Imrecon

Imrecon helps large users of a regulated sector or groups of users engage with the sector regulator to ensure that the regulator properly protects their interests. 

Typically, a regulator faces strong lobbying from regulated companies and their investors. Users sometimes find it difficult to fine enough common cause to organise effectively, and are in any event unfamiliar with the details of the regulatory regime and the policy issues at stake.  Even if they start to engage, because they do not always have a right to appeal, it can be difficult for user groups to get the attention they deserve from a hard-pressed regulator. 

However, they do have direct insights into many of the important issues addressed by a regulator during a price or policy review.  Increasingly, regulators are recognising that engaging with users is necessary to ensure policy decisions are properly informed and perceived as fully legitimate. 

Imrecon has a track record of helping users engage with regulators on more equal terms with those of the regulated businesses.

The issues Imrecon has addressed with users include:

• the cost of capital
• the balance of risk between users and investors
• the investment strategy of a regulated company
• the focus of incentive regimes on what concerns users most
• the level of headroom that is reasonable to allow for uncertainty in estimates and judgements