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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