competition & regulatory advice | covec

By: Covec  06-Dec-2011
Keywords: Electricity, Telecommunications, Economic Development

Competitive markets are extremely powerful drivers of human progress. However, they need to be supported by social constructs such as property rights, and do sometimes fail. In some situations, the competitive process itself is threatened; in other cases regulation can improve economic wellbeing. Covec understands these issues deeply, which is why we are at the top of so many contact lists for work in this area.

Analysis of proposed Air New Zealand - Virgin Alliance

Ministry of Transport (NZ)

Covec undertook a quantitative competition and welfare analysis of the proposed trans-Tasman alliance between Air New Zealand and Virgin.

Competition between supermarkets

Expert testimony on economic issues arising from a proposal for a new Pak'nSave supermarket at Wairau Rd on Auckland's North Shore, before the Environment Court.

Competition law principles for telecommunications and broadcasting

Macao Telecommunications Regulator (DSRT)

Review of the telecommunications and broadcasting industries in Macao, and development of principles to guide drafting of competition law for these sectors.

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.

Economic impact of retail development

Analysis of the impact of a proposed development at Takapu Island in the Wellington region on the viability of nearby centres.

Efficient transmission pricing

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

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

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.

Interchange fee setting and other credit card network rules

Economic advice on competition issues arising from the setting of interchange fees in open (four-party) credit card networks.

Liberalisation of telecommunications in the Solomon Islands

Solomon Islands Government

Negotiating an early end to the monopoly telecommunications franchise, including design of regulatory regime, interconnection rates and estimation of fair compensation.

Liberalisation of telecommunications in Vanuatu

Negotiation of an early end to the monopoly telecommunications franchise including compensation modelling. Provision of complete regulatory service for first 18 months of the new competitive regime, including design and implementation of universal access policy.

Local loop unbundling

Provided advice on price benchmarking and reviewed modelling of the economic effects of local loop unbundling in New Zealand.

Merger analysis in the carpet industry

Minter Ellison Rudd Watts

Review of the competition implications of a proposed merger in the carpet manufacturing sector.

Merger analysis in the chicken industry

Economic submissions to the Commerce Commission on the competitive effects of a proposed acquisition of Brinks chicken companies by Tegel.

Merger analysis in the waste industry

Detailed empirical modelling of the cost and demand for different forms of waste collection in cities of varying sizes, including modelling economies of route density.

Tax and depreciation issues in regulation

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.

Universal service costs

Analysis of economic issues associated with the TSO instrument under the Telecommunciations Act 2001, including matters related to technological optimisation.

Keywords: Economic Development, Electricity, Federal Court, Merger Analysis, Modelling, Telecommunications,

Other products and services from Covec


economic modelling & analysis | covec

These include the regional tourism forecasts which are produced as part of the Ministry of Tourism’s forecasting programme, tourism analysis and forecasts developed for use in strategic planning processes and detailed analysis of the tourism impacts generated by major events.


forecasting & projections | covec

Covec is highly skilled at applying all modern forecasting techniques to assist clients with developing plans and strategies, including developing econometric and time-series models, economic modelling and stakeholder consultation. Our forecasts also incorporate qualitative information from industry stakeholders and other credible sources, to capture effects that are not easily incorporated into quantitative models.


litigation support | covec

In such cases, Covec can supply expert testimony, locate other experts, work with solicitors and barristers to formulate the case, and attend hearings for the purpose of cross-examination. 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.


policy & cost-benefit analysis | covec

This project estimated the economic impact of the port by analysing the effect of its operations on the regional economy. Ports of Auckland is the largest port in New Zealand, carrying 37% of annual trade.


commercial transaction support | covec

We have updated the forecasts several times since then to support various processes, including the partial sale of Cairns Airport to Auckland Airport in 2010 and a substantial debt refinancing process in 2011. Covec was commissioned by a consortium of investment banks to generate annual passenger forecasts to 2030 to support the purchase of Cairns & Mackay Airports in Northern Queensland.