What we do
We help clients with economic regulation, competition law and data analysis.
Our services include advice, detailed consultancy and research reports, development of models and analytical tools, as well as flexible support to clients in the delivery of their internal work programmes.
We are used to working closely with - or as part of - our clients’ project teams.
We have worked for clients including:
UK regulators such as the CMA, Ofgem, Ofwat, the Utility Regulator, the ORR, and the Gambling Commission.
Regulated companies such as Anglian Water, Severn Trent, United Utilities, Wessex Water, Scottish Power and SSE.
Industry bodies such as Water UK, UKWIR and the ENA.
Consumer bodies such as CCWater.
The areas that we work across
Some examples of our project work
Accelerating electricity transmission investment
In 2022/23, Reckon supported Ofgem in developing a regulatory framework for the accelerated delivery of transmission network infrastructure upgrades worth £20bn needed to allow the connection of 50GW of new offshore wind generation by 2030. This included the development of a new and streamlined regulatory funding approval process so that transmission licensees have access to funding when it is needed, a new timely delivery incentive mechanism to help ensure that the network upgrades are delivered on time and uncertainty mechanisms that allow funding to be flexed up or down as the scale and need for investment evolves over time.
In 2023, Reckon provided support to Ofgem on potential regulatory models for hydrogen transport pipelines. We developed options for how hydrogen pipelines could be regulated, including a potential regulatory asset base (RAB) mechanism in conjunction with measures to manage risk exposure to investors, customers and other stakeholders. We assessed the feasibility of implementing different options under the existing GB legislative framework and identified areas for potential legislative change. We also developed a simplified financial model that illustrates the application of a potential integrated price control and subsidy model.
Water company price reviews (PR19 & PR24)
Regulatory models for hydrogen pipelines
Over the period 2016 to 2020 we carried out a number projects concerning Ofwat’s PR19 review of water company price controls for the 2020-25 period, including on the development of econometric cost benchmarking models, support with RCV allocation, analysis of RCV run-off rates and a peer review of a company’s business plan submission.
Since 2021, we have been supporting a number of water companies during the PR24 process, including on cost assessment (wholesale and retail), performance commitments and ODIs, operational resilience, uncertainty mechanisms and business plan quality.
National Lottery licence competition
The UK National Lottery is operated by Camelot, under a licence that expires in 2024. The Gambling Commission is responsible for running a competitive process to award the next licence, and for the subsequent regulation of the appointed operator. We provided advice and support to the Gambling Commission as it developed its policy for the licence competition. We helped in particular with the design of new remuneration and incentive arrangements, to better align the operator’s commercial incentives with the money raised for good causes, and with the establishment of a more outcomes-focused regulatory framework.
Between 2018 and 2021, we supported the Utility Regulator (UR) throughout its work programme to put in place new price control arrangements for the Northern Ireland electricity system operator (SONI) for the 2020-25 period. This ranged from the UR’s initial consultation on its approach to the price control review, through to final determinations and associated guidance documents. We helped the UR to introduce fundamental reforms to the price control framework, including a new approach to encouraging improved performance across the various services that SONI provides. We also provided advice and analysis on the cost of capital, balance of risk and return, and financeability.
