We have experience of drafting or reviewing various aspects of price control licence conditions, including the algebraic expression of performance incentive regimes. This expertise also applies in the context of franchising.
Reckon reviewed the algebra contained in licence conditions to implement Ofgem's most recent reviews of electricity transmission and distribution charges.
This expertise at the practical end of implementation complements our skills in the economic and incentive aspects of setting and reviewing price controls.
We can tie in this work the practical level with our higher-level analysis of policy, economics and incentives, ensuring that the policy and commercial intentions are correctly converted into practical facts on the ground. This addresses the risk of incentive schemes that look good in theory but have no effect because the necessary calculations cannot be done, or which do not affect behaviour because almost no-one understands them.