Expertise
Regulatory Finance
At CEPA, our Regulatory Finance practice sits at the heart of what we do - providing clients with incisive economic, financial, and modelling advice that underpins critical decisions with impacts on large parts of society. We serve governments, regulators, and regulated firms worldwide, with dedicated teams in both the UK and Australia.
Our offering covers the following aspects:
Allowed returns & Weighted Average Cost of Capital
We provide expert guidance on setting the cost of capital in regulatory determinations. We evaluate the weighted average cost of capital (WACC) across our sectors. We have acted as Strategic Partners, Expert Witnesses and independent advisors across our assignments.
Asset valuation insights
We draw insights on asset valuation from our tools. This helps us interpret transactions and asset values, while forecasting how those values may change in future through changes in the underlying regulatory and commercial frameworks.
Financeability & profitability review
Through the development of relevant quantitative and scenario modelling, we assess whether proposed regulatory frameworks support a firm’s ability to finance its operations and maintain sustainable returns.
Regulatory and commercial framework design
We advise on the level and distribution of potential returns from a given framework, assisted by technical quantitative tools (e.g. Monte Carlo analysis), and assess the balance between risk and return.
Advising on asset-light firms & accounting frameworks
We help clarify how asset-light business models perform under regulation, how margins should be set, and support clients with financial accounting advice tailored to regulatory environments.
Advanced financial modelling
Our in-house modelling team builds complex, transparent financial models to underpin every element—from WACC assumptions to profitability and inflation analysis.
Regulatory Finance News & insights
To find out more about how to work with us, please follow this link.
