Regulatory Economics

Regulatory Economics

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.

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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.

15+

Publications

500+

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:

 

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.

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:

We focus on reducing client exposure to foreseeable policy, modelling and legal risks.

Benefits for clients

Example incentive performance evaluation and results

Example Review of Electricity Demand Forecasting Accuracy

Evidence in Action

Recent examples of our regulatory economics work include:

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 theAustralian Energy Regulator. Our work has included:

Organisations we Know Well

We are particularly familiar with the following entities.

UK Energy 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

UAE/Abu Dhabi utilities sector

Oman Utilities Sector

Australia Energy Utility Sector

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.

The way we work

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.

Case Studies

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.

Video Explainers

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
£38.62
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Price Controls 220: Australian Price Controls - On Demand Course Material
April 9, 2026
£45.62
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Price Controls 200: UK Energy Price Controls - On Demand Course Material
January 9, 2026
£38.62
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Price Controls 190: Ireland Price Controls - On Demand Course Material
May 9, 2026
£38.62
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Price Controls 180: UAE Price Controls - On Demand Course Material
April 9, 2026
£38.62
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Price Controls 170: Totex - On Demand Course Material
April 9, 2020
£38.62
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Price Controls 160: Incentive Mechanisms - On Demand Course Material
March 9, 2026
£38.62
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Price Controls 150: Opex Forecasting - On Demand Course Material
April 9, 2026
£38.62
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Price Controls 140: Capex Modelling - On Demand Course Material
April 9, 2026
£38.62
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Price Controls 130: Cost of Capital - On Demand Course Material
January 9, 2026
£33.22
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Price Controls 120: Building Blocks - On Demand Course Material
March 9, 2026
£33.22
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Price Controls 110: CPI-X and Regulation - On Demand Course Material
April 9, 2026
£33.22
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Price Controls 101: Price and Revenue Caps - On Demand Course Material
March 9, 2024
£33.22
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Natural Gas 101
April 9, 2026
£163.22
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Natural Gas 101 - On Demand Course Material
May 9, 2026
£33.22
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Utilities 101
April 9, 2026
£163.22
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Econometrics 101 - On Demand Course Material
February 9, 2026
£32.68
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Econometrics 101
April 9, 2025
£33.22
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Econometrics 150
March 9, 2026
£163.22
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Econometrics 110 - On Demand Course Material
April 9, 2026
£32.68
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Econometrics 105
January 9, 2026
£32.68
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Regulation 105
February 9, 2026
£163.22
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Regulation 102
May 9, 2026
£32.68
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Regulation 101
£163.22
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Econometrics 150 - On Demand Course Material
April 9, 2026
From £32.68
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Regulation 101 - On Demand Course Material
February 9, 2026
£32.68
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Dashboard Explainer Videos

Rates of Cost Decline Dashboard

Explore our Rates of Cost Decline Dashboard video to understand how fast do costs change for each energy technology.

Live Dashboards

Regulatory Asset Value Dashboard

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