MCC delivered a comprehensive and collaborative review of UKEF’s product development approach, incorporating both quantitative benchmarking and qualitative insights from a wide network of international financial institutions. Our contributions included:

Strategic Design and Stakeholder Engagement

Designed a robust benchmarking questionnaire in collaboration with UKEF’s board and senior stakeholders, covering areas such as:

• Digital integration
• Customer centricity
• Governance and approval flows
• Cost-benefit analysis
• Innovation and agility in product development​

Comparative Analysis and Key Findings

Found UKEF’s governance to be in line with its peers, particularly in:

• Risk management
• Separate sign-off procedures
• Following formal processes for approval and modification​

Identified areas with potential for improvement, including:

• Customer engagement and feedback loops
• Use of digital tools and automation
• Application of structured product development frameworks like Agile or BAH models​​

Highlighted best practices from comparators, such as:

• Annual customer ideation forums (BPIFrance)
• Digitalisation of processes (SACE S.p.A.)
• Agile sprints for product innovation (EDC and NatWest)​
• Deliverables and Recommendations

Deliverables and Recommendations

Delivered a formal benchmarking report summarising findings and strategic recommendations for the UKEF Board, Internal Audit team, and Product Directors.

Recommended that UKEF:

• Strengthen digital integration during early product design stages
• Capture and apply structured customer feedback more effectively
• Consider piloting and iterative design models where appropriate
• Align internal review mechanisms with academic models such as Stage-Gate or BAH frameworks​

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MCC played a pivotal role in reviewing, analyzing, and synthesizing the consultation responses, delivering:

1. Thematic and Quantitative Analysis of Stakeholder Responses

• Processed and categorized thousands of responses, identifying recurring themes and stakeholder concerns.
• Analyzed sentiment and trends, determining whether responses were urging action, supportive with reservations, or providing advice.
• Extracted insights from key questions, including:
  • Environmental mitigation and compensation strategies.
  • Planning, consent, and licensing considerations.
  • Grid coordination and offshore wind network design.
  • Impacts on aviation, shipping, and other seabed users.

2. Expert Policy Engagement and Recommendations

• Led expert discussions with DESNZ to interpret consultation findings and assess policy implications.
• Mapped out stakeholder positions on controversial issues, such as:
  • The balance between offshore wind expansion and environmental protection.
  • The role of multi-purpose interconnectors (MPIs) and grid coordination.
  • The impact of aviation radar interference and maritime navigation.
• Provided strategic policy recommendations, ensuring that DESNZ’s approach aligned with net-zero targets, energy security goals, and regulatory best practices.

3. Final Government Consultation Report

• Authored a structured, data-driven report summarizing the consultation results.
• Highlighted key takeaways, including stakeholder sentiment distribution and areas requiring further policy refinement.
• Outlined government response options, helping DESNZ refine the Offshore Wind NPS (EN-3) for future implementation.

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MCC played a lead role in managing the consultation response process, delivering:

1. Project Management & Stakeholder Coordination

• Developed and managed all project collateral, including project plans, timelines, methodology documentation, and budget schedules.
• Led communication with DESNZ, providing weekly progress reports and acting as the central touchpoint for project updates.
• Resourced and coordinated the MCC project team, ensuring efficient workflow and division of tasks.

2. Data Processing & Quality Assurance

• Processed and reviewed thousands of responses submitted via Citizen Space and email.
• Conducted extensive data cleansing, removing duplicates, correcting formatting errors, and ensuring all submissions were properly recorded.
• Developed a master data table to consolidate stakeholder responses into a structured and searchable format.

3. Advanced Thematic & Quantitative Analysis

• Performed thematic analysis to categorize responses into key policy areas, assessing levels of support and areas of concern.
• Conducted quantitative analysis for closed questions, measuring statistical trends across respondent groups.
• Utilized Python-based data extraction techniques to streamline the analysis process and extract insights from text, PDF, and Word submissions.

4. Expert Policy Evaluation & Government Engagement

• Led discussions with DESNZ policy teams, providing in-depth insights on stakeholder positions and potential policy adjustments.
• Mapped out key areas of regulatory alignment and divergence, highlighting stakeholder concerns on net-zero commitments, energy security, and infrastructure development.
• Provided strategic recommendations on balancing economic, environmental, and energy priorities within the NPS updates.

5. Final Report & Government Response Preparation

• Authored the final consultation report, presenting a structured, data-driven summary of public and industry feedback.
• Developed government response templates, ensuring DESNZ could communicate policy decisions effectively.
• Proofread and formatted final NPS documents.

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MCC played a critical role in leading the consultation analysis, delivering:

1. Comprehensive Data Processing & Review

• Processed 55,000+ responses, including standardized campaign submissions and unique stakeholder inputs.
• Used data extraction techniques, including Python-based processing, to organize and categorize responses efficiently.
• Reviewed evidence cited in responses, ensuring that all claims were cross-checked with reliable sources.

2. Thematic & Quantitative Analysis

• Conducted thematic analysis to identify major areas of support and opposition across key questions.
• Summarized closed-question responses, highlighting the percentage of respondents supporting different checkpoint tests.
• Analyzed stakeholder perspectives on the Paris Agreement, energy security, investment risks, emissions benchmarks, and economic impact.

3. Policy Insights & Reporting

• Authored the final government consultation report, providing structured summaries of stakeholder positions.
• Outlined key areas where industry and public perspectives aligned or conflicted, allowing DESNZ to refine its policy approach.
• Provided recommendations on policy trade-offs, balancing climate concerns, energy security, and economic considerations.

4. Addressing Key Consultation Themes

Through our analysis, we identified key recurring themes in responses, including:

• Climate concerns: Many respondents cited the Paris Agreement, Climate Pact, and Net Zero commitments, arguing against further licensing.
• Energy security arguments: Some respondents supported continued licensing, emphasizing domestic production over reliance on imports.
• Checkpoint test criteria: Varied opinions emerged on how licensing decisions should be assessed, with debates on Scope 3 emissions, international benchmarking, and sector progress in energy transition technologies.

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MCC played a pivotal role in helping NATS and the CAA strengthen their financial models, delivering:

1. Comprehensive Model Review for NATS
   • Conducted an in-depth analysis of the traffic-risk-sharing mechanism and the model’s response to COVID-19-related traffic declines.
   • Identified 382 issues for NATS to investigate, highlighting areas where calculations and methodologies needed improvement.
   • Recommended new methods and updated data sources to ensure more accurate forecasting and decision-making.
2. Board-Level Analysis and Recommendations
   • Reviewed key board presentations and conclusions to verify that they were supported by reliable model calculations.
   • Suggested methodology updates and refinements to improve the financial model’s credibility and accuracy.
3. Support for CAA’s NR23 Price Control Model
   • Assisted the Civil Aviation Authority in designing, reviewing, and modifying a new model for NATS’ price control process.
   • Addressed financial model deficiencies that had delayed NR23 by six months, helping to bring the process back on track.
4. Best Practice Implementation
   • Recommended model updates using industry best practices, ensuring future reliability and transparency.
   • Advised on the latest data sources and input methodologies to strengthen financial forecasting.

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MCC played a critical role in supporting TWP’s bid submission strategy by delivering:

1. Development of a Custom CfD Bid Model
   • Built a financial model from scratch to determine the optimal CfD strike price.
   • Accounted for two separate offshore wind farms, each utilizing distinct technologies (floating and fixed-foundation).
   • Integrated project-specific costs, revenue forecasts, and operational assumptions to reflect real-world conditions.
2. Comprehensive CfD Mechanism Analysis
   • Conducted a detailed review of the CfD framework to ensure full compliance with auction requirements.
   • Evaluated bid submission strategies based on government auction pricing trends and industry benchmarks.
3. Scenario Analysis and Financial Forecasting
   • Sourced relevant operational and financing inputs to ensure accuracy in cost projections.
   • Designed a scenario analysis tool to test multiple assumptions, providing TWP with a flexible and data-driven decision-making framework.
   • Modeled the impact of financing structures, cost variations, and energy output fluctuations on the strike price.
4. Bid Optimization Based on Target IRR
   • Calculated the CfD strike price based on the project’s target internal rate of return (IRR) to ensure financial viability.
   • Provided strategic recommendations to enhance bid competitiveness while balancing risk and return.

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MCC played a critical role in streamlining the Offshore Wind Leasing Round 4 ITT Stage 2 process by delivering:

1. Custom-Built Automated Bidding Tool
   • Developed a dynamic, real-time tool for identifying Preferred Bidders and Preferred Projects during multi-cycle bidding.
   • Designed the tool to handle live auctions, bid assessments, and selection processes seamlessly, ensuring fair and transparent decision-making.
2. Contingency Planning for Non-Standard Events
   • Mapped out potential bidding anomalies and process disruptions to ensure TCE could handle unexpected scenarios.
   • Created automated safeguards and fallback procedures within the tool to manage deviations from standard bidding cycles.
3. Operational Guidance and User Documentation
   • Produced a comprehensive tool guide to assist TCE’s bidding team in using the system effectively.
   • Provided training materials to ensure seamless adoption and execution during the live leasing process.
4. Strategic Advisory for Offshore Wind Development
   • Positioned MCC as a key advisor to regulators and offshore wind developers, ensuring that the Offshore Wind Leasing Round 4 process aligned with the UK’s Net Zero 2050 goals.
   • Provided insights on the long-term impact of leasing decisions on renewable energy infrastructure and investment strategy.

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MCC played a pivotal role in developing a financial roadmap for the Yas Creative Hub by delivering:

1. Custom-Built Financial Feasibility Model
   • Designed a comprehensive financial model from scratch, projecting revenues, capital expenditures, and operating costs across different project phases.
   • Ensured the model accurately reflected the financial dynamics of a large-scale media city development.
2. Funding and Breakeven Analysis
   • Identified the funding requirements for Phase One and forecasted the timeline for achieving breakeven.
   • Provided insights on capital allocation to optimize investment efficiency and long-term sustainability.
3. Scenario-Based Demand and Economic Impact Assessment
   • Analyzed multiple demand scenarios to evaluate how different industry growth trajectories could impact the media city’s success.
   • Assessed the economic benefits likely to accrue to Abu Dhabi, reinforcing the project’s value proposition within the creative and cultural industries.
4. Strategic Coordination with National Media Authorities
   • Worked in close collaboration with the national media authority to align financial planning with Abu Dhabi’s long-term vision for its media and entertainment sector.
   • Ensured the feasibility model supported policy objectives and investment priorities within the emirate’s CCI strategy.

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MCC played a crucial role in enabling Averda to secure funding by delivering:

1. Corporate Finance Model Development
   • Designed a comprehensive financial model from scratch, forecasting development costs, operational expenses, and cash flow projections for waste management projects.
   • Ensured the model provided a clear financial roadmap for new plastics recycling plants and material recovery facilities.
2. Funding Requirements and Debt Optimization
   • Analyzed capital requirements and identified a $30 million funding need for new projects across Oman, Morocco, and South Africa.
   • Structured financial forecasts to optimize debt covenants, ensuring that Averda could service the loan while maintaining financial stability.
3. Collaboration with Corporate Development
   • Worked closely with Averda’s corporate development team to align the financial model with business expansion plans.
   • Ensured that the model met the International Finance Corporation’s (IFC) funding criteria, improving the likelihood of successful procurement.
4. Sustainability and Environmental Impact
   • Incorporated recycling and reuse strategies into financial planning to align with Averda’s commitment to reducing carbon emissions.
   • Provided data-driven insights on how the funding would contribute to long-term environmental sustainability and operational efficiency.

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MCC, led by PJ McCloskey, delivered comprehensive project leadership and financial expertise, including:

1. Consumer Harm Assessment:
   • Developed a framework to assess whether Heathrow’s cost allocation practices led to unfair financial burdens on consumers.
   • Investigated revenue distribution methodologies to determine their impact on pricing structures.
2. Risk Analysis & Data Collection Strategy:
   • Identified three critical financial risks associated with cost and revenue allocation.
   • Designed structured data collection requirements to acquire the necessary financial records and operational insights.
3. Project Leadership & Execution:
   • Managed project progress, ensuring alignment with Heathrow’s objectives and regulatory considerations.
   • Coordinated with stakeholders to facilitate access to financial data and operational reports.
4. Findings & Recommendations:
   • Due to insufficient evidence, the project concluded that proof of consumer harm could not be established.
   • Recommended enhancements to cost policy and financial reporting practices to prevent potential consumer harm in the future.

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MCC delivered a detailed economic impact study, helping Dubai Municipality understand the far-reaching benefits of the DSST project. Our contributions included:

1. Economic Impact Assessment:
   • Identified the direct, indirect, and induced economic effects of the tunnel on Dubai’s economy.
   • Analyzed job creation, multiplier effects, and GDP contributions resulting from the construction and long-term operation of the system.
   • Evaluated sector demand growth, particularly in construction, transportation, and related industries.
2. Environmental and Energy Efficiency Analysis:
   • Assessed reductions in power consumption by replacing existing pumping stations with gravity-fed tunnels.
   • Calculated the CO₂ emissions savings and the tunnel’s role in enhancing Dubai’s climate resilience.
   • Provided insights on the impact on water supply reliability and conservation, reinforcing Dubai’s climate change mitigation efforts.
3. Public Health and Infrastructure Benefits:
   • Identified reduced public disruption from infrastructure failures, leakages, and emergency repairs.
   • Highlighted the long-term benefits for sanitation, health, and resilience against future pandemics like COVID-19.
4. Urban and Reputational Advantages:
   • Demonstrated how the project would enhance land use, reduce brownfield sites, and support Dubai’s urban expansion.
   • Assessed the reputational benefits of positioning Dubai as a leader in sustainable and innovative urban infrastructure.
   • Explored how the project could attract top-tier talent and investment, further solidifying Dubai’s status as a global economic hub.

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MCC conducted a rigorous analysis to address the client’s needs:

1. Comprehensive Data Review:
   • Examined electricity cost data from ONS, BEIS, and UR to identify discrepancies and their potential causes.
   • Analyzed the methodologies and assumptions underlying each source to understand the root of the conflicting conclusions.
2. Detailed Report:
   • Authored an 11-page paper that provided a clear comparison of the data, highlighted the key differences, and evaluated the reliability of each source.
   • Concluded which source offered the most accurate representation of electricity charges in Northern Ireland.
3. Actionable Insights:
   • Delivered recommendations to CCNI, enabling them to use the findings to advocate effectively for consumers and address public concerns about electricity costs.

Our work empowered CCNI to confidently address conflicting narratives on electricity charges, ensuring transparency and fostering trust among stakeholders and the public.

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Click here to see the report we submitted to the Consumer Council. ​

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MCC delivered a robust solution to meet The Insolvency Service’s requirements:

1. Data Collection and Analysis:
   • Sourced and managed extensive financial and operational data for over 700 insolvent companies, ensuring a complete and accurate dataset.
   • Oversaw the collection, analysis, and verification of approximately 20,000 individual data points, maintaining high standards of quality and consistency.
2. Financial Insights:
   • Provided a detailed view of the financial circumstances of selected insolvent companies, offering critical insights to inform the Value for Money evaluation.
3. Project Oversight:
   • Led and coordinated all aspects of the project, ensuring that objectives were met on time and that the evaluation was thorough and actionable.

Our work enabled The Insolvency Service to effectively assess the impact of the Corporate Insolvency and Governance Act (2020), ensuring transparency, accountability, and evidence-based decision-making.

MCC delivered comprehensive and multidisciplinary approach to meet DfE’s requirements. Our contributions included:‍

1. Multidisciplinary Review Team: Assembled and led a four-person team (two accountants and two engineers) on behalf of DfE to investigate BT’s broadband rollout.
2. Contract & Reporting Inconsistencies: Identified problems in BT’s reported information, including material inconsistencies with its contract obligations under BDUK.
3. Grant Monitoring Tools: Inspected and updated DfE’s Excel-based files used for grant monitoring and compliance tracking.
4. Technical Site Inspections: Conducted site visits, gathered hardware specifications, and questioned openreach on technical issues.
5. Infrastructure Verification: Engineers physically inspected installed infrastructure to assess quality and compliance.
6. Service Delivery Assessment: Provided expert advice on whether the infrastructure would achieve super fast broadband speeds of at least 24 Mbps.

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MCC delivered comprehensive forecasting solutions tailored to SCAD’s requirements, ensuring precise and actionable results. Our services included:

1. Sectoral Research and Analysis:
   • Conducted in-depth research on individual sectors contributing to Abu Dhabi’s GDP.
   • Analyzed historical performance, identified key growth variables, and evaluated market conditions for each sector.
2. Development of Advanced Forecasting Models:
   • Built sector-specific econometric models and statistical frameworks to forecast GDP trends.
   • Integrated scenario drivers and "what-if" simulations to assess potential impacts of economic changes.
3. Accurate GDP Forecasting:
   • Utilized advanced forecasting techniques, including extrapolation and time series decomposition, to project GDP trends over the specified time horizon.
   • Accounted for various assumptions and uncertainties to ensure reliable predictions.
4. Continuous Monitoring and Updates:
   • Regularly updated forecasts with new economic data and information to maintain their accuracy and relevance.
   • Monitored sector-specific indicators and adjusted models to reflect changing market dynamics.
5. Actionable Insights for Decision-Making:
   • Delivered comprehensive reports and insights to empower policymakers, investors, and businesses in their strategic planning and resource allocation.
   • Enabled stakeholders to identify opportunities for development and investment, supporting the sustainable growth of Abu Dhabi’s economy.

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MCC delivered a comprehensive suite of services to meet Cefas’ requirements, ensuring their tax compliance and mitigating potential risks. Our services included:

1. Preparation and Filing of Annual Tax Return:
   • Compiled and reviewed all necessary financial data provided by Cefas for the tax year ending March 31, 2022.
   • Accurately prepared and submitted the annual tax return to the KTA in compliance with Kuwaiti tax laws and regulations.
2. Advisory Support:
   • Provided expert advice on the nuances of Kuwait’s tax framework, ensuring Cefas understood their obligations.
   • Assisted in preparing the notification for the cessation of Cefas’ activities in Kuwait, keeping the KTA informed.
3. Query Management:
   • Liaised with the KTA to address and resolve any queries or concerns related to the tax return submission.
   • Ensured prompt responses to KTA’s inquiries, minimizing delays and ensuring a seamless process.

Through our tailored approach and in-depth knowledge of Kuwaiti tax regulations, MCC enabled Cefas to meet their compliance requirements efficiently, allowing them to focus on their core environmental and scientific missions.

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MCC led a major piece of this project in Northern Ireland, alongside an engineering consultancy (SKM) and a financial consultancy (PKF, now BDO), with regards to inconsistencies in Northern Ireland Electricity Network Ltd (NIEN’s) capitalisation practices. Our contributions to this project included:

• Project Leadership: Managing the end-to-end investigation process, ensuring seamless collaboration among all stakeholders.
• Regulatory Support: Drafting actionable reports for the Utility Regulator board, providing clear and evidence-based recommendations.
• Expert Analysis: Working with engineers, economists, and legal advisors to uncover inconsistencies and quantify consumer impact.
• Advocacy for Consumer Interests: Supporting the Utility Regulator’s efforts to adjust NIEN’s valuation, ensuring fairness and accountability in the energy market.

Through this work, MCC demonstrated its ability to navigate complex regulatory challenges and deliver impactful solutions that safeguard consumer interests.

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MCC was involved with the early preparations for the RC2 price control, which were due to take effect from 1st January 2023. This involved a review of the multi-year, incentive-based price controls that have been applied to the water, wastewater, recycled water and electricity companies in the Emirate of Abu Dhabi (AADC, ADDC, ADSSC, TRANSCO, and EWEC). ​

MCC reviewed the price control model used in Abu Dhabi to set the Maximum Allowed Revenue (MAR) for electricity and water monopoly network services. Unlike most price controls in the UK, this involved a fixed and variable term for allowable revenues: which was designed to incentivize the growth of electricity and water services in the region.​

MCC’s role was to provide analysis of WACC calculations from previous price controls (RC1), and to guide WACC developments for the upcoming price control (RC2). MCC used both regulators’ benchmarks and bottom-up analysis to generate an anticipated WACC allowance.​

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In 2019, MCC, led by our director PJ McCloskey, delivered a comprehensive and actionable report to Citizens Advice (CA). The report was designed to equip CA and the Challenge Group (CG) with the tools and frameworks necessary to assess energy network companies’ business plans effectively for the RIIO-2 price controls.

Our contributions included:

1. Key Information Identification:
   PJ outlined six main categories of information that CA and CG should focus on when reviewing business plans, ensuring the evaluation process was thorough and aligned with regulatory objectives. These categories included:
   • Stakeholder Engagement
   • Finance Issues
   • Expenditure Bids
   • Outcomes
   • Customer Charges
   • Governance
2. Assessment Methodology Development:
   PJ conducted a detailed review of assessment techniques used in prior regulatory frameworks, including RIIO-1 and PR19, and identified lessons learned to inform the RIIO-2 process.
3. Traffic-Light Scorecard Approach:
   PJ recommended a practical, user-friendly assessment method in the form of a traffic-light scorecard. This approach allowed CA and CG to visually and systematically evaluate key aspects of business plans.
4. Guidance and Tools:
   The report provided a comprehensive list of questions for network companies, enabling CA and CG to extract the necessary information for informed evaluations. Additionally, PJ provided tailored recommendations on scoring and prioritisation to ensure alignment with regulatory expectations and consumer interests.

This work provided Citizens Advice with a structured framework to advocate for transparency, fairness, and accountability in energy network business planning, ultimately safeguarding consumer interests in the regulatory process.

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In 2022, MCC provided comprehensive support to the Civil Aviation Authority (CAA) in developing and refining their finance policy decisions for the H7 Heathrow Airport Price Controls. This included an in-depth analysis of regulatory precedents, financial policies, and market dynamics to ensure the CAA’s decisions were grounded in robust evidence and best practices.

Key aspects of our work included:

• Policy Development Support: We assisted the CAA in crafting finance policy frameworks for the H7 Price Controls, ensuring alignment with regulatory expectations and addressing key stakeholder concerns.
• Regulatory Precedent Analysis: Our team conducted a detailed review of prior appeals, including the CMA’s RIIO-2 network appeals from 2021 and the water sector PR19 redeterminations in 2020. This helped identify relevant precedents and anticipate areas of potential scrutiny in future appeals.
• Expert Witness Contributions: We leveraged the expertise of our director, Mr. PJ McCloskey, whose prior witness statements were extensively cited in the CMA’s Energy Licence Appeal Final Decision. This allowed us to provide authoritative insights and prepare the CAA for potential appeals.
• Appeals Preparedness: In anticipation of challenges to the H7 decisions, we supported the CAA by identifying issues likely to be appealed and developing counterarguments grounded in financial and regulatory analysis.

Our preparatory work proved instrumental during the subsequent 2023 CMA appeals by Heathrow, British Airways plc, Delta Air Lines Inc., and Virgin Atlantic Airways Ltd., positioning the CAA to navigate these challenges effectively.

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MCC assisted the Consumer Council for Water (UK) by peer reviewing Ofwat’s indicative WACC for the PR24 price control.​ This work included extensive analysis of Ofwat’s historical WACC allowances, positions, and decisions. MCC also took into consideration approaches by other regulators (e.g. Ofgem, CMA) and best practice guidance.​

To provide a robust evaluation, MCC undertook an in-depth examination of each WACC parameter, focusing on critical elements such as:

- Cost of equity

- Cost of debt

- Financing and gearing

- Risk-free rate

- Total market return

- Equity beta

In addition, we reviewed Ofwat’s financial models, such as their balance sheet cost of debt model, and built alternative and complementary models to enhance our analysis and provide additional perspectives. The insights from this work were compiled into a detailed final report, which has been published online (May 2023).

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Our Approach and Methodology

1. Structured Thematic Coding

MCC developed a comprehensive coding framework to categorise over 50 responses from varied sectors, ensuring analytical consistency and uncovering common themes across data points.

2. Evidence Strength and Quality Assessment

Each submission was systematically reviewed for relevance, depth, and credibility. MCC applied a three-dimensional framework assessing evidence type, source robustness, and alignment with key policy questions.

3. Integration of Multi-Channel Data

Responses were consolidated from both CCC’s online portal and email submissions, ensuring no data was excluded. This created a single, centralised dataset - the foundation for a transparent and replicable analysis process.

4. Identification of Market Gaps

MCC’s analysis uncovered significant data and governance gaps - including a lack of price transparency, inconsistent credit registries, and limited visibility into project ownership and quality assurance.
These findings directly supported CCC’s recognition of the need for stronger market integrity and regulatory frameworks.

5. Comparative Market Insights: UK vs Global

The report contrasted the UK’s emerging voluntary carbon market with established international systems (e.g., Verra, Gold Standard, REDD+). It identified differences in standards, monitoring rigor, and land-use implications - particularly in peatland versus forestry-based offsets.

6. Policy-Aligned Reporting

MCC delivered structured summaries addressing 13 questions across topics such as:

• Market regulation and standardisation
• Harnessing private finance for climate goals
• Corporate transparency and offset credibility
• Integration with Article 6 of the Paris Agreement

Each summary provided balanced, evidence-based insights to support CCC’s policymaking and communication efforts.

7. Balanced View of Risks and Opportunities

MCC identified both market vulnerabilities, such as greenwashing, double counting, and weak monitoring and emerging opportunities, including private finance mobilisation, biodiversity enhancement, and scalable net-zero solutions.

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Results Delivered

✅ Comprehensive stakeholder analysis across 56 respondents
✅ Transparent, replicable analytical framework for consultation evidence
✅ Identification of data gaps and policy-relevant insights
✅ Publication of findings in CCC’s official report
✅ Contribution to the UK’s evolving carbon offset governance approach

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For the past two years, we helped this regulator with their regulation of district cooling, with a focus on the economic clauses. This involved analysis of financial and levelised cost models submitted by three district cooling service providers (PAL Cooling; Tabreed; and Manazel).​

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For this engagement, our team:​

• used district cooling benchmarks, for capex, opex and the cost of capital, to assess the efficiency of ~30 district cooling plants in Abu Dhabi;​
• calculated the Internal Rate of Return (IRR) for the concession period and compares it with the WACC benchmark at the date of construction;​
• reviewed charge structures and escalation rates;​
• compared the levelised costs of conventional cooling with the levelised costs of district cooling, to advise whether customers are getting a good deal from their DC provider.​

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MCC Economics advised the Australian Energy Regulator (AER) with the development of their Rate of Return Instrument for 2022, which covers electricity and gas distribution and transmission across Australia.​ Our role was primarily in advising the regulator on rate of return considerations, providing analysis and commentary on the impact of varying macroeconomic conditions and parameters of the rate of return instrument.​

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We used the AER’s inflation model to understand the impact of high inflation on the price-control and provided a scenario model to demonstrate to AER’s stakeholders the impact of varying parameters of the rate of return instrument (beta, term, MRP, RFR).​ We led the use of crosschecks for the rate of return, with much of this analysis being included in chapters authored by the MCC team in the Draft Decision and Final Decision.​ We also analysed stakeholder responses during the early stages of engagement with service providers, focussed on these areas of interest.​

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MCC, led by PJ McCloskey, delivered exceptional support to Ofgem on a range of critical projects:

1. Policy Leadership for Price Controls:
   • Led policy and analysis for RIIO-2, building a financeability model, engaging with rating agencies, and evaluating the implications of inflation approaches.
   • Drafted the finance chapters for Ofgem’s 2021 and 2023 Final Determinations, covering debt and equity financing, WACC allowances, working capital facilities, and capitalisation rates.
2. Design of Risk and Return Arrangements:
   • Contributed to the development of the ESO Reporting and Incentives (ESORI) Arrangements, ensuring the ESO’s performance was transparent and accountable to stakeholders.
   • Developed evaluation criteria focusing on balancing costs, demand forecasting, the phase-out of non-competitive balancing services, and day-ahead procurement.
3. Performance Evaluation Frameworks:
   • Designed metrics and methodologies for assessing the ESO’s performance, considering plan delivery, metric outcomes, stakeholder input, and overall value for money.
   • Provided insights to support Ofgem in holding the ESO accountable for its objectives while delivering efficient services.

Through these projects, MCC played a pivotal role in strengthening Ofgem’s financial and regulatory frameworks, enhancing the ESO’s accountability, and ensuring effective delivery of its responsibilities.

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