Efficiency analysis and benchmarking

Comparative efficiency analysis and benchmarking are central to effective price regulation and have been used extensively by regulators to inform their decisions. Although the mathematical techniques can appear complex and obscure, benchmarking is simply a technique for comparing the value for money offered by different operators. 

The tools we have developed, along with a well-established process for carrying out the benchmarking analysis in a regulatory context, have been applied across numerous benchmarking studies in the electricity, water and telecoms sectors. For example, we have undertaken assignments for UK water and sewerage companies to assess relative efficiency in the industry using both DEA and econometric techniques. We have also advised regulators and corporate clients in the energy and telecoms sectors on efficiency and benchmarking analysis in the UK, Germany, the Netherlands, Belgium, Austria, Poland, Scandinavia and South Africa.