# MCC Economics

> MCC Economics & Finance is a UK-based economic and financial consultancy providing independent, evidence-based advice to governments, regulators, utilities, infrastructure investors, and private sector organisations. The firm specialises in UK regulatory cost of capital (WACC) and has been referenced in CMA and PR24 determinations. Sectors covered include electricity, gas, water, and aviation, with work spanning the UK, Northern Ireland, Australia, and the Middle East (UAE and Abu Dhabi).

MCC works across policy, regulation, and finance, combining economic reasoning, financial analysis, and sector experience. Clients include the Climate Change Committee, Ofgem, the Civil Aviation Authority, the Australian Energy Regulator, the Department of Energy Abu Dhabi, DESNZ, the Crown Estate, UK Export Finance, Heathrow Airport, and the Utility Regulator Northern Ireland.

## Services

- [Regulatory Economics](https://www.mcceconomics.co.uk/services/regulatory-economics): Price controls, tariffs, and regulatory frameworks across energy, water, aviation, and infrastructure.
- [Consultation Analysis](https://www.mcceconomics.co.uk/services/consultation-analysis): Processing and analysing public consultation responses for governments and enterprises.
- [Economic Analysis](https://www.mcceconomics.co.uk/services/economic-analysis): Economic modelling and analysis to support informed decision-making.
- [Financial Modelling](https://www.mcceconomics.co.uk/services/financial-modelling): Building and reviewing financial models for regulated businesses and infrastructure projects.
- [Financial Strategy](https://www.mcceconomics.co.uk/services/financial-strategy): Financial strategy development for organisations facing complex decisions.
- [Research and Data Analysis](https://www.mcceconomics.co.uk/services/research-and-data-analysis): Independent qualitative and quantitative research on market trends, policy impacts, and investment outcomes.
- [Public Private Partnerships](https://www.mcceconomics.co.uk/services/public-private-partnerships-ppp): Economic and financial assessment of PPP projects and concession models, including risk allocation and value for money.
- [Accounting](https://www.mcceconomics.co.uk/services/accounting): Financial reviews, regulatory accounting, grant monitoring, and capital structure analysis for utilities and infrastructure.
- [Data Science](https://www.mcceconomics.co.uk/services/data-science): Data analysis and modelling to improve transparency and forecast trends.

## Key Pages

- [People](https://www.mcceconomics.co.uk/people): The MCC Economics team.
- [Our Experience](https://www.mcceconomics.co.uk/our-experience): Track record across clients and sectors.
- [Case Studies](https://www.mcceconomics.co.uk/case-studies): Project work for regulators, governments, and companies in the UK, Australia, and the Gulf.
- [Publications](https://www.mcceconomics.co.uk/publications): Independent research and commentary on regulation, cost of capital, energy, and water.
- [Dashboards](https://www.mcceconomics.co.uk/dashboards): Interactive data dashboards on energy, water, and macroeconomic topics.
- [Frameworks](https://www.mcceconomics.co.uk/frameworks): Public sector framework agreements MCC operates under.
- [Courses](https://www.mcceconomics.co.uk/courses): Training courses in economics and finance.
- [Videos](https://www.mcceconomics.co.uk/youtube-videos): MCC's video content.
- [Climate Emergency Action Plan](https://www.mcceconomics.co.uk/climate-emergency-action-plan): MCC's commitments on climate.
- [Book a Consultation](https://www.mcceconomics.co.uk/book-consultation): How to engage MCC Economics.

## Publications

- [PR24 WACC Review for CCW](https://www.mcceconomics.co.uk/publication/pr24-wacc-review-from-mcc-for-ccw): Review of Ofwat's PR24 final WACC determination for the Consumer Council for Water, finding the WACC could have been set 1.08% lower, a potential customer saving of £5.4 billion over five years.
- [Climate Change Committee Offsetting Report](https://www.mcceconomics.co.uk/publication/climate-change-committee-offsetting-report): MCC's evidence to the UK Climate Change Committee on the integrity, governance, and credibility of carbon offsetting in net zero delivery.
- [CCC Call for Evidence Summary on Offsets](https://www.mcceconomics.co.uk/publication/a-report-for-the-climate-change-committee-summarising-the-call-for-evidence-responses-for-offsets): Summary of 56 stakeholder responses to the Climate Change Committee's call for evidence on UK voluntary carbon offsets.
- [Cost of Capital: 10 Hot Topics](https://www.mcceconomics.co.uk/publication/cost-of-capital---10-hot-topics): Ten current issues shaping regulatory cost of capital decisions, drawing on case studies from Australia, New Zealand, and the UK.
- [Financial Modelling Best Practice Guide](https://www.mcceconomics.co.uk/publication/financial-modelling---best-practice-guide): How to build a financial model a stranger can pick up and trust: planning, structure, colour conventions, and formula rules.
- [Developing Financial Models to Forecast ROI](https://www.mcceconomics.co.uk/publication/developing-comprehensive-financial-models-to-forecast-roi): Practical guide to building ROI models that capture uncertainty through scenario and sensitivity analysis.
- [UAE GDP Forecasting Model Comparison](https://www.mcceconomics.co.uk/publication/comparative-analysis-of-arima-var-and-linear-regression-models-for-uae-gdp-forecasting): Testing ARIMA, VAR, and linear regression on UAE data from 1975 to 2023; ARIMA wins long range, regression wins short range with good inputs.
- [Economic Impact Assessment](https://www.mcceconomics.co.uk/publication/economic-impact-assessment): How Economic Impact Assessments work: direct, indirect and induced effects, multipliers, and input-output models, with cases from Scotland, Ireland, and the UAE.
- [PPP Contingent Liability: Are We Doing It Right?](https://www.mcceconomics.co.uk/publication/ppp-contingent-liability-are-we-doing-it-right): Fiscal risks in PPP projects, how governments underestimate contingent liabilities, and strategies for managing them.
- [The Five Case Model](https://www.mcceconomics.co.uk/publication/business-case-development): Guide to the framework behind every UK government business case, with lessons from the Thames Tideway Tunnel.
- [The UKIB: A New Force for Economic Growth?](https://www.mcceconomics.co.uk/publication/the-ukib-a-new-force-for-economic-growth): Early assessment of the UK Infrastructure Bank's mandate, funding capacity, deal activity, and role in net zero delivery.
- [Are Stock Returns Predictable?](https://www.mcceconomics.co.uk/publication/are-stock-returns-predictable-rewarding-patient-investors-powerful-binding-equilibriums): Analysis of 119 years of US market data using Tobin's Q and dividend yield, showing long-term returns contain a predictable component.
- [Regulating for Innovation: Ofwat's Innovation Fund](https://www.mcceconomics.co.uk/publication/regulating-for-innovation-evaluating-ofwats-innovation-fund): Evaluation of the fund's £140m across 74 projects, what's working, and the barriers still slowing adoption in the water sector.
- [AMP8: £104 Billion for the UK Water Sector](https://www.mcceconomics.co.uk/publication/amp8-unprecedented-ps104-billion-approval-for-uk-water-sector---opportunities-and-challenges-ahead): What Ofwat's 2025-2030 investment programme means for customers, investors, and delivery partners.
- [Quality Business Plans for the GB Water Sector](https://www.mcceconomics.co.uk/publication/quality-business-plans-for-the-gb-water-sector): Ofwat's PR19 business plan requirements, cost benchmarking, stakeholder consultation, and the factors behind a high-quality plan.
- [UK Water System Resilience](https://www.mcceconomics.co.uk/publication/uk-water-system-resilience-looking-for-solutions-across-the-pond): US tools and case studies the UK could adapt as climate change and ageing assets pressure water services.
- [Asset Health in the Water Sector](https://www.mcceconomics.co.uk/publication/asset-health-in-the-water-sector-us-innovations-for-uk-challenges): How US regulatory and engineering practices could close the UK's resilience gaps, shifting from reactive renewal to proactive asset health.
- [Parallels and Differences: US and UK Water Sectors](https://www.mcceconomics.co.uk/publication/parallels-and-differences-between-the-us-and-uk-water-sectors): Governance and market differences between the two systems and what cross-Atlantic learning offers sector reform.
- [Electricity Distribution Privatisation in Great Britain](https://www.mcceconomics.co.uk/publication/electricity-distribution-privatisation-in-great-britain-the-electricity-act-1989-and-the-initial-price-controls): How the twelve Regional Electricity Companies were sold in 1990 with RPI plus X price controls written into their licences.
- [The 1995/96 Distribution Price Control Reviews](https://www.mcceconomics.co.uk/publication/the-1995-96-electricity-distribution-price-control-reviews-dpcr1-dpcr2-the-switch-to-real-price-cuts-and-the-reopened-review): The review that cut Britain's distribution charges in real terms for the first time, then reopened after the Northern Electric bid.
- [ENWL: Expensive Electricity?](https://www.mcceconomics.co.uk/publication/enwl-expensive-electricity): Analysis of Iberdrola's €5 billion acquisition of Electricity North West at a 44% premium to Regulatory Asset Value.
- [Phoenix Energy](https://www.mcceconomics.co.uk/publication/phoenix-energy-was-belfasts-gas-network-a-bargain-or-a-warning-about-gas): Valuation and regulatory analysis of the Belfast gas network acquisition and what it signals about investing in gas during the energy transition.
- [Northern Ireland Electricity Costs: Why the Statistics Disagree](https://www.mcceconomics.co.uk/publication/northern-irelands-retail-electricity-market-an-electricity-cost-puzzle): ONS puts Northern Ireland top of UK regions for electricity spend, BEIS and the Utility Regulator put it bottom; MCC tests four explanations for a £100m gap.
- [Disposable Incomes Across the UK](https://www.mcceconomics.co.uk/publication/disposable-incomes-across-the-uk-what-they-reveal-about-energy-in-northern-ireland): Northern Ireland's disposable income at 81% of the national average and what it means for energy affordability policy.
- [Income and Wealth Inequality in the UK](https://www.mcceconomics.co.uk/publication/mccs-advice-to-government-inequality): Causes and measurement of inequality and its impact on growth, stability, crime, and health.
- [Consumer Engagement in Energy Regulation: Ten Fundamentals](https://www.mcceconomics.co.uk/publication/excellence-in-consumer-engagement): Ten principles for effective consumer engagement, drawn from inside the Australian regulator where appeals ran at 32 of 51 decisions until 2017.
- [Electricity Pricing Reform in Australia](https://www.mcceconomics.co.uk/publication/mcc-submission-on-the-aemc-draft-terms-of-reference-for-electricity-pricing): MCC's submission on the AEMC's electricity pricing review: nine strategic trade-offs and protections for vulnerable consumers.
- [Australia's Smart Meter Rollout](https://www.mcceconomics.co.uk/publication/mcc-submission-on-accelerating-the-smart-meter-deployment): MCC's submission on whether retailers or network companies should lead smart meter deployment.
- [Opex in Abu Dhabi's Utility Sector](https://www.mcceconomics.co.uk/publication/opex-in-abu-dhabis-utility-sector): How Abu Dhabi's regulation of operating expenditure has evolved, from historical baselines to benchmarked approaches.
- [Abu Dhabi's Solar Energy: Centralised or Decentralised](https://www.mcceconomics.co.uk/publication/the-approach-for-abu-dhabis-solar-energy-centralised-or-decentralised): Rooftop solar remains uneconomical for heavily subsidised groups but cost-effective for industry and commerce; subsidy reform could change that.
- [Investment in Distributed Solar: Abu Dhabi](https://www.mcceconomics.co.uk/publication/investment-in-distributed-solar-a-case-for-abu-dhabi-uae): Payback by customer type and how solar adoption could cut government subsidies by AED 1.5 billion annually.
- [Sub-1¢/kWh Solar in Sight](https://www.mcceconomics.co.uk/publication/sub-1c-kwh-solar-in-sight-will-the-uae-beat-its-own-record-by-2027): Whether Dubai's next PV plus storage auction could deliver the world's first solar tariff below one US cent per kWh.
- [Battery Big-Bang: Abu Dhabi's 400 MW Tender](https://www.mcceconomics.co.uk/publication/battery-big-bang-abu-dhabis-400-mw-tender-and-what-it-means-for-the-grid-battery-big-bang): EWEC's 400 MW / 800 MWh battery storage tender and its implications for grid stability and solar integration in the Gulf.
- [Desalination at 2.9 kWh/m³: Dubai's Hassyan Project](https://www.mcceconomics.co.uk/publication/desalination-at-2-9-kwh-m3-inside-dubais-hassyan-ro-megaproject): Inside the world's largest planned solar-powered desalination facility and its record energy efficiency.
- [Maximising Capacity: Grid Infrastructure for High-Renewable Systems](https://www.mcceconomics.co.uk/publication/maximising-capacity-planning-managing-grid-infrastructure-for-high-renewable-systems): The planning, connections reform, and flexibility tools that make high-renewable power systems workable, with examples from the UK, Australia, and the Gulf.
- [Demand-Side Management for Solar Integration](https://www.mcceconomics.co.uk/publication/the-role-of-utilities-in-demand-side-management-for-solar-integration-2025): How utilities can use flexible demand to integrate more solar, cut system costs, and relieve grid constraints.
- [Has Dubai Achieved 2% Electricity Losses?](https://www.mcceconomics.co.uk/publication/has-dubai-achieved-2-losses-and-0-94-customer-minutes-lost-on-its-electricity-grids-and-4-5-losses-on-its-water-network): DEWA's smart grid programme, its reported loss and reliability metrics, and the caveats around international benchmarking.

## Case Studies

- [Ofgem Price Controls](https://www.mcceconomics.co.uk/case-studies/ofgem-price-controls): Led finance policy and analysis for RIIO-2, drafting the finance chapters of Ofgem's 2021 and 2023 Final Determinations and designing risk and return arrangements for the Electricity System Operator.
- [Civil Aviation Authority UK Price Controls](https://www.mcceconomics.co.uk/case-studies/civil-aviation-authority-caa-uk-price-controls): Supported the CAA's finance policy for the H7 Heathrow price controls, preparing for the 2023 CMA appeals by Heathrow and major airlines.
- [NATS Financial Modelling and Analysis](https://www.mcceconomics.co.uk/case-studies/nats-financial-modelling-and-analysis): Reviewed the NATS En Route financial model, identifying 382 issues, and supported the CAA's NR23 price control model.
- [Heathrow Airport Forensic Accounting](https://www.mcceconomics.co.uk/case-studies/heathrow-airport): Strategic review of Heathrow's cost and revenue allocation practices to assess potential consumer harm.
- [Australian Energy Regulator](https://www.mcceconomics.co.uk/case-studies/aer-case-study): Advised the AER on its 2022 Rate of Return Instrument, leading WACC cross-checks and authoring chapters in the draft and final decisions.
- [Climate Change Committee Carbon Offsetting](https://www.mcceconomics.co.uk/case-studies/climate-change-comittee-carbon-offsetting): Thematic analysis of over 50 stakeholder submissions to the CCC's call for evidence on voluntary carbon offsetting, published in the CCC's 2022 report.
- [DESNZ Oil and Gas](https://www.mcceconomics.co.uk/case-studies/desnz-oil-and-gas): Analysed over 55,000 responses to the Climate Compatibility Checkpoint consultation for North Sea oil and gas licensing.
- [DESNZ Offshore Wind](https://www.mcceconomics.co.uk/case-studies/desnz-offshore-wind): Thematic analysis of stakeholder responses to the Offshore Wind National Policy Statement consultations.
- [DESNZ National Policy Statement](https://www.mcceconomics.co.uk/case-studies/desnz-national-policy-statement): Managed the analysis of thousands of responses to the 2021 consultation and 2023 re-consultation on the Energy National Policy Statements.
- [The Crown Estate UK Bid Tool](https://www.mcceconomics.co.uk/case-studies/the-crown-estate-uk-bid-tool): Built a fully automated bidding tool for Offshore Wind Leasing Round 4, enabling real-time bidder selection during multi-cycle auctions.
- [Thistle Wind Partners UK](https://www.mcceconomics.co.uk/case-studies/thistle-wind-partners-uk): Developed a bespoke financial model to determine the Contracts for Difference strike price for 2GW of offshore wind capacity.
- [Consumer Council for Water](https://www.mcceconomics.co.uk/case-studies/consumer-council-for-water-ccw): Peer reviewed Ofwat's indicative WACC for PR24, examining cost of equity, cost of debt, gearing, and market return parameters.
- [Citizens Advice UK Price Controls](https://www.mcceconomics.co.uk/case-studies/citizens-advice-uk-price-controls): Built an assessment framework and traffic-light scorecard for evaluating energy network business plans under RIIO-2.
- [The Consumer Council Northern Ireland](https://www.mcceconomics.co.uk/case-studies/the-consumer-council-northern-ireland-case--study): Resolved conflicting ONS, BEIS, and Utility Regulator data on whether Northern Ireland's electricity charges were the UK's highest or lowest.
- [Northern Ireland Electricity Networks](https://www.mcceconomics.co.uk/case-studies/northern-ireland-electricity-networks-case-study): Led the investigation into inconsistencies in NIE Networks' capitalisation practices alongside engineering and financial consultancies.
- [Firmus Energy Financial and Regulatory Support](https://www.mcceconomics.co.uk/case-studies/firmus-energy-financial-and-regulatory-support): VAT compliance across Great Britain and Ireland plus statutory and regulatory accounts prepared directly from SAP.
- [Department for Economy Forensic Accounting](https://www.mcceconomics.co.uk/case-studies/department-for-economy): Forensic accounting review of BT's broadband rollout in Northern Ireland, combining accountants and engineers to verify infrastructure and grant compliance.
- [The Insolvency Service](https://www.mcceconomics.co.uk/case-studies/the-insolvency-service-case-study): Value for Money evaluation of the Corporate Insolvency and Governance Act 2020, verifying around 20,000 data points across 700+ insolvent companies.
- [UK Export Finance Economic Research](https://www.mcceconomics.co.uk/case-studies/uk-export-finance-economic-research): Benchmarked UKEF's product development process against export credit agencies, banks, and public financial institutions.
- [Cefas](https://www.mcceconomics.co.uk/case-studies/cefas-case-study): International tax compliance support for the UK government agency, covering Kuwait tax return submission and advisory.
- [Price Controls for a Regulated Monopoly Network Company](https://www.mcceconomics.co.uk/case-studies/price-controls-for-a-regulated-monopoly-network-company): Early preparation for Abu Dhabi's RC2 price control, reviewing the Maximum Allowed Revenue model and WACC allowances.
- [Energy Sector Regulations and Project Financing](https://www.mcceconomics.co.uk/case-studies/energy-sector-regulations-and-project-financing): Regulation of district cooling in Abu Dhabi, benchmarking around 30 plants on capex, opex, and cost of capital.
- [Statistics Centre Abu Dhabi](https://www.mcceconomics.co.uk/case-studies/statistics-centre-abu-dhabi): Sector-specific GDP forecasting models for Abu Dhabi with scenario drivers and continuous updating.
- [Dubai Municipality](https://www.mcceconomics.co.uk/case-studies/dubai-muncipality-case-study): Economic impact assessment of the Dubai Strategic Sewerage Tunnel, a mega-project estimated at AED 30 to 80 billion.
- [Twofour54 Financial Feasibility](https://www.mcceconomics.co.uk/case-studies/twofour54-financial-feasibility): Financial feasibility model for the Yas Creative Hub, Abu Dhabi's purpose-built media city.
- [Averda UAE Financial Model](https://www.mcceconomics.co.uk/case-studies/averda-uae-financial-model): Corporate finance model that helped secure $30 million from the International Finance Corporation for waste management projects across the Middle East and Africa.

## Dashboards

- [GDP Dashboard](https://www.mcceconomics.co.uk/dashboard-live/gdp-dashboard): Interactive GDP data and forecasts.
- [UAE Sector Diversification](https://www.mcceconomics.co.uk/dashboard-live/uae-sector-diversification): Tracking the diversification of the UAE economy by sector.
- [Regulatory Asset Value Dashboard](https://www.mcceconomics.co.uk/dashboard-live/rav-dashboard): Regulatory asset values across regulated companies.
- [UK CfD Strike Price Dashboard](https://www.mcceconomics.co.uk/dashboard-live/uk-cfd-strike-price-dashboard): Contracts for Difference strike prices from UK renewable energy auctions.
- [Price Control Betas](https://www.mcceconomics.co.uk/dashboard-live/price-control-betas): Equity beta estimates used in regulatory price controls.
- [Rates of Cost Decline Dashboard](https://www.mcceconomics.co.uk/dashboard-live/rates-of-cost-decline-dashboard): Cost decline trends in energy technologies.
- [Electricity Annual Revenue in Abu Dhabi](https://www.mcceconomics.co.uk/dashboard-live/electricity-annual-revenue-in-abu-dhabi-price-controls-2023): Allowed revenues under Abu Dhabi's 2023 electricity price controls.
- [Consultation Analysis Dashboard](https://www.mcceconomics.co.uk/dashboard-live/consultation-analysis-dashboard): Demonstration of MCC's consultation response analysis.

## Team

- [PJ McCloskey](https://www.mcceconomics.co.uk/team/pj-mccloskey): Director; led work for Ofgem, the CAA, DESNZ, and the Climate Change Committee, with witness statements cited in the CMA's Energy Licence Appeal Final Decision.
- [Warwick Anderson](https://www.mcceconomics.co.uk/team/warwick-anderson): Cost of capital and regulatory economics specialist; formerly at the Australian Energy Regulator.
- [Rodrigo Malheiros Remor](https://www.mcceconomics.co.uk/team/rodrigo-malheiros-remor): Economist and analyst covering forecasting, energy transactions, and utility analysis.
- [Mubadir Zaman](https://www.mcceconomics.co.uk/team/mubadir-zaman): Team member profile.
- [Shifa Muhammad](https://www.mcceconomics.co.uk/team/shifa-muhammad): Team member profile.
- [Sanah](https://www.mcceconomics.co.uk/team/sanah): Analyst; led consultation analysis work for DESNZ.

## Notable Client Projects Referenced Elsewhere

- [Averda, Oman, Morocco, South Africa expansion](https://www.mcceconomics.co.uk/case-studies/averda-uae-financial-model): Waste management funding via IFC.
- MCC's PR24 WACC work was carried out for the Consumer Council for Water and is published on the CCW website; its Climate Change Committee report is published on the CCC website.

## Contact

- Book a consultation: https://www.mcceconomics.co.uk/book-consultation
- LinkedIn: https://www.linkedin.com/company/mcc-economics-ltd/