Advice on Electricity from Economic Consulting Associates


ECA has been advising regulators, investors, governments and international finance institutions since its start. We apply economic principles and industry knowledge with best international practice, complemented by a rigorous quantitative capability to advise on all key aspects of electricity markets.

Our expertise includes the development of regulatory frameworks, setting of tariff levels and structures, designing markets and associated market rules, decarbonisation of power systems and supporting investors in asset valuation and market and regulatory risk assessments.

We have developed strong in-house power market models and hold licences for Energy Exemplar’s PLEXOS electricity market model.

Our focus areas include:

  • Power market modelling (PLEXOS and Wairoa)
  • Electricity tariff design and regulation
  • Power asset valuations
  • Battery energy storage appraisals
  • Price control support
  • Sector reforms and restructuring
  • Electricity market design and reform to facilitate RES integration

For more information please contact our practice lead William Derbyshire.



Price control review analysis, UK

ECA helped with a non-standard price review for Ofgem, to consider the issues arising from government policy for the comprehensive introduction of smart meters for gas and electricity to UK households for the dominant provider of traditional gas meters.

TSO and DSO allowed revenue determinants

We have been appointed by the Energy Regulators Regional Association (ERRA) to assist in documenting, comparing and evaluating the regulatory approaches adopted by ERRA member organisations in setting the allowed revenues for electricity transmission and distribution businesses.

Electricity market settlement rules, Ireland

ECA supported the Irish regulators in their approval of the tariff methodologies for System Services in the new market. The focus was on the rules determining availability payments of eligible generators. The team modelled potential inefficiencies in the rules and suggested potential changes.

WACC of electricity networks in Greece

Greece’s Regulatory Authority for Energy (RAE) contracted ECA to estimate the weighted average cost of capital (WACC) for the electricity transmission system and distribution network operators.

Support to Ofgem finance team

ECA staff was seconded at Ofgem to support the ongoing activities of Ofgem’s RIIO Finance. Activities included developing licence modifications and consequent changes to a Price Control Financial Model and Handbook.

Tariff methodology for ancillary services, Ukraine

Ukraine requires an interim regime of regulated tariffs for ancillary services. This Energy Community funded provided the Regulator with a tariff methodology. This methodology also required a process for selecting eligible providers and assessing degree of eligibility and a process for determining how availability is measured for payment.

Electricity sector review, Bulgaria

Following the major crisis in Bulgaria’s power sector, which was a prime factor in the collapse of the Government of Bulgaria in 2013, ECA was contracted by the World Bank at the request of the caretaker government to review the major problems in the power sector and provide policy advice.

Electricity and cost of service study, Indonesia

ECA was responsible for the estimation of long-run marginal costs for transmission and distribution, the review of the efficiency of the current tariffs, the development of a revised set of tariff structures and the assessment of improvements to tariff adjustment mechanisms.

Hydroelectric power plant assessment, Georgia

A consortium led by ECA performed a market study to review the regulatory arrangements and revenue prospects of a pumped storage hydro plant. We modelled both the Turkish and Georgian markets to determine the optimum contracting strategy and to assess risks in both markets.

Electricity reform, Egypt

Egypt wanted to learn from the experience of comparator countries in developing a transitional road map to a competitive electricity market. The objective of this consultancy was to provide the Government of Egypt with a rapid digest of the experience of a handful of relevant international comparator countries to inform Egyptian thinking on two policy issues that required urgent definition: the road map for transition to a competitive electricity market and parameters for the establishment of an energy planning entity.

Net metering, Sri Lanka

ECA was engaged by IFC to carry out a comprehensive market assessment of the net metering based rooftop solar PV market in Sri Lanka. The study provided a complete picture of the current market and the growth potential for various stakeholders, with the intention of facilitating the development of the market in a more sustainable manner.

Electricity sector planning, Peru

ECA participated in this study by providing international best practice insights of the structuring and organisation of energy planning. We assessed the structure of the planning process and its governance in the UK, Brazil, Colombia and Chile, with particular emphasis on the distribution of planning responsibilities among public entities and the participation of market participants in the process.

Electricity network pricing, Northern Ireland

The objective of the assignment, for the Utility Regulator of Northern Ireland, was to identify and model the impact of network charges and their impact across different customer groups in different jurisdictions (Republic of Ireland, Great Britain and Northern Ireland) in order to aid policy debate in relation to tariffs and associated levies.