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How we Helped them?
Price Control Financeability and WACC
MCC, led by PJ McCloskey, delivered exceptional support to Ofgem on a range of critical projects:
- Policy Leadership for Price Controls:
- Led policy and analysis for RIIO-2, building a financeability model, engaging with rating agencies, and evaluating the implications of inflation approaches.
- Drafted the finance chapters for Ofgem’s 2021 and 2023 Final Determinations, covering debt and equity financing, WACC allowances, working capital facilities, and capitalisation rates.
- Design of Risk and Return Arrangements:
- Contributed to the development of the ESO Reporting and Incentives (ESORI) Arrangements, ensuring the ESO’s performance was transparent and accountable to stakeholders.
- Developed evaluation criteria focusing on balancing costs, demand forecasting, the phase-out of non-competitive balancing services, and day-ahead procurement.
- Performance Evaluation Frameworks:
- Designed metrics and methodologies for assessing the ESO’s performance, considering plan delivery, metric outcomes, stakeholder input, and overall value for money.
- Provided insights to support Ofgem in holding the ESO accountable for its objectives while delivering efficient services.
Through these projects, MCC played a pivotal role in strengthening Ofgem’s financial and regulatory frameworks, enhancing the ESO’s accountability, and ensuring effective delivery of its responsibilities.
