Regulatory Economics

Regulatory Design and Tariffs

Regulatory Design and Tariffs

In over 40 years of service to energy companies, NERA has made many important contributions to both the theory and the practice of regulatory economics. Electricity and gas is being sold in many competitive markets around the world; at the same time there is continued and more sophisticated regulation of the wires and pipelines that convey electricity and gas from power generators and gas producers to consumers.

Our practice has served electricity and gas sector clients across the world including clients in almost all of North America, in many countries in Central and South America, in nearly all of the countries of the European Union and other major markets including Russia. We have worked for clients in Australia and New Zealand and in many of the countries in Asia. Our staff of professional economists has practical experience for example, working in the gas and electricity industries themselves and in key regulatory agencies and government departments.

NERA's consultants have a comprehensive knowledge of the economics of gas and electricity markets, industry structures and the methods of regulation used by government and regulators. As governments and other agencies pursue liberalization of gas and electricity markets around the world, expert economic advice is essential for an understanding of the benefits and costs of different policy options, the extent to which industry restructuring is desirable and the need for and most effective forms of regulation. NERA advises regulators, governments and industry on all these issues.

NERA has extensive experience with all aspects of pricing policy including the design of prices for consumers and particularly the design of rates or tariffs for the transmission and distribution of gas and electricity. For many years NERA has been sought as a leading authority on pricing and, through seminars and training programs, we have taught thousands of industry professionals how to design tariffs.

NERA also has extensive experience with particular aspects of pricing including marginal cost pricing as applied to electricity tariffs. NERA's method for estimating marginal costs set the industry standard in the United States when it was introduced in the late 1970s. NERA's method for estimating marginal costs has been continually updated and enhanced, incorporating more rigorous techniques for capturing time-of-use and geographic differences in costs and providing a sound basis for efficient delivery tariffs as well as charges for bundled service. This experience has been applied in many countries in Europe and Australia.

Name Title Location Phone Email
Dr. Christian Dippon Managing Director
Chair of NERA's Global Energy, Environment, Communications & Infrastructure Practice
Washington, DC
San Francisco
+1 202 466 9270
+1 415 291 1044
christian.dippon@nera.com
James Mellsop Managing Director Auckland
Wellington
Sydney
+64 9 928 3290
+64 4 819 2550
+61 2 8864 6536
james.mellsop@nera.com
Dr. Ramsey Shehadeh Managing Director New York City +1 212 345 6089 ramsey.shehadeh@nera.com
Kurt G. Strunk Director New York City +1 212 345 5035 kurt.strunk@nera.com
Veronica Irastorza Associate Director San Francisco
Mexico City
+1 415 291 1016
+52 (55) 59993110
veronica.irastorza@nera.com
Willis Geffert Senior Consultant Washington, DC +1 202 466 9293 willis.geffert@nera.com
Marta Moro Senior Consultant Madrid +34 91 521 0020 marta.moro@nera.com
Dr. William Baker Affiliated Consultant London +44 20 7659 8520 bill.baker.affiliate@nera.com
Dennis Colenutt Affiliated Consultant London +44 20 7659 8500 dennis.colenutt.affiliate@nera.com
Mike King Affiliated Consultant Denver
San Francisco
Washington, DC
+1 303 357 4781
+1 303 618 4915
+1 303 618 4915
mike.king.affiliate@nera.com
Dr. Hethie Parmesano Affiliated Consultant Los Angeles +1 213 346 3000 hethie.parmesano.affiliate@nera.com
Title Type Author
Asbestos: Economic Assessment of Bans and Declining Production and Consumption Report By Lucy P. Allen, Mary Elizabeth C. Stern, Jorge Baez, and Frank George
La Regulación de la Economía Colaborativa (Regulation of the Sharing Economy) Book By Bruno Soria
Trends in Regulatory Enforcement in UK Financial Markets 2015/16 Year-End Report Report By Robert Patton and Erin McHugh et al
Determining the Weighted Average Cost of Capital of Airports in an Evolving French Re... Working Paper By Jeanne Lubek and Stéphane Wakeford
FERC Order 1000 and Public Policy Transmission Projects Published Article By Sandra Ringelstetter Ennis et al.
RPI-X@20: A Plan for Regulatory Regime Change Published Article By Graham Shuttleworth
EU ETS: Rising to the Challenge Book Chapter By Daniel Radov
Review of the Proposed Gas Exit Arrangements: A Report for the Gas Forum Report By Graham Shuttleworth and former NERA Associate Director David Hough with TPA Solutions Ltd.
Portable Entitlements: Unlikely to Resolve Transition Dilemma Published Article By Dr. Hethie Parmesano
FERC Imposes New Constraints On Utility Procurement Published Article By Kurt Strunk et al.