Economic research services

Tender description

NI Water wishes to engage subject matter experts to advise on economic regulatory matters throughout the PC15 price control process and to assist with aspects of the PC21 Business Plan. In particular, advice is sought on: (i) Suitable econometric cost assessment techniques which can be used to estimate NI Water's relative efficiency and to recommend appropriate catch up targets; (ii) Carry out independent assessment of total factor productivity (TFP) and real price effects (RPE) assumptions and make recommendation to NI Water regarding same; (iii) Aspects of NI Water's revenue allocation framework used to support the design of regulated customer tariffs. While not an exhaustive list, opinion and advice may also be sought on: (i) Identification of any unique attributes or specific characteristics that may give rise to a special factor and assist NI Water in the preparation of Special Factor claims; (ii) The impact to NI Water, its customers and funding providers of a change in the basis of inflation from RPI to CPI; (iii) NI Water's cost of capital, which will involve separate assessments of the cost of debt and cost of equity components and which reflect NI Water's unique funding basis and governance structure; (iv) Approaches to capital efficiency; (v) The approach taken by the Utility Regulator on the above matters in their draft and final determinations; (vi) Development and delivery of a data analytics/statistical analysis training programme. It is envisaged that the contract will begin on or soon after 1.7.2016. Work carried out throughout the term of this contract must be undertaken by Key Personnel for whom CV's have been submitted during this tender process. Where it becomes necessary to replace someone on the contract, e.g. where they leave the company, their replacement on the contract must be in agreement with NI Water.