Regulatory Economics

Owners, users and regulators of regulated assets require data driven information to make sound decisions in respect of regulatory arrangements, servicing, and pricing. In this highly specialised area of advisory services, we assist utilities, infrastructure providers, and other regulated entities to navigate the complexities of regulatory frameworks, ensuring compliance requirements are met and the optimal financial outcomes are achieved.

What we do

Regulated asset pricing involves determining the appropriate charges for the use of essential services and infrastructure that are subject to government regulation. With regulatory arrangements in Australia operating at both national and state levels, we have advised clients whose business is operation of utilities, such as electricity, gas, water, and transportation infrastructure.

We have significant expertise in pricing of rail, ports and water infrastructure and develop data driven economic models that calculate the cost of capital for regulated entities, ultimately informing pricing strategies, regulatory submissions, and pricing into access agreements.

Develop pricing submissions – We assist regulated businesses affected by policy and regulatory change to quantify financial impacts by preparing operational and capital cost forecasts.
Provide expert economics and commercial advice in relation to pricing and access negotiations – We provide governments, asset owners and companies seeking access with negotiation support and advice on pricing and access issues during and throughout regulatory pricing and access processes.
Understand regulated access and pricing arrangements – Regulated asset pricing involves determining the appropriate charges for use of essential services and infrastructure, such as electricity, gas, water, and transportation infrastructure (rail, ports, roads), which are subject to government regulation. We assist clients with developing robust economic models and calculation of capital costs for regulated entities that informs pricing strategies and regulatory submissions and allows pricing to be incorporated into access agreements.

Working with both public and private enterprises, key clients who have benefitted from our regulatory economics expertise include Queensland Competition Authority, several major mining companies operating in Queensland and New South Wales, Pacific National, and Seqwater.