Dr. Richard Hern
Director
Education
PhD in economics, Bristol University
MSc in economics and public policy, Bristol University
BSc in economics and mathematics, Bristol University
Experience
Dr. Hern is a Director in NERA's London and Berlin offices and leads NERA's Regulatory Finance team in London. He has over 12 years' experience with private sector consulting, following university research and teaching. He has directed and managed projects on competition, pricing, financing, and valuation for many businesses, regulators, and public sector bodies worldwide.
Dr. Hern is a particular specialist in cost of capital estimation for use in regulatory price reviews. He has also published articles on regulation and finance in a variety of utility and trade journals and is the author of a NERA report on regulatory risk, published by the UK National Audit Office. Dr. Hern has also advised the UK Competition Commission on cost of capital estimation techniques, profitability analysis, and the estimation of the impact of regulatory risk. He has extensive experience with providing advice to both utility operators and regulators worldwide on cost of capital and financing issues in price reviews.
Dr. Hern has advised clients on competition policy matters involving profitability analysis, including confidential matters such as excessive pricing complaints and state aid complaints. He was also NERA's lead advisor to a major UK water company regarding the development of access pricing arrangements under the 2000 Competition Act.
Internationally, Dr. Hern has worked in over 20 countries for regulators, governments, and the World Bank. In 2004, Dr. Hern was appointed the Independent Expert to rule on an appeal by Belize Water Services against the price decision by the Public Utilities Commission of Belize. In 2004-05, Dr. Hern directed a team of engineers and economists to conduct the first full tariff review for a major water concession in San Pedro Sula in Honduras. Dr. Hern has also advised the World Bank on the formulation of Regulatory Transparency Guidelines for utility regulators in Africa, and mechanisms to reduce regulatory and political risk in developing countries. He has prepared expert testimony in a range of commercial arbitrations and litigation cases including disputes before ICSID and the Vienna International Arbitral Centre. These cases have involved contractual disputes, expropriations, and commercial damages in countries including Belize, Greece, Honduras, Tanzania, Singapore, Turkey, and the United Kingdom.
Dr. Hern has taught regulatory economics courses at Bristol University and Bath University and is a regular speaker at conferences in the UK and abroad.
