energy

Covec’s work on energy issues includes market analysis, forecasting supply, demand and prices, investment appraisal, and environmental and regulatory issues.

Relevant Skills & Services:

competition & regulatory advice

forecasting & projections

litigation support

commercial transaction support

policy & cost-benefit analysis

Examples of Our Work:

Coal Prices in New Zealand Markets

Ministry of Economic Development (NZ)

An analysis of current and expected future prices of coal in domestic and export markets

coal-price-report.pdf

Competitive effects of a vertical merger

Australian Competition and Consumer Commission

Expert testimony on the competitive impact of a proposed vertical merger in the Victorian electricity industry, before the Federal Court in Melbourne.

Efficient transmission pricing

Mighty River Power

Economic analysis of the efficient treatment of loss and constraint rentals arising from nodal pricing of electricity.

Energy demand forecasts

Ministry of Economic Development (NZ)

Analysed historical energy demand by a number of industrial sectors and provided projections of future energy demand and greenhouse gas emissions.

heavy-industry-energy-demand.pdf

Energy efficiency policy

Electricity Commission

Energy Efficiency & Conservation Authority (EECA)

Decomposition analysis of historical energy intensity, modelling the impacts (costs and benefits) of energy efficiency policy, including sector and technology specific assessments (commercial buildings, electric motors).

Forecasting demand for transmission grid services

Transpower

Analysis of trends and step changes in demand for electricity at grid exit points, several projects.

Forecasts of fuel consumption in New Zealand

UBS New Zealand

Covec produced forecasts of fuel consumption in New Zealand as part of the Shell New Zealand sale process. Annual forecasts to 2030 were generated for the retail, commercial, aviation and marine sectors, and for various sub-markets within each of these sectors.

Hedge contracts for electricity

Ministry of Economic Development (NZ)

Analysis of the market for electricity hedges, the influence of market structure and possible interventions to improve market depth and liquidity.

Input methodologies for regulation

Commerce Commission (NZ)

Peer review of a discussion paper setting out the Commission's views on input methodologies pursuant to the 2008 amendment to Part 4 of the Commerce Act.

Merger analysis in the oil industry

Minter Ellison Rudd Watts

Analysis of whether the sale of Mobil's general aviation refueling business to a competitor would substantially lessen competition.

Tax and depreciation issues in regulation

Commerce Commission (NZ)

Analysis and expert testimony on the economic implications of alternative treatments of taxation in the assessment of gas pipeline regulation, before the High Court in Wellington.