We know the issues, the people and the systems.
Economics Advisory
Economic regulation provides an important opportunity for water businesses to deliver value to their customers and community and ensure financial sustainability.
We undertake economic appraisal, develop business cases, and design economic regulation and pricing/tariff structures based on deep expertise, advanced analytical techniques and economic models.
Evolving customer needs and community expectations, ageing assets, new technologies, climate change and variability in supply are just some of the challenges faced by the industry.
Governments and the private sector are constantly required to maximise the benefits from the limited resources at their disposal and justify their decisions. Economics plays a critical role in ensuring that limited resources are put to best use.
This leads to a situation where utilities must often consider trade-offs between keeping prices low and meeting regulatory requirements, delivering against service levels and evolving customer preferences, and meeting expanding obligations and expectations from government.
Water businesses that understand and prepare for these challenges will be more resilient and better placed to deliver outcomes and services efficiently.
In this changing landscape it has never been more important for water businesses to ensure they have the right strategic direction and the upcoming price submission and regulatory review processes enable them to implement this strategic direction.
Our Services
We are experts in economic and financial investment appraisal, including cost-benefit analysis and cost-effectiveness analysis. We are able to quantify the full range of economic, social and environmental benefits and costs using market and non-market valuation techniques. Our investment appraisals are robust and evidence-based and help to demonstrate the merits of different investment options. We prepare business cases that are clear, compelling and supported by sound investment logic.
Investment and policy decision making is challenging. There are often numerous options available to address a problem or realise an opportunity, multiple sources of uncertainty, a variety of tangible and intangible benefits and costs and complex stakeholder considerations. Aither draws on the latest methods in economics and data science to provide clear and actionable evidence for decision makers. Our economic analysis is improving the timing and scale of investments and policy decision making, resulting in better customer and community outcomes.
We understand the complexities of economic regulation frameworks and what mechanisms are required to ensure the most appropriate outcomes can be realised. Different frameworks may be necessary for different jurisdictions and/or circumstances.
Ricardo are international leaders in market design and analysis, working across natural resource markets such as water and biodiversity. We provide advice on when to introduce markets and how to design markets to achieve the best outcomes for communities. We are also experts in market trends and predictions, as well as the impacts of drivers, such as commodity prices, government policies and climate change. Our analysis is backed by advanced quantitative tools and a detailed understanding of natural resource markets.
As the commercial opportunities associated with water markets and infrastructure expand, there is a growing need for rigorous advice grounded in a practical understanding of water markets and infrastructure. We are leading providers of commercial advice including:
- Portfolio valuations
- Portfolio strategy
- Due diligence
We are easy to work with and committed to delivering great outcomes
Our experienced and multi-disciplinary team works closely with water businesses, economic regulators and governments to develop and implement improved approaches to economic regulation, pricing and customer outcomes.
Our experts
Our team of 14 water industry professionals across a multi-functional skill set and expertise – one of the largest pricing and regulation consulting teams in Australia.
Let's have a chat
We want to help you make better decisions - talk to our expert team today