CEG economists are experts in the economics and regulation of network industries. They have advised clients in the communications, media, energy, finance, transport and water sectors.

The art of designing and implementing "incentive regulation" is a work in progress and CEG economists are at the cutting edge.  Regulation raises many technical issues that challenge economics and law. Frequently, these cannot be settled by recourse to a settled body of literature, but must be analysed from first principles, drawing on new developments in theory and case specific data and facts. 

CEG is experienced in providing detailed cost analysis and pricing studies, advising on procedures that attempt to infer 'efficient costs', benchmarking studies, total factor productivity (TFP) studies, data envelope analysis and other such methodologies.  In the communications sector this includes building and reviewing complex LRIC models using hypothetical or actual costs of regulated businesses.  CEG also advises businesses on how to prepare submissions to regulators based on their own historical and forecast future expenditures — including identifying relevant cost drivers.  

CEG economists have worked extensively with regulated companies and regulators and bring this experience to bear in assisting regulatory teams and their legal counsel in drafting responses and submissions to regulators in Australia, New Zealand, Singapore and most of the EU Commission member states.

Recent regulatory and public policy assignments for CEG economists include:

• cost of capital analysis for numerous regulators, regulated businesses and industry associations
• benchmarking of efficient costs for regulated businesses
• analysis of related party transactions in the energy sector
• design of water trading frameworks
• efficient tariff design in the energy sector
• design of retail minus regulation in the telecommunications sector
• design of efficiency carry-over mechanisms for regulated businesses subject to incentive regulation
• examination of the potential for using light handed price monitoring instead of formal price/revenue regulation
• analysis of measures to mitigate market power in energy markets
• assessment of wholesale and retail competition in energy and water markets
• network unbundling in telecoms and energy sectors (including the ULL)
• assessment of cost allocation methodologies and cross-subsidy policies
• analysis of media and cross-media ownership rules
• development and assessment of top-down and bottom-up LRIC cost models
• analysis of regulation of national roaming services
• analysis of Universal Service Obligations (USO).