Electricity distribution price control review (2002-2004)
Reckon LLP and its staff have experience of advising electricity distribution companies in Great Britain on several aspects of the periodic review of their price limits from 2005.
The main streams of work have included:
- review and assessment of Ofgem's approach to comparative efficiency analysis;
- advice on methods to estimate the potential for industry-wide efficiency improvement;
- the use of comparative efficiency models to set projections of expenditure requirements (efficiency targets);
- training utility company staff in the use of comparative efficiency techniques;
- advice on econometric models of load-related capital expenditure requirements;
- advice on menu regulation proposals;
- advice on the design and implementation of incentive regimes for efficiency and for quality of service;
- analysis of financial risks arising from quality of service incentives, using a Monte Carlo simulation; and
- critical review of Ofgem's draft algebra to be incorporated in the price control licence conditions to implement the outcome of the price control review.
Reckon LLP is an economics consultancy with expertise in data analysis, economic regulation and competition law.