Regulatory Economics

We use rigorous economic research and data-centric analysis to create insights that help our clients answer their most important questions.’

Applying economic frameworks and analysing our clients’ problems means more than simply building a model. Our models give our clients a richer picture of the present and help them make the right decisions for the future.

It’s all about providing our clients with actionable, evidence-based insights informed by an understanding of the economy, incentives and interactions that make up our daily lives.

Whether you’re seeking to decide on an investment, a commercial negotiation or deciding between policy alternatives, we can build a fit-for-purpose model to enhance your decision-making. Our team’s extensive experience and skills in model development gives us the ability to tailor our models to your specific requirements.

Regulatory economics expertise

We have expertise across a wide spectrum of regulatory economics tasks, including:

Developing regulatory pricing models

NineSquared has ‘built building’ block pricing models for major rail and port organisations and in doing so has developed a detailed understanding of the complexities of the model, particularly with respect to the roll forward of the asset base and the integration of capital expenditure into the pricing.

Pricing audits

The regulatory building block model has been used as the basis for a number of commercial arrangements between infrastructure users and infrastructure owner even when the asset (or pricing) is not directly regulated. These arrangements are detailed in legal documents and then conceptualised into models that are used to derive prices. NineSquared has undertaken a number of reviews and audits of these pricing models to ensure there is consistency between terms of the agreements and their actual application. The result has typically been a material change in the price being charged and generated Millions of dollars of benefits for our clients

Regulatory Reviews

Regulated businesses go through a regulatory cycles at the end of which the parameters which define how the business can be operated and priced are reviewed and reset. NineSquared has a strong track record in helping both regulated entities and companies that are major customers of regulated businesses prepare for and negotiate these review processes, including drafting responses to Draft Decisions, drafting technical papers on specific aspects of the review (for example user funding and operator margins) and presenting arguments with respect to the WACC.

Demand forecasting

Accurately predicting the future demand for a good or service is essential for making smart business decisions. Our demand forecasts can inform investment decisions, estimate revenue outcomes, and provide valuable insights into public policy initiatives and strategies.

Economic impact assessments

We can assess the economic impact of your proposed investment, initiative, policy and regulation on the community and specific sectors of the economy through economic impact assessments, regulatory impact statements and economic contribution studies.

Cost-benefit analysis

Our cost-benefit analysis is designed to help you estimate the social and financial costs of proposed projects and investments to assist in project prioritisation and selection, ensuring that projects are net contributors to social welfare. We give you confidence that you are making the right decision through quantifiable evidence.