Economics & Regulation

The Economics & Regulation practice of Emerton has grown into one of the leading economics consultancies in Continental Europe.  We assist major corporations and infrastructure operators in their regulatory strategies and negotiations, regulatory proceedings, high-stake litigation and arbitration cases. We regularly collaborate with leading law firms and academics on litigation cases and regulation issues. We bring quantitative, financial and economic analysis, objectivity and industry experience on complex business and legal issues arising from regulation, litigation, price reviews or competition.

Our Economics & Regulation practice team is composed of former senior directors of European Regulators, former CEOs, economists, data analysts and strategy professionals. We combine quantitative analysis expertise with the comprehensive sector expertise of our industry practices.

Our clients value our regulation expertise and quantitative methodologies, as well as the clarity of our decision-driven analytics. We differentiate from pure economics firms as we come from strategy and business, not academics; and from generalist consulting firms with our fully-fledged in-house expertise,  capabilities and track record in economics & regulation.  Our team has a deep expertise in regulation, market design, litigation and economics consulting in the energy, transportation, telecoms and healthcare across Europe, the Middle East, Africa and Japan.

Regulatory Strategy & Negotiation Support

Understanding and assessment of the regulatory framework and regulation evolution

Adaptation or design of regulatory frameworks

  • Adaptation of remuneration schemes and incentive mechanisms: quantitative modelling
  • Market design: wholesale and retail market design: identification and evaluation of mid- and long-term effects
  • Elaboration and fine-tuning of position papers / slide-packs
  • Identification of potential supports within the regulator / public authorities

New tariff round preparation: definition of the negotiation strategy

Regulatory Due Diligence

Regulatory due diligence clarifies how and to what extent a business is directly or indirectly exposed to the evolutions of the regulatory framework.

Litigation & International Arbitration Support Expertise

The current context of profound disruptions impacting the European and global energy markets is conducive to trigger arbitration procedures related to long-term gas and LNG Supply & Purchase Agreements. These disputes are by their nature expert-evidence intensive, as they require extensive market, regulatory and pricing analyses.

We regularly support international energy players in their arbitration proceedings. Our independent experts work hand-in-hand with  international law firms and client’s teams to provide robust and clear analyses to support the case.


Advanced Modeling & Valuation

Emerton assists its client in advanced modelling and valuations:

Advanced modelling

  • Market modelling
  • Business modelling
  • Prices modelling
  • Scenarios modelling

Contract valuation

  • Gas Price Reviews
  • Quantitative modelling of the contractual scheme and market insights
  • Economic evaluation of contractual options and flexibilities

Business Valuation

Impact valuation

Damages valuation for litigation support

Support In REMIT Proceedings - Regulation

As the number of inquiries related to REMIT compliance is gradually increasing on European gas & power markets, market players who are under investigation of NRAs for alleged breach of REMIT need to rely on robust quantitative analyses from the very first steps of the pre-trial phase.

Emerton provides distinctive expert support to market players who are under investigation for alleged breaches of REMIT and potential market manipulation. Such alleged manipulative behaviors may notably include capacity hoarding, layering, spoofing or marking-the-close behaviors.

Emerton’s unique approach combines in-depth market expertise and advanced data analytics

In close cooperation with international law firms, we provide technical and economical expert support through the unparallel combination of market expertise in both gas & power wholesale markets and targeted use of advanced data analytics.

Our team of experts and data scientists provide quantitative and market-based insights resulting from the processing of large data sets including market orders, transactions and use of physical assets and infrastructures. Moreover, the use of advanced pre-processing of both market and infrastructure-related data enables to factor-in the still largely physical nature of European gas & power wholesale markets.

We are intervening from the pre-trial phase till the adversarial proceedings

We provide robust and opposable results through independent, fact-based and clear technical reports and analyses from support to preventive market monitoring to formal proceedings.

Regulated infrastructures strategy

Regulated infrastructures commercial adaptation

  • Value analysis of regulated services on various market segments: economic analysis, customer voice
  • Quantitative and qualitative benchmark of infrastructure-related services including both regulated and exempt infrastructure operators
  • Co-design and adaptation of regulated services, e.g. value proposal, tariff structure, customer flexibility

Growth avenues and definition of commercial

Mergers & Acquisitions
Support examples
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Our experts

Sébastien Zimmer

Partner
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Haithem Choukatli

Project Manager
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