Posts tagged #Adrian Kemp

Big data reveals Uber is all upside

January 2018

The upsurge in Uber’s ride-sharing service has been resisted all over the world – mostly by licenced taxi interests, fearing the winds of competition would take away passengers.

In a show case of the unprecedented power of big data to deliver insights into ‘what’s going on?’ in a market, recently published HoustonKemp analysis shows those fears are misplaced.

Following drawn out regulatory and enforcement skirmishes, Uber’s ride-sharing service was finally legalised in New South Wales in late 2015. Since then, would be point to point passengers have been free to choose between a regular taxi or its close substitute, a ride-sharing service.

In a recently published study for the NSW Independent Pricing and Regulatory Tribunal, my colleagues Adrian Kemp and Howard Gu analysed millions of payment card transactions, seeking insights into how the point to point passenger transport services market in NSW has changed since the legalisation of ride-sharing services.

Their analysis shows dramatic increases in the use of point to point passenger transport services, but little change in the expenditure on rides taken by taxi. In a huge win for passengers, in just 18 months Uber has expanded the market by more than sevenfold – as illustrated below.

IPART graph.png

Hundreds of thousands of people in NSW are now opting to use a ride-sharing service on occasions when, before, they would presumably have either walked, caught a bus or train, or perhaps not travelled at all.

These extraordinary results underline the huge potential for markets to grow when new services are unleashed, and the enormous benefits to consumers from the ‘disruption’ that is ride-sharing.

Our report can be found here

Posted on January 12, 2018 and filed under Articles.

The development of electricity consumption

June 2017

Stuart Morrison recently assisted Adrian Kemp in preparing visuals for his talk at Power & Electricity World in Manila last month. Stuart created the chart below showing the relationship between electricity per capita, GDP per capita and total national emissions. The visualisation of this data reveals some interesting trends, including:

  • the momentous rise of electricity consumption per capita in China – especially over neighbouring Malaysia;
  • the decrease in Greece’s GDP per capita from 2009; and
  • the decrease in electricity consumption per capita in Australia – driven by take-up of rooftop solar-PV and more efficient appliances.
Posted on June 20, 2017 and filed under Presentations.

National Disability Insurance Agency price review

March 2017

We are very pleased to be helping the National Disability Insurance Agency (NDIA) with the review of its price controls. Sam Forrest, Luke Wainscoat, Adrian Kemp and Greg Houston will design an impact assessment framework to assess potential changes to the NDIA’s price controls. They will draft a consultation paper on the options being considered and apply the impact assessment to prepare recommendations to the NDIA on the changes it should make to its price controls in 2017/18. For more information on the review please click here.

Posted on March 9, 2017 and filed under Announcements.

VCR estimates and transmission reliability

November 2016

We were engaged by TransGrid to determine Value of Customer Reliability (VCR) estimates suitable for customers experiencing low probability but high impact supply outages in the Sydney CBD and Inner Suburbs regions.  We were asked to determine these VCR estimates by drawing on existing, publicly available VCR studies.  The values we derived were $90/kWh for Inner Suburbs customers and $150-$192/kWh for customers in the Sydney CBD. 

IPART has subsequently adopted our $90/kWh estimate in recommending reliability standards to apply to the Inner Sydney transmission network from 1 July 2018, available here.

Posted on November 2, 2016 and filed under Reports.

New Singaporean office

November 2016

We are pleased to announce the relocation of our Singaporean office to Asia Square Tower 1. The move to a new, permanent location reflects our ongoing commitment to expanding our presence in Singapore and the wider southeast Asian region. We hope to welcome you to our offices in the near future.

Posted on November 1, 2016 and filed under Announcements.

Reforming remote and regional road funding

October 2016

Adrian Kemp and Martin Chow led a team of HoustonKemp economists that examined potential road funding reform options and the implications of these reforms for remote and regional roads for Austroads. The report also provided a snapshot of current and past road related revenue, expenditure and funding to inform the debate. A copy of report can be found here.

Posted on October 27, 2016 and filed under Reports.

Review of maximum fees and site occupation charges for cruise ships in Sydney Harbour

September 2016

Adrian Kemp and Daniel Young led a team of HoustonKemp economists assisting the Port Authority of New South Wales to engage with the Independent Regulatory and Pricing Tribunal’s (IPART) review of maximum fees and site occupation charges for cruise ships in Sydney Harbour. We helped the Port Authority prepare its responses to IPART’s issues paper and draft decisions, and to understand the implications of IPART’s emerging views on its business. Adrian and Daniel attended IPART’s public hearing on this topic on 23 August 2016. A transcript from the hearing is available here.

Posted on October 6, 2016 and filed under Reports.

Adrian Kemp appointed to the Economic Society of Singapore’s 60th Council

April 2016

Adrian Kemp is pleased to announce his appointment as a council member to the Economic Society of Singapore’s 60th Council. The ESS was established in 1956 as a non-profit organisation, aimed at encouraging like-minded parties to collaborate on economic issues. Since its inception, it has grown to host annual events such as the Singapore Economic Policy Forum, publish the quarterly Singapore Economic Review and develops the interest and understanding of economics students through an annual seminar series and essay competition. Adrian looks forward to collaborating and contributing on this year’s council. More information about the ESS can be found here.

Posted on April 12, 2016 and filed under Announcements.

The Role of Renewable Generation and Energy Storage in a Diversified Power System

August 2015

Power systems where there has been a large rollout of small scale solar photovoltaics has had a profound impact on grid-sourced electricity consumption and load shapes, with financial implications for existing electricity generators and networks. The prospect of large and small-scale energy storage, which can make renewable generation a technically viable alternative to supplying peak power needs, has the potential to disrupt conventional thinking about the economics of supplying power.

Adrian Kemp presented a paper on the role that renewable generation and energy storage might have in a diversified power system at the Renewable Energy World – Asia conference held in Bangkok. The paper examines the role that renewable generation plays as a hedge against future rises in thermal generation fuel prices, and the value that large-scale energy storage creates when combined with large-scale renewable generation. Adrian’s paper can be found here.

Posted on August 31, 2015 and filed under Presentations.

Implications for Jemena Gas Networks (NSW) of Increasing Competition in the Consumer Energy Market

April 2015

Adrian Kemp, Luke Wainscoat and Richard Grice prepared a report for Jemena Gas Networks (JGN) that examined the extent to which there is an increased opportunity for substitution from gas to electricity, and the implications for the incentives that JGN faces in operating its natural gas network in NSW. Our report can be found here, starting at page 14.

Posted on May 5, 2015 and filed under Reports.

Competition Policy Review Submission

November 2014

HoustonKemp's submission in response to the Competition Policy Review’s draft report was published shortly before Christmas. We caution that the proposed changes to the unilateral conduct (section 46) provisions of the Competition and Consumer Act offer few, if any, economic benefits, and would give rise to a long and costly period of uncertainty as to how the revised law may be applied. In contrast, the panel’s focus on the need for microeconomic reform in road transport and the delivery of human services has the potential to unlock the kind of productivity gains that followed the 1990s’ structural and regulatory reforms in the electricity, gas and water infrastructure sectors. Our submission makes a number of practical suggestions to guide future, productivity-enhancing reform in both human services and road transport.

Posted on November 20, 2014 and filed under Reports.