Liberalisation

Introducing competition into a market that was formally dominated by a monopoly provider is an area where regulatory economics plays an important role. We have been actively involved in assessing whether there is the potential for competition within a market; advising on the best way to introduce competition, particularly when it is necessary to safeguard a Universal Service Obligations (USO) that the incumbent may be expected to maintain; and evaluating whether and when competition is sufficient to allow the deregulation of prices within that market.

In Australia, the Frontier Economics team has developed and implemented comprehensive pro-competitive electricity reform programs on behalf of the Queensland, New South Wales and West Australian Governments. For the reform process in Queensland and New South Wales Frontier staff are in the unique position of designing the reform proposals and then subsequently working alongside government to implement these.