Our clients call on First Economics to perform a variety of different advisory roles. In many cases, we are asked to provide specialist, independent reports to inform the debates between regulator and company. We usually combine this work with behind-the-scenes strategic advice and guidance, helping our clients to formulate their arguments and shape the evidence that they make available to external stakeholders. Our consultants have also been used in the past to reinforce clients' in-house teams, bringing their experience and expertise directly to the writing of consultation documents and responses. We are active in all of the regulated sectors of the UK economy. We also work internationally on a growing number of regulatory issues overseas and have a respected transport policy practice. See below for some examples of our work and here for a list of our clients over the last three years. Water We work with five of the ten water and sewerage companies in Much of our work during the last few years was focused on Ofwat's 2009 water periodic review, PR09. During this review, we undertook projects looking at the implications of periodic reviews from outside the water sector for regulatory 'best practice', as well as more focused pieces of analysis on the cost of capital, the setting of efficiency targets and the framework for incentivising improvements in service quality. We have more recently been contributing to Ofwat's work on future price limits in preparation for PR14. Energy We are working with two of the GB gas distribution networks during the RIIO-GD1 review and all four of the GB transmission networks during the RIIO-T1 review. We previously advised the Energy Network Association during Ofgem's recently completed RPI - X @20 project and seven GB electricty DNO owners during Ofgem's DPCR5. We are also acting as an adviser to the Northern Ireland Authority for Utility Regulation during its ongoing review's of NIE's transmission and distribution price controls. Aviation First Economics acted as the expert adviser to the UK's Competition Commission on cost of capital issues during the 2007 and 2008 inquiries into price controls at Heathrow, Gatwick and Stansted airports. We also worked as an adviser to the CAA during the 2009/10 review of NATS' price controls, having had a similar role during the 2005 review. Rail In the rail sector, we act as advisers to the Association of Train Operating Companies (ATOC), the Department for Transport and the Office of Rail Regulation (ORR). Many of Britain's train operators also attend our Owner Group Forum. In recent months, we have been working with ORR on the regulation of Network Rail, assisted ATOC on issues associated with the franchising of passenger rail services, and advised the DfT on competition in the rolling stock leasing market. We have also helped individual companies understand and apply track access pricing rules. Post First Economics acted as advisers to the UK's Postal Services Commission (Postcomm) during the regulator's most recent review of Royal Mail's price control. Over a period of 18 months, we provided the analysis that underpinned Postcomm's proposals to modify the framework that incentivises Royal Mail to improve its quality of service, while also providing input into the setting of efficiency targets and the measurement of Royal Mail's cost of capital. We have since been reappointed to Postcomm's panel of advisers for a further four-year period. Telecommunications We acted as adviser to the Competition Commission in the recent access disputes between Ofcom, BT and Cable & Wireless which were referred to the Commission by the Public Private Partnerships We advised Tube Lines, one of the infracos that was formed as part of the London Underground public-private partnership, as it underwent its first ever periodic review. International Outside of the UK, we have been helping a number of clients during periodic reviews and, more fundamentally, in setting up regulatory regimes for the first time. For example, we are advisers to the Civil Aviation Authority of Singapore during its review of the price cap at Changi Airport. In Saudi Arabia we are currently working to establish an economic regulatory framework for the rail sector. |
