Governments and other agencies pursue liberalization of gas and electricity markets worldwide. Expert economic advice is essential to understand the benefits and costs of different policy options, the extent to which industry restructuring is desirable and the need for effective forms of regulation. The process of liberalization of a vertically-integrated industry requires determining which assets could be potentially exposed to competition, which monopoly segments of the vertical chain should be split and how to grant access to the incumbent’s facilities to competitors.

Microeconomix advises regulated companies, users of regulated infrastructures and regulators on all these issues. We have experience in analyzing public utilities industries (electricity, natural gas, etc.) in natural monopoly position supplying products or services with high social and political values. We help our clients to take advantage of the opportunities arising in the context of the fast-changing environment of the regulatory system in public utility industries, while respecting all the explicit and implicit regulatory constraints.

Microeconomix has a sound experience in pricing policy including the design of prices for consumers and the design of network tariffs for the transmission and distribution of energy. Our professionals have extensive experience in applying incentive regulation to network industries. They understand well the process of market liberalization and the schemes introducing incentives for cost minimization and investment. We also work on other subjects related to vertical separation, essential facilities and access requirements. We help our clients to assess the costs and benefits of ownership separation. We also evaluate the impact of interventions such as non-discrimination conditions, and universal service obligations.

Our professionals use microeconomic tools to assess the effects of existing regulation and to evaluate the impact of the new coming European energy policies. We provide economic consulting on market integration, unbundling and transmission system operator design and exemptions from Third Party Access for new infrastructure.