Regulation is not just about controlling prices and service standards where competition is absent; it is also about encouraging innovation and investment from regulated companies whilst allowing emergent competition to flourish. Regulators are increasingly facing difficult questions about promoting new investment, whether that be in transmission capacity to support renewable electricity generation, leak-free water mains or high-speed Internet access for all. Old regulatory approaches are proving inadequate to these new challenges. Although customers need protection against the exercise of market power, incentives for competitors to invest in infrastructure should not be undermined. Equally, regulated firms need incentives to improve their own services, which depends upon anticipating sufficient return, particularly in cases where the investment is risky and the extent of subsequent take-up was uncertain.

DotEcon has extensive experience in supporting companies in dealing with regulatory authorities. We have assisted private companies (such as BT, Virgin Media and Vodafone) and industry groups (such as the UK Mail Competitors’ Forum) with responding to regulatory consultations and on appealing decisions. Our staff have provided expert reports in disputes before the UK Competition Appeals Tribunal, the European Commission and national courts. We have also worked for regulatory authorities such as the UK Office of Communications, the UK Office of the Water Regulator, the New Zealand Commerce Commission, the Irish Commission for Aviation Regulation and the European Commission, helping them in designing regulatory controls and assessing the impact of measures on competition and market development.

DotEcon’s regulatory services include:

  • analysing the economic impact of regulatory proposals, including quantitative modelling;
  • undertaking cost-benefit analyses and regulatory impact assessments;
  • assessing investment incentives;
  • advising on the setting of regulatory price controls and access pricing;
  • conducting efficiency reviews of incumbent operators and modelling the impact of regulatory price controls;
  • responding to regulatory consultations and assisting with appeals of decisions;
  • understanding and developing positions on regulatory issues; and
  • understanding the implications of current economic thinking on regulatory issues.

DotEcon is well placed to support clients in a range of regulated sectors including, amongst others, telecommunications, post, water, transport and energy. DotEcon staff have an in-depth knowledge of latest market and regulatory developments, and are at the forefront of the application of economic principles to new problems faced by both operators and regulators. DotEcon’s expertise in the allocation of scarce public resources is directly applicable to some of the most difficult problems facing regulated sectors, such as the allocation of electricity transmission licences.

Contact us for further information.