MCC Economics delivers independent, evidence-based analysis across economics, finance, and regulation. With experience spanning energy, water, infrastructure, and public policy, the firm supports transparent and effective decision-making. Clients across the UK, Europe, and the Middle East benefit from rigorous analysis, financial modelling, and clear policy insight.
MCC Economics publishes independent analysis and commentary on issues at the intersection of economics, finance, and regulation. Our publications draw on experience from projects across energy, water, infrastructure, and public policy - providing evidence-based insights that support transparent, accountable, and effective decision-making.
MCC Economics works with governments, regulators, and organisations across the UK, Europe, and the Middle East.Our case studies highlight how rigorous analysis, financial modelling, and policy insight have supported clients in making transparent, defensible, and effective decisions. Each project reflects our commitment to clarity, independence, and analytical precision.

See how we supported the Australian Energy Regulator (AER) in shaping the 2022 Rate of Return Instrument for electricity and gas networks.
See how we supported the Australian Energy Regulator (AER) in shaping the 2022 Rate of Return Instrument for electricity and gas networks. Through expert WACC cross checks and comprehensive financeability assessments, our work played a pivotal role in delivering robust, defensible decisions for Australia’s energy sector.
The Australian Energy Regulator (AER) required expert guidance to ensure the robustness and defensibility of its 2022 Rate of Return Instrument, a critical framework for determining returns for electricity and gas networks. They needed in-depth analysis to validate key financial metrics, such as WACC and financeability assessments, and to address stakeholder critiques effectively. The AER sought support to navigate complex regulatory requirements, ensuring decisions were analytically sound, transparent, and aligned with industry expectations.
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.
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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Discover how we partnered with Ofgem to navigate complex regulatory challenges, ensuring fair and robust price control mechanisms for electricity and gas networks.
Explore our Ofgem case study to see how MCC provided strategic expertise across multiple projects, from designing risk and return arrangements to leading finance policy and analysis for price controls. Discover how our work ensured transparency, accountability, and robust financial frameworks for the Electricity System Operator (ESO).
Ofgem required expert support in tackling complex regulatory and financial challenges associated with the Electricity System Operator (ESO). Specifically, the client needed the development of price controls. comprehensive guidance on key financial parameters for RIIO-2, risk and return arrangements, and performance metrics design. With these requirements, Ofgem sought a partner with a deep understanding of financial modeling, regulatory frameworks, and stakeholder engagement to drive impactful results.
MCC, led by PJ McCloskey, delivered exceptional support to Ofgem on a range of critical projects:
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.