MCC Economics

Consumer Council for Water (CCW) Consultation Analysis

Discover how MCC supported the Consumer Council for Water (UK) by providing expert peer reviews and deep analysis of Ofwat's indicative WACC for the PR24 price control. Gain insights into our methodologies, including regulatory benchmarking, financial modeling, and strategic reporting that helped our client achieve impactful results.

What the Client Needed?

The Consumer Council for Water (CCW) required an expert analysis of Ofwat’s indicative Weighted Average Cost of Capital (WACC) for the PR24 price control. Their aim was to ensure that the WACC parameters were robust, transparent, and aligned with best practices in regulatory decision-making. As part of this effort, CCW sought a detailed review of Ofwat’s historical WACC allowances and decisions, alongside a comparative analysis of regulatory approaches from bodies like Ofgem and the CMA.

How we Helped them?

Peer review of Ofwat’s PR24 WACC

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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I was delighted that MCC's work was completed on time, and within budget, helping us deliver important changes and improvements, to the benefit of our stakeholders. MCC's report is published on the CCC website.

- Bea Natzler
Team Leader at Climate Change Committee, UK

I am delighted to recommend MCC Economics. Specifically, I worked closely with PJ, who helped us with our Nuclear and CCUS projects. PJ helped us develop new policies and answer questions from our stakeholders. His support helped us deliver important changes and improvements, to the benefit of our stakeholders.

- Gordon Hutcheson
Head of Nuclear Policy at Ofgem, UK

MCC Economics has helped us better understand the most important issues for our stakeholders, including: charges, shareholder returns, debt payments and inflation impacts.

- Leila N. Nasr
Section Head at Department of Energy, Abu Dhabi

I am delighted to recommend PJ and his team at MCC Economics. We've been working together on National Policy Statements to help meet net zero targets for 2030 and 2050. We initially appointed MCC Economics to support us on offshore wind consultation analysis and have recently reappointed MCC Economics to undertake a larger consultation analysis role across all sectors, including hydrogen, CCUS and networks. I can confirm that they have shown excellent spreadsheet skills, alongside very good project management, planning and analysis skills, helping us deliver important changes, and continuous improvements, to the benefit of our stakeholders.

- Amy McHugh
Head of Environment in the Energy Infrastructure Planning Policy, UK

I am delighted to recommend PJ and his team from MCC Economics. They helped us with our price controls for Heathrow airport and for NATS (En Route) plc (the air traffic services provider). Specifically, the MCC team helped us deliver important changes and improvements to our financial models and supporting policy documents, to the benefit of our stakeholders.

- Dan Rock
Head of Corporate Finance at CAA, UK

I am delighted to confirm that I worked with PJ on a retail project in 2015. The project helped stakeholders understand electricity costs and charges. Specifically, the project helped us explain to stakeholders, internally and externally, why electricity charges differed across the regions (GB, NI & Ireland). PJ was a key member on the project team, which helped deliver changes and improvements in the understanding of energy retail.

Consumer Council for Water (CCW) Consultation Analysis

What the Client Needed?

How we Helped them?

Peer review of Ofwat’s PR24 WACC

- Bea Natzler
Team Leader at Climate Change Committee, UK

- Gordon Hutcheson
Head of Nuclear Policy at Ofgem, UK

- Leila N. Nasr
Section Head at Department of Energy, Abu Dhabi

- Amy McHugh
Head of Environment in the Energy Infrastructure Planning Policy, UK

- Dan Rock
Head of Corporate Finance at CAA, UK

- Kevin Shiels
Director at Utility Regulator, Northern Ireland

Stride beyond the excellence with impact-driven services

Offerings

About MCC

Get in touch

Consumer Council for Water (CCW) Consultation Analysis

What the Client Needed?

How we Helped them?

Peer review of Ofwat’s PR24 WACC

- Bea NatzlerTeam Leader at Climate Change Committee, UK

- Gordon Hutcheson ​Head of Nuclear Policy at Ofgem, UK

- Leila N. NasrSection Head at Department of Energy, Abu Dhabi

- Amy McHughHead of Environment in the Energy Infrastructure Planning Policy, UK

- Dan RockHead of Corporate Finance at CAA, UK

- Kevin ShielsDirector at Utility Regulator, Northern Ireland

Stride beyond the excellence with impact-driven services

Offerings

About MCC

Get in touch

- Bea Natzler
Team Leader at Climate Change Committee, UK

- Gordon Hutcheson
Head of Nuclear Policy at Ofgem, UK

- Leila N. Nasr
Section Head at Department of Energy, Abu Dhabi

- Amy McHugh
Head of Environment in the Energy Infrastructure Planning Policy, UK

- Dan Rock
Head of Corporate Finance at CAA, UK

- Kevin Shiels
Director at Utility Regulator, Northern Ireland