Dr. Richard Hern

Managing Director


Tel: +44 20 7659 8582
Fax: +44 20 7659 8501

Tel: +49 30 700 1506 01

Email: richard.hern@nera.com
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PhD in economics, Bristol University
MSc in economics and public policy, Bristol University
BSc in economics and mathematics, Bristol University


Dr. Hern is a Managing Director in NERA’s London and Berlin offices. He is a member of NERA’s Board of Directors and leads the firm’s regulatory finance team in London. Dr. Hern also co-leads NERA’s global International Arbitration Practice.

Dr. Hern has over 22 years of experience as an economist, expert witness, and quantum of damages expert providing testimony and advising clients across the world. Dr. Hern’s experience spans investor-state and commercial disputes, and international arbitration. He has prepared expert testimony on a range of economic and finance issues, including commercial damages, company valuations, valuations in the context of political intervention, lost profits from construction delays, cost of capital and profitability assessments, and economic regulation. He has acted as an independent expert witness on economic and quantum issues before many panels and tribunals, including ICSID, PCA, ICC, UNCITRAL, the UK Competition and Markets Authority (CMA), international courts, and high courts.

Dr. Hern’s experience as an economist and damages expert spans many different industries, including power, water, airports/airlines, shipping, telecoms, petrochemicals, and real estate. 

He is one of the leading valuation and damages experts identified in Who’s Who Legal: Arbitration and Who’s Who Legal: Consulting Experts – Quantum of Damages.

He has also acted as an independent expert to rule on appeals of tariff reviews by privatized utility companies. He advised the World Bank on transparency guidelines for utility regulators in Africa and mechanisms to reduce regulatory and political risk in developing countries.

Dr. Hern has specialist expertise on the estimation of country risk for valuation and quantum calculations in emerging markets. He has published on risk and the cost of capital in utility and trade journals, and authored books on best practices in estimating the cost of capital for infrastructure assets.

Title Type Author
The Cost of Equity for Utilities – An International Perspective Presentation Dr. Richard Hern
Hurdle Rates and the Cost of Capital for Financing Electricity Generation in the UK Study By Dr. Richard Hern, Daniel Radov, Marija Spasovska, Jinzi Guo, et al.
Use of Inflation Indices in Water Sector Report By Dr. Richard Hern, Dr. Bill Baker and James Grayburn
Estimation of BT's Equity and Asset beta Report by Dr Richard Hern and Dominik Hübler
Changes in Hurdle Rates for Low Carbon Generation Technologies due to the Shift from ... Report By Dr. Richard Hern, Daniel Radov, et al.
Expert Report Dr. Richard Hern
Critique of Report for the NMa on the Cost of Capital Report By Graham Shuttleworth, Dr. Richard Hern, and Dominik Huebler
The Cost of Capital for Merchant Power Generation: The Example of Drax Brief By Tomas Haug and Dr. Richard Hern
Area Cost Adjustment: A Response to the Department for Communities and Local Governme... Report By Dr. Richard Hern with Professor David Blanchflower of the Dartmouth College Department of Economics
The Evidence for a Small Company Premium on the Cost of Capital at PR09 and A Review ... Report By Dr. Richard Hern, Tomas Haug, Anthony Legg, Mark Robinson, Dominik Huebler, and Svetlana Shcherbakova