MCC Economics advises governments, regulators, and regulated companies on financial and economic regulation across energy, water, aviation, and infrastructure sectors. We help clients design and evaluate price controls, develop tariff frameworks, and assess regulatory models that balance investor confidence, consumer value, and long-term sustainability.
Evidence-based Analysis for Fair, Accountable Regulation
MCC Economics advises governments, regulators, and regulated companies on financial and economic regulation across energy, water, aviation, and infrastructure sectors. With experience leading key elements of price control design, defending decisions under appeal, and engaging stakeholders across the regulatory cycle, we help clients create frameworks that balance company revenues, consumer interests, and long-term sustainability policy goals.
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Publications
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Metric
How can we Support Clients?
We support clients at all stages of the regulatory process, from early preparation and financial modelling, through consultation and appeal, to implementation and performance evaluation. Our clients typically seek our support in scenarios such as the following:
Preparation and modelling ahead of upcoming price control reviews
Technical analysis and documentation during live regulatory reviews
Reviewing or defending regulatory determinations
Post-review implementation support, including licence amendments and incentive mechanisms
Addressing affordability, fairness or tariff structure concerns
Assessing financeability under evolving market or regulatory conditions
Strategic advisory for boards and leadership teams
Embedded consultancy support within regulatory or company teams
Independent, publishable research and policy advice
Example Financial Review of UK Water Companies
Our Services
Our regulatory services span the full spectrum of financial and policy tools needed to develop, challenge, and defend regulatory frameworks.
Development and review of price control and revenue models, tailored to region- and sector-specific contexts
Scenario analysis,econometrics, policy model and financial model builds and reviews
Tariff structure and bench marking analysis, including distributional impacts (i.e. for network operators and utilities);
Cost of capital (WACC) estimation, stress-testing, and cross-checking, including equity/debt modelling and macroeconomic risk assessments
Financeability assessments and credit metric analysis aligned with regulatory policy goals and investor expectations
Design and evaluation of incentive mechanisms
Cost bench marking and efficiency reviews
Drafting policy documents
Updating licences with new text or formulae
Independent review and audit of regulatory models
Policy and market assessments to support reform
Ex-ante or ex-post reviews or evaluations.
Board and executive-level advisory
Embedded support to internal regulatory teams
Example visuals from WACC Projects
Our Approach
We structure our work to meet client needs while ensuring credibility, transparency and defensibility, typically by employing an approach such as that described below:
1. Review and understand the relevant regulatory context and review cycle
2. Consider sector-specific issues and region-specific jurisdictional requirements
3. Clarify client’s objectives, timelines and internal constraints
4. Check for conflicts
5. Identify appropriate methodologies, risks and trade-offs
6. Propose solutions,methods, timing and costs
7. Deliver rigorous outputs that can withstand scrutiny
Our team combines deep technical expertise with practical experience engaging with regulators and regulated entities.
Example Cost Benchmarking Analysis
Managing Risk
Our clients rely on us to deliver high-quality outputs that can be trusted by Boards, regulators and appeal bodies. We:
Are highly unlikely to face conflicts of interest
Deliver to agreed timelines and standards
Are able to ensure reliance on key resources
Have experience with multiple sides of regulatory processes (e.g. policy, delivery,challenge)
Know how to protect clients from pitfalls and stress
We focus on reducing client exposure to foreseeable policy, modelling and legal risks.
Benefits for clients
100+ years of price control experience amongst our team
Up to 10 full-time resources for rapid resource problems
Experience spans key regions, including: UK, Australia, UAE and Oman
Experience covers key sectors, including: electricity, water, district cooling, aviation,gas, CCUS, nuclear and other energy industries
We are not‘sit-on-the-fence’ or ‘play-it-safe’ consultants
We build bespoke teams for each project (unlike other supplier who need to use their existing staff regardless)
We are proactive can-do collaborative characters
We give clients what they want, not what we want (which is surprisingly unique!)
Our Intellectual Property includes thousands of variables and databases (including the following examples)
Example incentive performance evaluation and results
Example Review of Electricity Demand Forecasting Accuracy
Evidence in Action
Recent examples of our regulatory economics work include:
WACC analysis and expert witness support for Ofgem's RIIO-2 controls – including successful defence at the CMA, where our director's testimony was cited 27 times.
Rate of Return advisory for the Australian Energy Regulator (AER) – spanning macroeconomic analysis, WACC cross-checks, and financeability assessments across 32 networks.
WACC support and regulatory finance modelling for TAQA and Abu Dhabi DoE – incorporating scenario analysis and policy model development for RC2 controls.
Review and critique of Ofwat’s PR24 WACC proposals for the Consumer Council for Water – including alternative modelling approaches and peer-reviewed recommendations.
Financial modelling and finance policy advisory for the Civil Aviation Authority (CAA) – for Heathrow (H7) and NATS (NR23), including cost of capital,credit metrics, and RAB modelling.
Regulatory model assurance and tariff reviews for GMO NI –ensuring consistency with licence conditions.
Policy modelling for distributed solar in Abu Dhabi –assessing financial feasibility, investment returns, and policy trade-offs.
Support to Ofgem and developers in OFTO divestments and CCUS regulation – including model assessments and guidance on asset transfer andr isk-sharing frameworks.
District cooling regulation in Abu Dhabi – reviewing financial efficiency and consumer fairness across 30 cooling plants, and assessing IRRs against WACC benchmarks.
Further detail available on request.
Trusted by Regulators and Stakeholders
We’ve supported regulators across the UK,UAE, and Australia - including Ofwat, Ofgem,the Civil Aviation Authority, the Consumer Council for Water, and the Australian Energy Regulator. Our work has included:
Leading cost of capital policy and WACC modelling
Supporting regulatory appeals through independent analysis and expert witness input
Developing and enhancing price control models for energy, water, and aviation networks
Designing incentive frameworks and performance evaluation tools
Organisations we Know Well
We are particularly familiar with the following entities.
UK Water Sector
Anglian Water/ ANH
Dŵr Cymru/ Welsh Water, WSH
Northumbrian Water, NWG, NES
Severn Trent/ Severn Trent, STW, SVT, SVE
Southern Water, SWW, Bristol Water, BW, SBB
South West Water, SRN
Thames Water, TW, TMS
Portsmouth Water, PRT
United Utilities/ United Utilities Water, UU, UUW
Wessex Water, WW, WSX
Yorkshire Water, YKY
Affinity Water, AFW
South East Water, SEW
South Staffs Water/ South Staffordshire Water, SSC
SES Water/ Sutton & East Surrey Water
Hafren Dyfrdwy, HD, HDD
Thames Tideway Tunnel, TTT
Essex & Suffolk Water, ESW
MUA Water
Cholderton and District Water Company/ Cholderton Water
Albion Water
Independent Water Networks, IWNL
Icosa Water/ Icosa Water Services
Advanced Water Infrastructure Networks
ESP Water, ESP
Indevor Water
Leep Networks Water
Matrix Water
Environment Agency, EA
Scottish Water, SW
Northern Ireland Water, NIW, NI Water
Veolia Water UK
SUEZ Water UK
Aqualia
Department for Environment, Food and Rural Affairs, DEFRA
Ofwat/ The Water Services Regulation Authority
Consumer Council for Water/ CCW/ CC Water
UK Energy Utility Sector
UK Power Networks, UKPN, Eastern Power Networks / London Power Networks / South Eastern Power Networks
SP Energy Networks, SPEN, SP Distribution / SP Manwe
Electricity North West, ENWL, Electricity North West Limited
Abu Dhabi Transmission & Despatch Company (TRANSCO)
Environment Agency – Abu Dhabi (EAD)
Tadweer Group/ Abu Dhabi Waste Management Company
Emirates Power Company (EPCo / Emirates Power) – Umm Al Nar IWPP
Gulf Power Company (GPC / Gulf Power) – Umm Al Nar IWPP phases
Arabian United Power Company (AUPC / Arabian Power) – Fujairah / Abu Dhabi-linked IWPP vehicle
Al Shuweihat Power Company (ASPC / Shuweihat)
Taweelah United Power Company (TUPCO / Taweelah) – Taweelah A IWPP
Union Power Holding Company (UPHC / Union Power) – Jebel Ali/ Taweelah-linked holding/ SPV
Oman Utilities Sector
Authority for Public Services Regulation (APSR)/ Public Services Regulator Oman/ ERWRA
Nama Holding S.A.O.C. (Nama Group/ NAMA)
Nama Power and Water Procurement Co. (NPWP/ PWP)
Nama Electricity Distribution Company (NEDC)/ Nama Distribution
Nama Supply Company (NESC/ Nama Supply)
Nama Water Services (NWS)
Nama Shared Services (NSS)
Oman Electricity Transmission Company (OETC)
Dhofar Integrated Services Company/ Nama Dhofar Services (BDS/ Nama Dhofar)
Mazoon Electricity Company
Muscat Electricity Distribution Company (MEDC)
Rural Areas Electricity Company (Tanweer)
Oman Power and Water Procurement Company (OPWP)
Oman Investment Authority (OIA)/ OIA Oman Utilities
Ministry of Energy and Minerals (MEM)
Hydrogen Oman (Hydrom)
Oman Environmental Authority/ Oman Environment Authority/ MECA Oman/ Environment Authority Oman EIA
Oman Gas Company (OGC)/ OGC Oman Gas Pipeline Regulator
OQ Gas Networks (OQGN)/ OQ Gas Network
Civil Aviation Authority (CAA Oman)
Telecommunications Regulatory Authority / TDRA Oman
Mwasalat/ Oman National Transport Company
Australia Energy Utility Sector
Australian Energy Regulator (AER)
Independent Pricing and Regulatory Tribunal (IPART)
Economic Regulation Authority (ERA), Western Australia
Essential Services Commission (ESC), Victoria
Australian Competition and Consumer Commission (ACCC)
TransGrid
Ausgrid
Jemena
Australian Energy Market Operator (AEMO)
Australian Energy Market Commission (AEMC)
Energy and Climate Change Ministerial Council (ECMC)
Queensland Competition Authority (QCA)
Office of the Technical Regulator SA (OTR)
Australian Competition & Consumer Commission (ACCC)
Clean Energy Regulator (CER)
Australian Communications and Media Authority (ACMA)
Tasmanian Economic Regulator (TER)
Utilities Commission Northern Territory (UCNT)
Energy Safe Victoria (ESV)
Australian Capital Territory utilities/ Economic regulator (ICRC)
New South Wales Department of Climate Change, Energy, the Environment and Water (NSW DCCEEW)
Best past work section
Team and Approach
Our team includes economists, consultation specialists, data analysts, and sector experts with direct experience in energy, environment, markets, and infrastructure policy. Projects are managed through agreed milestones and regular client engagement, providing transparency on progress and alignment with departmental objectives. Every output is independently reviewed and quality-assured before submission.
Our carefully chosen team embodies a culture of working together, emphasizing that teamwork is not just an idea but a fundamental part of our success.
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RAV Dashboard
Publications
Our publications reflect the depth of our work across regulatory finance and economics - from cost of capital analysis to consumer engagement and market design.
Our regulatory economics work spans multiple jurisdictions and sectors. The examples below illus trate how MCC has supported regulators and network companies through complex financial and policy decisions.
We use analytical tools and visual dashboards to make regulatory data accessible and transparent. These resources show how cost drivers, asset values, and price mechanisms evolve across markets.
Peer review of Ofwat's PR24 WACC
Cost of Capital - 10 Hot Topics
Excellence in Consumer Engagement - 10 Fundamentals
Episode 5: Privatisation of Severn Trent
Courses
Price Controls 210: UK Water Price Controls - On Demand Course Material
I was delighted that MCC's work was completed on time, and within budget, helping us deliver important changes and improvements, to the benefit of our stakeholders. MCC's report is published on the CCC website.
- Bea Natzler Team Leader at Climate Change Committee, UK
I am delighted to recommend MCC Economics. Specifically, I worked closely with PJ, who helped us with our Nuclear and CCUS projects. PJ helped us develop new policies and answer questions from our stakeholders. His support helped us deliver important changes and improvements, to the benefit of our stakeholders.
- Gordon Hutcheson Head of Nuclear Policy at Ofgem, UK
MCC Economics has helped us better understand the most important issues for our stakeholders, including: charges, shareholder returns, debt payments and inflation impacts.
- Leila N. Nasr Section Head at Department of Energy, Abu Dhabi
I am delighted to recommend PJ and his team at MCC Economics. We've been working together on National Policy Statements to help meet net zero targets for 2030 and 2050. We initially appointed to support us on offshore wind consultation analysis and have recently reappointed MCC Economics to undertake a larger consultation analysis role across all sectors, including hydrogen, CCUS and networks. I can confirm that PJ and his team have shown excellent spreadsheet skills, alongside very good project management, planning and analysis skills, helping us deliver important changes, and continuous improvements, to the benefit of our stakeholders.
- Amy McHugh Head of Environment in the Energy Infrastructure Planning Policy, UK
I am delighted to recommend PJ and his team from MCC Economics. They helped us with our price controls for Heathrow airport and for NATS (En Route) plc (the air traffic services provider). Specifically, the MCC team helped us deliver important changes and improvements to our financial models and supporting policy documents, to the benefit of our stakeholders.
- Dan Rock Head of Corporate Finance at CAA, UK
I am delighted to confirm that I worked with PJ on a retail project in 2015. The project helped stakeholders understand electricity costs and charges. Specifically, the project helped us explain to stakeholders, internally and externally, why electricity charges differed across the regions (GB, NI & Ireland). PJ was a key member on the project team, which helped deliver changes and improvements in the understanding of energy retail.
- Kevin Shiels Director at Utility Regulator, Northern Ireland
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