Moving the regulatory debate forward

Regulation is vital wherever there is (or might be) a market failure. When regulation operates well, both companies and customers benefit. But designing good regulation - and adapting commercially to it - requires experience of both. And we have been working on regulatory issues for decades.

Making regulation work

We advise regulators and companies on how best to introduce, implement and adapt to regulatory frameworks.

We’ve been shaping global regulatory thinking for decades -  from the first price-control reviews on newly privatised industries in the UK, to the introduction of new regulatory regimes all over the world. Our advice is always given with a clear understanding of the wider context. Because we work for both regulators and regulated companies, we’re trusted to be objective by all sides – and our clients benefit.

Changing outcomes in regulated markets requires a deep understanding of the economic and psychological drivers of behaviour, both by customers and market players. We use our expertise in behavioural economics, in both regulatory and commercial contexts, to bring benefits to regulated markets.

Regulated Infrastructure

For regulators and regulated infrastructure companies, making the right decisions requires deep insight into the latest developments.

We have in-depth knowledge and up-to-the-minute understanding of regulated network industries the world over.

Our expertise covers the full range of topics in regulation:

  • Cost of capital
  • Cost benchmarking
  • Incentive design
  • Output targets and delivery incentives
  • Information revelation
  • Financeability and financial modelling
  • Business plan drafting
  • Consumer engagement and preference measurement
  • Treatment of uncertainty
  • Incentivising innovation
  • Tariff setting

We advise clients on price control reviews, appeals of regulatory decisions, and the design and development of regulatory frameworks.

Our advice seeks to design regulation in the long-term public interest, including allowing companies to deliver investment and shareholder returns, on an efficient and sustainable basis.

Strategy, policy and advice

We help you shape strategy by providing rigorous economic expertise and creative thinking.

For regulators:

We advise on how to design regulation to incentivise companies to act in an economically and socially desirable way. We work with lawyers, engineers, environmental specialists and consumer experts to make sure that regulatory frameworks are considered holistically and are sustainable in the long term.

For businesses:

We help develop effective arguments to put to regulators and governments on any and all regulatory issues. We help to define the results businesses must deliver and develop the incentives that will help achieve them.

Modelling and benchmarking

We bring together critical economic thinking with advanced modelling skills to give you clear insight.

We use best-practice benchmarking techniques to understand efficiency and develop a credible evidence-based position.

We use analytical tools to consider the implications of uncertainty to facilitate better decision making.

We provide cost benefit analyses for the following sectors:

  • Electricity
  • Gas
  • Telecoms (fixed and mobile)
  • Aviation
  • Rail
  • Post
  • Water

We advise clients including the European Commission, national regulatory authorities, public institutions and regulated infrastructure companies.

Investments and Transactions

Major transactions require significant regulatory and commercial expertise. Drawing on our first-hand knowledge of the direction of future policy, we provide insights into the operation of existing regulatory and market arrangements and an early view of potential changes.

Our transaction services enable our clients to value and secure their required returns from investment. We give advice that is creative, practical, informed - making sure your infrastructure transaction bid can be a success.

We regularly advise private equity firms and other players on due diligence. Our transaction advisors are supported by Frontier’s many sector experts. Please visit the relevant sector page to find more information on our expertise in that area.