Today’s regulation often is based on the Fixed Asset Base, a certain Weighed Average Costs of Capital and a comparison of the efficiency. In our view this leads to inefficiency instead of efficiency because Utilities are forced to keep the Asset Base on a high level and have to invest to much. However, today Regulation is is a fact. Here the revenues side is even more important than the costs side. It is very important to use the correct value of your assets and substantiate your cost price.  

Approach 1: Using regulation rules:
S&G can help you to determine a correct RAB, using technical files, taking into account reduction effects due to regulation rules. In general this leads to much higher tariffs. S&G can help you - within the constraints of these Regulator rules - to optimize capital and operational costs.

Approach 2: Changing regulation rules:
To show that today’s regulation is often contra-productive on the areas of investments and maintenance. S&G can provide the technique to compare utilities, also taking into account the cost of the according position of the life span.