Regulated Asset Pricing | Public Transport Fares

Pricing can be a complex process influenced by many factors, however, once impacts are understood, pricing strategies can be developed to achieve organisational objectives and financial targets.

What we do

Well structured pricing arrangements for infrastructure assets, such as dams, railways, roads, and ports, are critical for encouraging growth and efficiency. With multi sector experience and specialisation in transport, we understand how prices impact both infrastructure owners and users, and particularly how poorly structured pricing arrangement can disincentivise asset owners to expand or maximise throughput from existing assets.

Our pricing services capability is based on assisting clients to identify, understand, and respond to the commercial legal, operational and practical issues involved in setting prices for their major infrastructure assets. Using our tailored pricing and revenue models, clients can formulate effective pricing strategies and make well informed decisions. This approach allows likely impacts on expected revenue of various options to be identified and assessed. Pricing adjustments that allow clients to better meet consumer demands for products and services also form part of this service, together with the following specialist areas:

Public transport fare setting – With fares and pricing expertise and experience in pricing for public transport services, we offer public sector clients an understanding of both the costs and benefits of different fare model options. We have developed financial models based on ticketing data to identify revenue outcomes, passenger demand, and the impact of proposed changes on different customer segments.

Regulated asset pricing – Regulated asset pricing involves determining appropriate charges for use of essential services and infrastructure subject to government regulation. These services often include utilities such as electricity, gas, water, and transportation infrastructure. We bring specific rail, ports and water infrastructure pricing expertise, enabling us to develop economic models, calculate the cost of capital for regulated entities to inform pricing strategies, prepare regulatory submissions, and integrate pricing into regulatory access agreements.