Moffatt Associates


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Measuring Economic Impact

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Monitoring Business Energy Costs and Efficiency

In 2005, Moffatt Associates devised a set of research questions and methodology to explore and evaluate trends in business energy costs, actions taken by companies to increase energy efficiency and the views of industry on the likely business implications of EU and UK energy policy. This was the first time that any serious attempt had been made to analyse the impact of rising energy costs on UK business.

Since 2005, Moffatt Associates has researched and built a UK business contact database covering 500 major energy users and 1000 SME's. Every year we track trends by carrying out 200 in-depth interviews with senior energy management managers across a representative sample of public and private sector organisations.

This survey is widely used by the UK Government, Ofgem and industry as the benchmark reference for how industry is managing energy efficiency and carbon emissions reductions. Our UK business users survey is publicised widely and is the most comprehensive survey of its kind in the EU.

The survey is currently sponsored by RWE npower in association with the Major Energy Users Council (MEUC) and the UK Federation of Small Business (FSB).

E- Control/ERGEG

In 2007 Moffatt Associates were commissioned by E-Control (the Austrian energy regulator) on behalf of the European Energy Regulators Group (ERGEG) to investigate and assess the response of investment banks and analysts to DG TREN’s proposals on the ownership unbundling of TSO power and gas networks. (3rd Energy Package)

We conducted two confidential focus groups sessions in London with 20 investment banks/analysts and prepared an analysis of our findings. The main conclusions of our research were as follows:

  • The 3rd Package will improve energy market competition and full-ownership unbundling of TSO networks is the most effective way of achieving this
  • Greater wholesale market transparency regarding network capacity, energy flow data and transactions will increase market competition in the EU energy market
  • Full or partial privatisation of state-owned TSO assets (e.g. EDF) is a workable option
  • Under the Commission’s ISO second option, the ISO should be allowed to raise outside capital to fund new network investment
  • Clear and consistent guidelines on how to set regulated rates of return on TSO networks are needed to facilitate ownership unbundling
  • The proposed new Agency of National Regulators (ACER) should define a route map for ownership unbundling across the EU

These results were announced at an ERGEG press conference on 30 January 2008. In addition, we prepared an economic analysis of the five key economic and financial arguments for ownership unbundling.