Expertise
Regulatory cost assessment & efficiency
Economic regulators widely use cost assessment and efficiency benchmarking to assess the relative efficiency of regulated companies in the presence of information asymmetry. It is also used by regulated companies to demonstrate to the regulator that they are efficient relative to their peers.
CEPA is one of the leading cost assessment firms and we have supported a wide range of public and private sector clients in the UK and internationally.
The scope of our cost assessment expertise is broad. It includes:
- relative efficiency benchmarking using econometrics techniques;
- development of special cost factor claims to support business plan submissions;
- detailed bottom-up review and critique of company business plans;
- forecasting input price pressures relative to general inflation (i.e., real price effects);
- assessment of productivity improvements over time (i.e., ongoing efficiency);
- cost assessment input data preparation and analysis; and
- supporting companies and regulators during the price review process.
The context of different sectors is an important consideration when conducting cost assessment as it means that a 'one-size-fits-all' approach is unlikely to be appropriate in most cases. We use our extensive experience across multiple sectors to offer bespoke advice and recommendations that can stand up to critical scrutiny from other stakeholders. This is why our clients turn to CEPA again and again to address challenging cost assessment problems.
Regulatory cost assessment & efficiency News & insights
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