Regulatory economics

Since privatisation in the UK and the early years of economic regulation across Europe, LE Europe has been a trusted provider of analysis, advice, and evidence to companies, regulators and governments.

LE Europes’ experienced economic consultants produce client-driven studies using cutting-edge analytic tools across a wide range of regulation questions and industries with experience extending beyond Europe. Working closely with other LE Europe teams to provide a high level of expertise in newer issues and methods for regulatory economics, our economic consultants provide robust evidence-based market analysis across the full range of regulatory issues, such as:

  • The introduction of competition into regulated industries, incorporating behavioural biases, consumer churn and switching behaviours
  • Regulatory pricing arrangements and price controls, including the impacts of regulatory policies on firm behaviours, and the consequences of various pricing strategies
  • Consumer behaviour in regulated industries and network markets, including the effect of consumer biases in regulated markets
  • The interaction between regulation and service quality, and consumer and firm’s willingness to pay to avoid risks and/or change service quality
  • Universal service obligations.
  • Benchmarking and cost efficiency
  • Demand forecasting
  • Investment appraisal, impact assessments, and policy evaluation
  • Retail, wholesale and network price structures and network access; and
  • Regulatory due diligence

Our regulatory  economics expertise extends across all the major regulated utilities, sectors and industries, with particular expertise in energy, water, air transport, telecommunication and postal services markets.

Recent projects

We provide our clients with a precise and professional regulatory economics analysis and this is the reason why our team has been trusted by companies, regulation authorities and governments to support them in their decision making. Examples of our work include:

  • Assessing the impact of a proposed merger in the mobile telephony sector
  • Comparing international economic regulation systems in the telecom and energy sectors
  • Assessing the market impacts of new television licences
  • Analysing how consumers and businesses value post office services
  • Providing guidance on competition analysis for the purposes of regulation in the telecom sector
  • Benchmarking EU Digital Single Market initiatives against the performance-based policy model
  • Developing firm behaviours for use in agent-based modelling of water abstraction reform policies
  • Using choice experiments to understand consumer responses to increases in postage stamp prices
  • Investigating competition in upstream sewage markets
  • Using economic experiments to understand consumer switching processes in telecom markets
  • Estimating the small business cost of capital in the gas sector