Regulation

Energy / Financial Services / Media & Telecoms / Transport / Auctions, Procurement and Mechanism Design

CEG economists have extensive experience in helping firms formulate and present economic arguments and evidence during market investigations, court hearings, public consultations and other regulatory proceedings. Our expertise spans a range of regulatory matters including access arrangements, regulatory design and reform, market analysis, structural separation, network sharing, access to content, cost of capital analysis, and LRIC modelling.

  • The UK Competition Commission inquiry on payment protection insurance
  • Various market reviews under the European Regulatory Framework for Electronic Communications including for broadband, mobile access and origination and mobile termination as well as in appeals for regulatory decisions
  • The UK Competition Commission inquiry on Northern Irish banking
  • The UK Competition Commission inquiry on mobile termination charges
  • The European Commission investigation into international mobile roaming charges
  • The European Commission investigation of regulation 4056 / 86 concerning liner conference agreement

Energy

CEG economists have advised in all energy sectors, including electricity, natural gas, nuclear and oil. We have particular expertise in asset valuation, cost modelling, competition assessments, analysis of alleged anti-competitive pricing, access arrangements, cost of capital, competition assessments, regulatory design and energy market reform.

  • Advice on the potential acquisition of British Energy for one of the world's leading electricity utilities
  • Benchmarking of efficient costs for energy businesses for various clients
  • Expert advice on the appropriate cost of capital for various regulated energy businesses
  • Expert statement for Envestra on the economic reasonableness of alleged related party contracts for outsourcing of the management of gas distribution assets
  • Expert advice on whether pricing by a dominant gas transmission pipeline owner constituted the exploitation of market power and, consequently, whether regulation should be imposed
  • Expert advice to owners and regulators on the appropriate valuation of existing gas pipelines newly subject to regulation

Financial Services

The financial services sector is wide-ranging, including services such as banking, pensions, insurance, other financial intermediaries (e.g. unit trusts) and auxiliary services (e.g. fund management). It is one of the most important sectors in the UK - prior to the financial crisis, the sector grew at double the average rate of the whole economy. The sector poses interesting economic challenges such as two-sided markets (payment systems) and asymmetric information, for which economic analysis can provide insightful tools. CEG has built up a successful track record in several of the sub-sectors including banking, insurance, payment systems and pensions.

  • Advised on future regulations of the UK payments system
  • Input to the UK Competition Commission inquiry on payment protection insurance
  • Input to the UK Competition Commission inquiry on Northern Irish banking
  • Advised on aftermarket issues in insurance markets
  • UK Court case involving credit cards (for plaintiff)
  • Expert report and testimony in an ICC proceeding involving two international insurance companies

Media & Telecoms

CEG experts provide advice to some of the world’s leading telecoms and media companies, their legal advisers, and regulators. CEG’s economists are sector experts – with detailed knowledge of the communications markets and regulatory arrangements across the jurisdictions in which we work. We use this expertise to assist our clients to meet the challenges posed by this dynamic and at times unpredictable environment, providing support and advice on regulatory issues as well as competition and spectrum policy and licensing, disputes and state aid. Our expertise spans a range of regulatory matters including access arrangements, regulatory design and reform, market analysis, price setting including LRIC modelling and cost of capital estimation, structural separation, network sharing and access to content.

  • Advice to EIR on ComReg's wholesale access service market review
  • Reports for GSMA on a range of regulatory issues including resetting competition policy for the Digital Ecosystem, IP interconnection, the European Commission's regulation of international mobile roaming charges, the Directive concerning termination rates and the liberalisation of international gateway services
  • Advice to T-Mobile Netherlands in its appeals of the use of pure LRIC for mobile termination charges
  • Advice to Australia's National Broadband Network on the preparation of a price undertaking for fibre services
  • Advice to EE on annual fees for spectrum licences
  • Advice to T–Mobile UK on network sharing agreement with H3G

Transport

Transport industries are undergoing substantial change with regulatory oversight and competition law significantly impacting firms' abilities to adapt to new business environments. CEG is one of the leading advisors on regulatory and competition issues across the transport sector. We have advised on a range of regulatory and competition issues affecting ports and shipping, airports and aviation and rail transport. Our particular areas of expertise include access arrangements, regulatory design, overall regulatory reform, market definition, competition assessments, and analysis of alleged anti-competitive pricing.

  • Advice on Commission review of Regulation 4056/86 for European Liner Affairs Association (major lines)
  • Expert reports on the cost of capital for coal port infrastructure for Babcock and Brown Infrastructure
  • Review of Commission Block Exemption on IATA interlining, for IATA
  • Advice on pricing structure and strategy for air navigation services for Airservices Australia
  • Advice to Rail Access Corporation on the appropriate hurdle rates of return to be applied when assessing competing investments in rail track related infrastructure
  • Advice on pricing structure and strategy for air navigation services

Auctions, procurement and mechanism design

CEG has a dedicated expert team uniquely positioned to advise clients in the private and public sector on complex mechanism design in real world sales and procurement processes. Our experts contribute to the academic literature on auctions and applied mechanism design and apply their knowledge to real world issues facing business when applying economics to real world regulatory and mechanism design.

In our practice we advise clients in preparing, designing and participating in auctions. We assess, from an economic perspective, reforms in public procurement, tenders competitiveness and ex-post assessment efficiency. We contribute to complex merger clearance by assessing the competitiveness of bidding market against changing market structure.

We are leaders in applying economics to telecom spectrum auction. We understand how to apply economics to successfully implementing auctions in specific markets, devising simulation and bid tracking tools, influencing the regulatory process determining the rules, and assisting auction participation and effective process governance. Our track record speaks for itself.

In other sectors we advise EU manufactures and distributors of various services and products (insurance, homecare, medical gases, food and beverages) on competition investigations in alleged bid rigging and more generally on assessing the competitiveness of tenders design and actual perfomance.

  • Consultancy to a European provider of medical devices on the alternative regimes for public procurement of medical devices
  • Consultancy to SFA Airports of Milan in the assessment of tender for the sub-concession for the whole general aviation in the Linate airport in a case before the ICA (alleged dominance abuse)
  • Advice to a national plastic recycling consortium on auction design for recycled materials
  • Expert witness statement for KPN on the Dutch CCA 4G of 2014
  • Consultancy to Deutsche Telekom Germany, auction strategy for participation in the most recent SMRA spectrum auction - 700 MHz & other bands auctions
  • Consultancy to T-Mobile Czech Republic SMRA multiband 2016 auction: bidding strategy and auction tools
  • Consultancy to EE in the "ALF" UK Telecom regulator's consultation, analysis of economic literature and previous auction results interpretation
  • Expert Report for Telefonica on the efficiency of the UK 4G CCA auction
  • Mobile Czech Republic SMRA 2013 4G Auction Strategy support and auction tools
  • Cosmote Romania, SMRA 4G Auction Strategy support and auction tools
  • Mobile Netherlands, CCA 4G Auction Strategy and auction tools, valuations peer review
  • Advice to T-Mobile Austria on Auction Strategy in the 2.6 GHz auction and auction tools and to Ziggo Joint Venture on auction strategy in the Dutch 2.6 GHz Spectrum Auction
  • Report to the Dutch Parliament on the 3G spectrum auctions efficiency