Link Economics provides economic advice in the areas of infrastructure regulation, competition policy and pricing. We have a strong focus on quantitative economics that can be applied in practical commercial contexts, and on presenting complex economic and financial concepts in a manner accessible to a wide range of audiences.
Consultants at Link Economics have been heavily involved in the design and development of regulatory frameworks in Australia, New Zealand and Pacific Island countries that are capable of delivering long term benefits to consumers, while ensuring shareholders are appropriately compensated for their investments. Having worked for a wide range of clients, consultants at Link Economics can offer insights into the perspectives of regulated firms, users of regulated services and regulatory authorities. Consultants at Link Economics provide economic advice across a number of regulated sectors including telecommunications, electricity, gas, water, rail, post and aviation as well as to firms subject to retail price regulation.
Link Economics provides a wide range of regulatory services including:
- Design and implementation of regulatory building block models and commercial models;
- Advice and estimation of key inputs used in the regulatory process including the regulated rate of return, cost allocation methodologies, the estimation of depreciation, the calculation of operating expenses and the appropriate treatment of taxation and inflation;
- Advice on the design and development of incentive regimes; and
- Strategy and policy advice on key aspects of the regulatory framework.
Link Economics provides advice in relation to market reviews, conduct assessments, and the effects on competitive rivalry of structural changes such as mergers, acquisitions and changes in policy or regulatory settings. Link Economics’ consultants and associates have extensive experience in assessing competition matters across a number of jurisdictions and legislative frameworks, including in New Zealand, Australia, the US, Europe and the Pacific Islands.
Some of the specific services that Link Economics provides in relation to competition assessment include:
- Technical analysis of market definition and market power;
- Empirical and qualitative analysis of market conduct on competition;
- Preparation of written submissions and expert statements; and
- Engaging with competition authorities in relation to information requests and technical analysis.
Link Economics has extensive experience in designing pricing structures at both the retail and wholesale level aimed at delivering benefits to end-consumers while also considering outcomes for shareholders.
We can assist in the implementation of cost-based pricing to provide better signals to consumers of the costs they impose on the network, with the objective of reducing future investment expenses and prices.
We can also advise on the design of retail pricing structures that meet the needs of consumers in terms of simplicity and the ability to manage bills and business objectives in terms of cost recovery and achieving market growth.