Regulatory Review and Shadow Modelling
Region: UK
Context
Incumbent operator required “shadow” regulatory cost models and advisory support to prepare submissions on regulatory costing/accounting topics (price controls, cost allocation, forecasting, cost of capital).
Approach
Developed parallel “shadow” cost models mirroring expected regulator methodologies; analyzed cost allocation principles, forecasting assumptions, cost of capital parameters; prepared detailed reports/presentations supporting submissions; engaged internal teams iteratively to refine assumptions aligned with likely regulator viewpoints.
Success story
Enabled operator to enter consultations with defensible models/analyses; increased confidence in submissions; facilitated constructive regulator dialogue; contributed to favorable outcomes by pre-empting/regulator concerns.
