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Price reviews
There are few things more fundamental to a business than the price it can charge for its product. In addition, ensuring that customers get the best long-term deal from a price review is one of the key objectives for a regulator.
We have provided assistance with the high level strategic thinking that should underlie either party's approach to a price review. In particular, we can provide rigorous economic thinking and a creative external perspective to assist the company, or regulator, in defining its strategy. We also provide support in undertaking the detailed analysis that is required in any review. This covers activities such as efficient incentive design, the form of the price control, RAB versus cashflow approaches, cost of capital estimation, asset valuation, efficiency and productivity analysis and investment appraisal.
Our experience covers work for both regulators and regulated companies and covers every major regulated industry. Clients have included electricity distribution companies and water companies in England and Wales, Bord Gais Eireann, Vodafone, RWE, Ofgem, Postcomm and Aer Lingus. Frontier has represented a number of the UK companies during price control related Competition Commission cases.
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