Heathrow Airport Forensic Accounting

Explore our Heathrow Airport Limited case study to see how MCC led a strategic review of cost and revenue allocation practices, identifying key risks and recommending improved financial reporting arrangements. Learn how our expertise helped refine cost policies to enhance transparency and protect consumer interests.

What the Client Needed?

Heathrow Airport Limited required an in-depth evaluation of its cost and revenue allocation practices to assess potential consumer harm and ensure regulatory compliance. The client sought a structured analysis of consumer harm, risk assessment framework, data collection strategy as well as project oversight and management. Given the complexity of financial structures within a large-scale operation like Heathrow, the client needed expert guidance to navigate data challenges and strengthen cost transparency.

How we Helped them?

Forensic Accounting

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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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.

- Kevin Shiels
Director at Utility Regulator, Northern Ireland

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