scenarios
- Developing and assessing user funding schemes: an effective user funding arrangement ensures that users have a realistic fall-back option when negotiating the cost and timing of expansions
- Advice on risk sharing: Regulators typically work hard to ensure infrastructure owners do not over or under recover, but this requirement can be at the expense of incentivising increased productivity,
- Advice on tariff structure: Ensuring that the tariff structure effectively balances the need to be cost reflective and costs of managing and using a complex tariff structure
- Cost build up analysis: Analysing and forecasting operating and maintenance costs
The NineSquared CV
- User funding analysis
- Aurizon WACC review
- Goonyella Abbot Point Expansion audit
- Heavy vehicle pricing review