Well-designed regulatory frameworks in sectors such as telecoms, water, energy, rail and aviation should enable companies to invest in improving their services while ensuring that consumers pay a fair price.
Regulation is at the core of CEPA’s expertise. We have advised government, regulatory agencies and companies worldwide on regulatory framework design, implementation and delivery. We apply economic theory to the real world. We understand how regulators think and can advise companies on how best to advance their positions whilst remaining impartial.
We specialise in:
- price controls;
- incentive regime and design;
- cost assessment and efficiency benchmarking;
- competition appeals and studies; and
- regulatory finance and cost of capital.
Follow the links below to read more about our regulatory economics expertise in different sectors.
"Thank you once again for an excellent presentation, you and your team have been doing a great job with the reports. We feel very much inspired by your work and it will provide useful guidance."
European energy regulator
Regulation & competition News & insights
The potential impacts of a partial merger between two of the three Australian mobile telecommunications market operators
Optus has commissioned CEPA to assess the competition impacts of an application to the Australian Competition and Consumer Commission for merger authorisation between Telstra Corporation Limited and TPG Telecom.
Ofwat publishes a report that considers how to facilitate the delivery of multi-sector reservoir systems
The Regulators’ Alliance for Progressing Infrastructure Development (RAPID) and three water companies commissioned a report from CEPA and Agilia to consider the legal and commercial models that could facilitate the delivery of multi-sector reservoir systems.
CEPA advises on tools to evolve energy regulation
The Council of European Energy Regulators has today published our recommendations for how energy regulators can best deploy ‘dynamic regulation’ tools – exemptions from the standard regulations that are limited in time and scope, which aim to foster learnings for future regulatory reforms.
Expert from Ofcom appointed to bolster CEPA’s advisory services for the communications sector
We are pleased to announce the appointment of Dr Chris Doyle as a senior advisor to our communications, media and payment systems practice. Dr Doyle will commence working with CEPA on 1 March 2022.
CEPA recognised as one of the UK’s leading management consultants
Following another year of providing high-quality advice to our clients across our core sectors, we are grateful for the positive feedback from the market, which has led to CEPA’s inclusion in the Financial Times’ independent ratings report.
CEPA collaborates to advise about the selection of offshore transmission owners (OFTOs)
Continuing our co-operation with other specialist advisors in a consortium, we are pleased to provide further expert financial and economic advice to Ofgem under a new four-year contract for offshore electricity transmission assets.
The Payment Systems Regulator (PSR) publishes its report on the card-acquiring market
Card-acquiring services enable merchants to accept card payments. We supported the PSR with its market review and have advised about a range of other payment systems policies.
Smith Square Partners’ Ofgem consortium; TR7 preferred bidder for first asset announced
Ofgem, the GB energy regulator has announced the identity of the preferred bidder for the offshore wind transmission asset connecting the Triton Knoll wind farm to the Lincolnshire coast.
European energy regulators report on Innovative Business Models and Consumer Protection
The Council of European Energy Regulators (CEER) has published a report, for which we undertook the identification and analysis of the business models and supporting case studies.
Getting to net zero requires more policy experiments
A short note that proposes a greater role for deliberate policy experiments to help policy-makers and regulators identify the solutions that will best support decarbonisation at the lowest cost.
Final report on New Zealand’s 2020/21 base milk price calculation published
The Commerce Commission in New Zealand has published its final report following the review of Fonterra’s 2020/21 base milk price calculation.
Final evaluation of New Reg trial in Australia released
The Australian Energy Regulator has published our independent evaluation of a trial, to deliver better outcomes for consumers through network consumer engagement and regulatory innovation.
CEPA Australia advise on asset beta and specific risk premium
We have supported the Commerce Commission, New Zealand with their regular review of the base milk price calculation.
Ofwat’s vision for the 2024 price review (PR24)
We take a look at: What have we learned about Ofwat’s thinking? What changes are proposed? Where do we expect engagement? And what will water companies need to do?
Australian Energy Regulator considers the links between the risk-free rate & market risk premium
The AER asked us to advise on the approach to estimating the Market Risk Premium (MRP) for the 2022 review of the Rate of Return Instrument. Specifically, we were asked whether there is a relationship between the risk-free rate (RfR) and MRP.
Senior consultant - cost assessment
We are looking for an outstanding individual who can play a senior role in our cost assessment and efficiency benchmarking practice.
Consultation on Minded to Positions for ‘fast-tracked’ charging options published by Ofgem
Ofgem publishes consultation under the Access and Forward-looking Charges Significant Code Review with our Quantitative Analysis and Methodology reports alongside.
Ofwat publishes further CEPA report on allocation of risk
Our latest report for Ofwat supports its early thinking on the design of the next water sector price review, PR24.
Ofwat outlines its initial views about the Price Review frameworks for 2024 (PR24) and beyond
The regulator of the water sector in England & Wales has published a consultation response, which discusses its high-level ideas for maximising the potential of price reviews to help the sector create value for customers, communities, and the environment.
Ofgem publishes its RIIO-2 Final Determinations
We have been supporting Ofgem with its review of the responses to the Draft Determinations for the electricity and gas transmission and gas distribution sectors, and the electricity system operator.
Consortium appointed to advise on the auction of offshore electricity transmission assets
CEPA appointed as part of Smith Square Partners consortium to advise Ofgem on the TR7 auction of offshore electricity transmission assets.
Decisions made on the regulation of fibre service providers in New Zealand
The New Zealand Commerce Commission has published its first set of final decisions on the regulation of fibre service providers.
The Utility Regulator for Northern Ireland publishes its price control draft determination
We have been involved in the process since 2018 and have produced reports, which have been used by the regulator to set efficient cost allowances for NI Water.
Improvements in market operator governance
Calls are made for improvements to the governance framework for the Australian Energy Market Operator to support investment efficiencies, manage growing customer costs and achieve national energy goals.
Advice for GB energy regulator to inform its 2021-2026 price controls
We are pleased to be assisting Ofgem with economic and financial components of its Revenue=Incentives+Innovation+Outputs (RIIO-2) process.
Peer review of study into the ‘hurdle rates’ for different electricity generation technologies
The Department for Business, Energy & Industrial Strategy (BEIS) asked us to peer review a cost of capital update for electricity generation, storage & demand side response technologies.
Supporting the decarbonisation of Ireland’s electricity system
Reports published as part of the draft determination for Ireland’s 2021-2025 price control.
CEPA provides analysis for the New Appointments & Variations Regime in the water industry
Ofwat, the economic regulator of the water sector in England & Wales, has commissioned CEPA to analyse bulk charges for the New Appointments and Variations (NAVs) Regime.
CEPA helps to define water poverty, understand future pressures & appraise UK water companies’ efforts
CEPA supports UK Water Industry Research with their work designed to help decision makers and water companies in making water and sewerage bills affordable and their ambition to achieve 'zero customers in water poverty by 2030'.
Ofgem publishes its Decision on UNC678; the modification proposals relating to gas transmission charging
CEPA helps Ofgem, the GB energy regulator, to reach its Decision on the modification proposals relating to the gas transmission charging arrangements.
Ofgem consults on amendments to Gas Transmission Charging regime
Ofgem, Great Britain's independent energy regulator, is seeking views on its 'minded to’ decision on the proposals for modification to the gas transmission charging arrangements.
Civil Aviation Authority issues decision on the price control review of UK air traffic control operator
The UK Civil Aviation Authority (CAA) has issued its decision on the 2020-24 price control review (RP3) of the UK air traffic control operator NATS.
CEPA’s expansion continues across its offices
Increasing demand for CEPA's support and advice drives a growth in consulting team numbers.
Ofgem consult on cost assessment tools & techniques
Ofgem has published a consultation on the cost assessment tools and techniques it intends to apply in setting the RIIO-2 price controls.
Report for the ongoing evaluation of the New Reg process published
The Australian Energy Regulator has published a second insights report that CEPA prepared for the ongoing evaluation of AusNet Services' trial of the New Reg process.
Highways - Efficiency review for the Office of Rail and Road
CEPA commissioned to support review of Highways England’s proposed efficiencies and to perform a high-level analysis of the deliverability of the proposed enhancement programme.
Highways benchmarking: pavement condition
CEPA, alongside TRL, have twice been commissioned by the Office of Rail and Road to assess how pavement condition is measured.
How to regulate fibre service providers
The New Zealand Commerce Commission published its emerging views on regulating the fibre service providers.
Efficiency assessment for Crossrail 2
Transport for London commissioned CEPA to examine the levels of efficiency that might be delivered in designing and constructing Crossrail 2.
CEPA feature as a guest speaker at annual energy conference
Ben Shafran, a consultant who specialises in energy policy and regulation, will feature as a guest speaker at the 2019 UKERC Annual Conference.
Utility Regulator publishes approach papers for its price control
The Utility Regulator in preparation for its price control (PC21), has published its PC21 Opex ‘minded to’ Methodology and PC21 Capex 'minded to' Methodology.
The impacts of digitalisation on the energy market
CEPA has been pleased to support a London School of Economics ‘Capstone’ project to explore impacts of digitalisation on the energy market.
Efficiency incentives to apply to the economic regulation of Heathrow
The Civil Aviation Authority (CAA) has published a report by CEPA alongside its policy update and consultation on the economic regulation of capacity expansion at Heathrow Airport (CAP 1782).
Cost-benefit analysis of new interconnectors in Ireland
Our cost-benefit analysis for the electricity interconnectors demonstrated that increasing the interconnection of Ireland to other markets is expensive but the benefits are likely to outweigh the costs.
Publication of an issues paper on public transport fare in Sydney
The Independent Pricing and Regulatory Tribunal (IPART) has published an issues paper as part of a major review of public transport fares in Sydney and surrounding areas.
Senior hire to meet demand from energy companies and regulators worldwide
CEPA today welcomes Gary Keane as a director to the consulting firm’s London headquarters.
Airport capacity strategy
CEPA’s contribution to this study on delivering the future airport capacity requirements in Ireland for the Irish Department of Transport, Tourism and Sport set out the decisions Ireland has to make - and the timing - to come to a good decision on the future capacity requirements of Dublin Airport.
Cybersecurity in the energy sector: what does it mean for network regulation?
Read our briefing note to learn more about what the key issues might be in the next RIIO price controls.
Assessing the impact of equal transmission charging treatment with gas storage
Our analysis demonstrated that applying equal charging treatment at Bacton IP as for GB storage would further the interests of GB consumers through lower gas prices.
CEPA senior advisor invited to speak at payments regulation forum
Richard Gleed to address government officials, regulators and representatives from across the payments supply chain at a key industry event considering “The future of payments regulation in the UK”.
Econometric benchmarking for Ofwat
CEPA was commissioned by Ofwat to develop a suite of econometric models focusing on different parts of the value chain in order to determine the efficient level of costs allowed for companies under each of the binding price control settlements for PR19.
RIIO-1 price control framework and performance review
Ahead of the RIIO-2 price controls, Ofgem wanted to gather insights on the outcomes of the RIIO-1 regulatory framework. At the end of 2017, the regulator commissioned CEPA to review the RIIO price control framework applied to the first set of RIIO price controls.
Insights report for the ongoing evaluation of AusNet Services trial of the New Reg process
The Australian Energy Regulator (AER) has today published a second insights report that CEPA has prepared for the ongoing evaluation of AusNet Services trial of the New Reg process.
What should regulators make of big data?
In almost every market one can think of, people are talking about the application of big data analytics and machine learning. Energy and other utilities are no different.
Going electric: How to incentivise the efficient deployment of electric vehicles
In our briefing, we examine how the regulatory framework implied by Ofgem’s strategy would affect one of the main drivers of the change: electric vehicles (EVs).
Setting of allowed revenues for the gas transmission & distribution
As part of a consortium, CEPA advised on setting allowed revenues for Gas Networks Ireland’s (GNI) TSO and DSO businesses over the PC4 price control period.
Expert advice on cost of capital issues in the telecoms sector
We provided expert advice to Ofcom on cost of capital issues in the telecoms sector.
Approach to customer segmentation in the water sector
CEPA was engaged by Ofwat to build an evidence base on approaches to customer segmentation and possible data sources to inform approaches to residential customer segmentation.
Assessment of a regulatory framework for retail
We were asked by an economic regulator of the energy sector, to develop a framework for assessing whether their domestic retail energy market was delivering good customer outcomes.
Evaluating the social and economic impact of investments in wastewater
CEPA conducted a literature review of methodological approaches to evaluate economic and social impact of investments in the wastewater sector.
Review of readiness for retail market opening
CEPA was appointed by Ofwat to carry out a targeted review of market participants’ readiness for opening of the retail market in April 2017 for...
Enabling flexibility in the GB electricity market
The advice provided to a GB electricity distribution company in relation to smart networks and flexible energy systems helped our client advance their position with the regulator and government.
Alternative approaches for setting the cost of debt
CEPA were commissioned by two UK economic regulators to look at alternative approaches that could be used in regulatory determinations for the cost of debt allowance.
Open Access funding for publication system in Switzerland
CEPA was asked by the Swiss National Science Foundation (SNSF) to recommend a funding model that would allow for a complete transition to an Open Access (OA) publication system in Switzerland by 2020-2024.
Financing the Universal Postal Service
We have helped Ofcom (and previously Postcomm) think through how best to ensure that Royal Mail is able to deliver the Universal Service in a financially sustainable manner.
Economic assessment of the Future Charging Model for cheque processing
Cheque and Credit Clearing Company (C&CCC) appointed CEPA to provide an economic assessment of the proposed funding and charging methodology for this new Image Clearing System (ICS).
Merger support in the water sector
CEPA supported Ofwat in the CMA inquiry into the merger of South West Water and Bournemouth Water.
Support to higher education institutions during negotiations with publishers of academic journals
CEPA provided support to the JISC Collections to help them conduct negotiations on behalf of the UK's higher education institutions.
Review of Leased Lines Charge Review Model
CEPA were asked by Ofcom to carry out a review of its 2016 Leased Lines Charge Control modelling developed for the purpose of setting charge controls for the three years from 2016/17 to 2018/19.
Modelling the economics of academic publishing for the Publishing Research Consortium
CEPA was commissioned for a study on the economics of academic publishing.
Informing the development of water access charging methodologies
CEPA was commissioned by CC Water to provide a report on possible approaches to access pricing in the water sector in light of the reforms being introduced to make the sector more competitive.