INDUSTRY SECTOR

ENERGY

Economics is an essential tool for understanding developments in the energy sector. At a policy level, economic principles are crucial to the design of optimal incentive mechanisms. The evolution of industry structures, competition and prices in wholesale and retail gas and electricity markets is another area where economics provides important insights. Moreover, economics continues to play a core role in the regulation of monopoly transmission and distribution networks.

Energy networks. Europe Economics can advise on price control issues including incentive structures, comparative efficiency and the cost of capital, as well as sector-specific matters such as the impact of distributed generation.

Energy markets. Staff at Europe Economics are familiar with market issues in the energy sector, both at wholesale and retail level.

Energy policy. The firm is able to advise on the impact of government energy policy. Areas of expertise include environmental issues such as emissions trading, renewables and energy efficiency; policy aimed at meeting social objectives such as combatting fuel poverty; and matters relating to security of supply.

Europe Economics has carried out consultancy projects for a number of industry participants, regulators and government bodies in the energy sector. Recent projects have included reviewing the competitiveness of retail energy markets and analysing the case for reinforcing the transmission network for renewable generation.