We understand the system of price controls and incentives applied to the investor-owned water companies in England and Wales, as well as some experience in relation to the regulation of a State-owned company in Scotland.
We have a broad knowledge of UK infrastructure price controls. In the water industry specifically, we have hands-on experience of the econometric and non-econometric techniques for comparative efficiency analysis and for determining the scope for future efficiency improvements.
This includes the use of total factor productivity (TFP) analysis, regression analysis, data envelopment analysis (DEA), stochastic frontier analysis (SFA) and time series cross sectional panel data analysis.
We also have experience of providing advice on financial issues (cost of capital and financeability) in the water sector.
Our skills in data analysis also enable us to assist companies, regulators and others with a wide range of periodic review tasks, for example econometric techniques for demand forecasting.
We have taken an interest in competition law disputes about charges and terms and conditions for third-party access to the facilities of incumbent water companies, and the interpretation of the access pricing principles in the Water Act 2003 for England and Wales.