Significant experience in regulation and incentive design in a range of sectors.
Network and Infrastructure
Critical network and infrastructure markets may be regulated where they are regarded as “natural” monopolies that need to fulfil wider public objectives. These sectors may include, for example, electricity, water, transport or communications services. Recent discussion has extended the discussion to digital networks and internet. These markets may be regulated in respect of the prices they may charge, returns they may earn, or in respect of provisions to firms seeking access to their networks.
Kroll’s regulatory experts have experience in regulation and incentive design in a multitude of sectors. Experts within Kroll have a detailed understanding of best practices and existing regulatory frameworks for regulation of network sectors in various jurisdictions. Kroll experts advise clients in relation to economic incentive and tariff setting, impact of regulatory proposals, preparing expert regulatory testimony, assessing interoperability or cost allocation issues, and assessing operational or structural separation issues.
Kroll’s team includes experts who can assist in the development of financial models of the nature employed by regulators, covering, for example, operating costs, capital expenditure, efficiency assumptions, volume projections, cost of capital and finance ability issues.
Kroll’s experts are leaders in the field of financial services regulation, and also in behavioral economics, and are well-placed to help assess regulatory decisions made in the sector and their impact on consumers.
Kroll’s economists have a detailed understanding of the emerging body of behavioral economic literature; they are able to gather and analyze consumer and business data and can develop detailed models of consumer behavior and customer decision-making in the financial services sector. Behavioral economics is used heavily by financial conduct regulators seeking to protect users of financial services from exploitation or exclusion. Financial market inquiries by regulatory bodies rely, often, on detailed behavioral models. Kroll’s experts can support clients through the full course of financial conduct inquiries.
Kroll can also assist in relation to designing and executing surveys to gather consumer-level information. The team can support clients through the survey design process (to ensure it elicits unbiased results), survey implementation and subsequent data analyses.
Get in touch with our regulatory disputes and advisory experts.