INTRODUCING ECONOMIC INSIGHT'SNETWORK COSTS FORECASTING MODELPlease find our contact form below
Economic Insight is delighted to announce the launch of our Network Costs Forecasting Model. Our product provides 5+ year network charge forecasts at a granular bill payer level, helping energy suppliers better understand, quantify, and manage the financial risks associated with network charges on customer bills.
As investment accelerates to support the transition to clean power, network charges are becoming an increasingly significant component of customer energy bills. These charges are highly sensitive to factors such as inflation, interest rates, and network performance, creating substantial forecasting uncertainty for suppliers.
Our historical analysis of existing publicly-available network charge forecasts showed material differences between forecast and outturn charges. Our more sophisticated forecasting approach significantly improves forecasting accuracy, relative to existing methods.
Key features of our Network Costs Forecasting Model include:
a detailed bottom-up methodology based on network allowed revenues and regional modelling, including tRESPs;
quarterly updates across the full model; and
granular and user-friendly outputs that map directly to customer bills, with bespoke delivery methods available.