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Dr. Richard Hern

Managing Director

Contact

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

Berlin
Tel: +49 30 700 1506 01

Email: richard.hern@nera.com
vCard: Download

Education

PhD in economics, Bristol University
MSc in economics and public policy, Bristol University
BSc in economics and mathematics, Bristol University

Experience

Dr. Richard Hern is a Managing Director in NERA’s Energy Practice, based in London. He leads the firm’s regulatory finance team and co-leads the International Arbitration Practice. He is also a member of NERA’s Board of Directors. Dr. Hern has nearly 25 years of experience as an economist, expert witness, and quantum of damages expert, providing testimony and advising law firms, utility companies, and governments throughout the Middle East, Europe, the US, Asia, and Latin America. His experience spans investor-state and commercial disputes, and international arbitration. He has prepared expert testimonies on a range of economic and finance issues, including commercial damages, business valuations, valuations in the context of political intervention, lost profits from construction delays, cost of capital and profitability assessments, and economic regulation.

Dr. Hern has acted as an independent expert witness on economic and quantum issues before many panels and tribunals, including the ICSID, PCA, ICC, UNCITRAL, the UK Competition and Markets Authority (CMA), and several other international courts and high courts. His work spans many industries, including power, water, transport (airports/airlines shipping and toll roads), infrastructure, telecoms, petrochemicals, and real estate. 

He has been identified as one of the leading valuation and damages experts in Who’s Who Legal: Arbitration and Who’s Who Legal: Consulting Experts – Quantum of Damages where he is described by his clients as “a leading damages and valuations expert with experience of commercial, investor-state and international arbitration.”

Dr. Hern 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. He has also acted as an independent expert to rule on appeals of tariff reviews by privatized utility companies and has advised the World Bank on mechanisms to reduce regulatory and political risk in developing countries. He has taught economics and finance courses at Bristol University and Bath University and is a regular speaker at conferences in the UK and abroad. He holds a PhD in economics from the University of Bristol. 

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