The gas supply chain is undergoing a transformation driven by decarbonisation across the energy sector. This transformation creates challenges for producers, traders, consumers and operators of regulated and unregulated infrastructure assets.
We have extensive experience of analysing gas markets and networks. We have conducted security of supply assessments, helped design gas network charging arrangements, assessed the economics of key gas infrastructure assets, and evaluated the impact of European network codes.
We understand the challenges posed by the transformation of the sector. This includes the depletion of mature gas fields and the development of new supply sources such as shale gas, the growing global availability of LNG supplies, the increasing interest in biomethane, hydrogen and carbon capture and storage and the increasing need for flexibility in the gas and electricity sectors.
At CEPA we use sophisticated, global gas market models, robust economic theory and the in-depth sector knowledge of our team to assist our clients to navigate these challenges.
Examples of recent work include:
- a study into the impacts of applying equal charging treatment with storage for bi-directional interconnection points for a gas interconnector;
- a study on the cost effectiveness of a range of technological solutions in abating greenhouse gas emissions (GHG) in the power sector for a private-sector company; and
- a systematic review of the risks to gas security of supply within the GB market over the next 20 years for the Department for Business, Energy and Industrial Strategy (BEIS).
Well-designed wholesale energy markets should give stakeholders the right signals to participate.
Energy transition & flexibility
The energy system is changing at an unprecedented pace. Policy, social and...
As more and more ageing infrastructure is being decommissioned and the appetite...
Our key contacts for our Energy practice are...
If you would like to talk to someone regarding our experience in this sector please contact our experts.View the Energy team
Energy News & insights
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.
Initial insights published on price signals for demand-side flexibility in the GB energy market
CEPA and Energy Systems Catapult (ESC) have been appointed by BEIS to carry out a study on energy price signals, exploring what an alternative system of network and policy price signals might look like. CEPA and ESC held a webinar when the initial findings were presented.
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.
Invitation for a workshop on price signals for demand-side flexibility in the GB energy market
CEPA and the Energy Systems Catapult have been appointed to carry out a study on energy price signals. We are inviting interested parties to attend a workshop in which we will present the initial findings, and set out the opportunities to contribute to the next phase of the study.
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.
Locational energy pricing in the GB power market
Working with energy networks specialists TNEI, we have produced new research for Energy Systems Catapult on the role of locational energy prices in facilitating the decarbonisation of Britain’s energy system.
Opportunities to join the CEPA team in Australia
CEPA Australia, which advises clients throughout the Asia Pacific region, is expanding and is now looking to fill two new vacancies.
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.
Quantitative energy data scientist
We are looking for a bright and motivated analyst to join our growing CEPA Energy Modelling team to help develop and expand our energy modelling capabilities.
Ofgem’s interconnector policy review
We set out some important considerations to support Ofgem’s Interconnector Policy Review.
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.
Views invited on barriers to demand-side flexibility in the GB energy sector
CEPA and the Energy Systems Catapult have been appointed by BEIS to carry out a study on energy price signals, as part of BEIS’s Alternative Energy Markets programme.
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.
Assessment of proposed electricity trading arrangements between the UK and EU
Working with international partners, we have delivered a cost benefit analysis of proposed arrangements for day-ahead trading of capacity on electricity interconnectors between GB and other markets following the UK’s departure from the EU.
Evaluation of ‘Innovation Link’ Ofgem’s innovation support programme
The Innovation Link is Ofgem’s main support programme for innovators looking to launching novel propositions. It offers regulatory guidance as well as trials and derogations, contributing to an enabling and adaptive regulatory environment to benefit consumers and support the UK’s transition to net zero.
CEPA’s Impact Assessment helps industry to determine merits of Electricity Meter Splitting
CEPA’s analysis of the impacts of proposed modification P379 has helped the industry to better understand the merits and drawbacks of introducing electricity meter splitting. Our findings led to the proposer withdrawing the modification.
Director of CEPA Energy Modelling Ltd to speak at launch of Energy & Climate report
The independent European think tank, CERRE, will host an event on 16 March to launch its Energy and Climate report, “Electricity and gas coupling in a decarbonised economy”.
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.
Decarbonisation & sector integration
Consumers, policy makers and private businesses are focusing on decarbonising economic activity to limit the impact of climate change and to secure an environmentally sustainable future.
African Development Bank (AfDB) launches report to support investment into the African energy sector
AfDB and the Sustainable Energy Fund for Africa commissioned a consortium led by CEPA, to assess the availability of local currency finance for sustainable energy projects and the obstacles developers face in tapping into local financial and capital markets.
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.
CEPA director presents his network charging vision to key energy stakeholders
Speaking at DCUSA Ltd’s 2020 Strategy Day, Patrick Taylor set out his views about the future of electricity charging in GB.
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 supports Australian distributed energy resource (DER) access & pricing conversations
The Australian Energy Market Commission engaged CEPA to identify options that could improve the integration of DER into the electricity system.
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.
CEPA fast-track relief service
In these challenging times, we are able to offer a hand of support to those that find themselves facing resource constraints as a result of the global covid-19 crisis.
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.
Considerations for UK regulators setting the value of debt beta
UK Regulators Network publish a CEPA report on approaches to debt beta estimation and the link between debt beta and gearing levels.
CEPA launches cost-effective, specialist energy modelling service with pre-eminent expert
CEPA Energy Modelling Ltd, a new subsidiary dedicated to meeting the increasing advisory needs of energy companies, regulators and governments across the globe is formed.
CEPA Outage Cost Calculator
This calculator lets you estimate how much you would need to be compensated if you were to experience a temporary household electricity blackout.
CEPA invited to build on its existing South American links
As a result of CEPA’s increasing work in South America, one of the firm’s directors, Attila Hajos, accepted the invitation to speak at the 12th Annual Meeting of the Colombian Energy Sector.
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.
Understanding the distributional impacts of time-of-use tariffs on consumers’ bills
The roll-out of smart meters capable of measuring half-hourly consumption presents a number of opportunities. If introduced alongside time-of-use tariffs ...
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.
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.
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.
Some lessons from technology-neutral auctions for low-carbon electricity generation
In this briefing note, we explore how successful technology-neutral auctions for electricity generation have been in the past and discuss some key lessons.
The Utility Regulator in Northern Ireland publishes domestic consumer insight tracker findings
The Utility Regulator (UR) in Northern Ireland has published the results of its first Consumer Insight Tracker Survey.
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.
Capacity Auction Monitoring for Capacity Market in Ireland and Northern Ireland
Since 2017, we have been the Capacity Auction Monitor (“Monitor”) for the Capacity Remuneration Mechanism (CRM) for the Integrated Single Electricity Market (I-SEM).
Estimating the value of lost load for electricity in Europe
We were asked by the Agency for the Co-operation of Energy Regulators (ACER) to conduct a study on the estimation of the value of lost load (VoLL) for electricity supply in Europe.
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.
The capacity market five-year review - some key questions
Some of the key questions that stakeholders should be asking as part of the UK Government's much-anticipated review of the electricity capacity market are set out in a briefing note.
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.
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.
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.
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).
Positive winds for offshore - But don’t get blown over just yet
Following the announcement of the results for Round 2 of the CfD auction, we explore in this briefing what they mean for the offshore wind energy sector and the deployment of renewable electricity generation.
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.
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.