Regulatory Economics Analyst

Details from the job capture form: Overall Purpose of job In one sentence, describe the overall purpose of this job. The objective of the role is to support the regulation team with quantitative analysis and modelling of costs and factors affecting these costs. This will include understanding the results of internal and external benchmarking of SGN’s activities and in particular Ofgem’s Cost Assessment models.

List the key responsibilities of the job (no more than 5). The key responsibilities of the job are:

1. Using, evaluating and developing Ofgem’s benchmarking/ econometric models, ensuring outputs are thoroughly documented and changes justified with evidence of why the changes are relevant/ robust.
2. Working with (and seeking out novel) internal and external datasets that will inform our understanding of factors driving cost variations within SGN, and in comparison with other GDNs
3. Participating in internal research projects to support the businesses understanding of factors affecting costs variation and efficiency, such as benchmarking and regressions at operational unit level.
4. Being able to interpret the analysis and identify areas of strength and weakness which can subsequently be used by senior management to make strategic business decisions.
5. Proactively analyse and research some of SGNs unique factors such as regional costs, real price effects, productivity and determine how these continue to impact our cost assessment outcomes. Expertise Describe what, if any, academic qualifications are needed in this job? The job holder is expected to be educated to degree level, ideally in economics or another quantitative related discipline, or to have demonstrated that they can work with complex financial concepts. We would anticipate the job holder would have a desire for professional development, with a desire to undertake econometrics and regulatory finance courses, and potentially a CIMA or Certified Analytics Professional qualification. Describe what technical wledge/experience are essential in this job?

• Excellent numerical skills with advanced Microsoft Excel skills.
• A good grounding in statistical and analytical methods, with an interest in or experience of regression modelling and the ability to apply appropriate tools and techniques to assess model performance and extract insights.
• Knowledge of Stata modelling software or other packages like R-studio or Python
• Ability to work confidently with internal and external data sources, including data held in a variety of formats (such as Excel files, datasets, and relational databases), understanding how to combine and reconcile them, assess data quality, and determine what additional information is required when investigating emerging issues.
• Collaborative communicator: able to work with multiple internal stakeholders and maintain constructive relationships; learning from subject‑matter experts to understand the root of an issue; and communicating their own analysis to non-statistical colleagues in a clear way that aids strategic discussions and decision making.
• Knowledge of UK Regulatory process and comparative analysis used by regulators.
• Reasonable understanding of the SGN Business to interpret results and alternative cost drivers In terms of skills, qualifications, job knowledge and experience, what are the key differences between…. this job and the one above it? The role centres on carrying out analytical tasks rigorously and presenting findings in a clear and accessible way, ensuring colleagues across the Regulation team can understand and use the outputs. The post‑holder will bring curiosity and thoughtful interpretation, but will work under the guidance of the Econometric Manager, who provides the strategic framing and quality assurance. this job and the one below it? This is a unique role in itself; however, it would be assumed a role below this would be learning the technical skills of running the Ofgem benchmarking models but require support throughout the process. The job holder of any role below this one would not carry out any work to develop the models nor be required to interpret the results. Complexity Generally speaking, are the typical problems encountered in this job ….
• Mostly routine, with straightforward, rehearsed/scripted solutions, or
• Regularly non-routine / complex, with solutions requiring analysis, experience and knowledge. The job will encounter a mixture of both, there will be the routine running of the standard models however there will also be non-routine and more complex analysis required to understand the output of the models. The job holder will be expected to differentiate where a standard approach is sufficient and where a more complex solution is required. to deal with themselves. Describe a typical problem that the job holder is expected to deal with themselves. Running of the model with varying parameters. The job holder may be requested to run models that are out with the standard 26 models set out by Ofgem. In doing this they will need to ensure they are including only the relevant costs and associated workloads where applicable. They will be required to identify where models could be made statistically more robust and potentially used within SGN for internal benchmarking in the future. At certain points in the regulatory cycle Ofgem outputs require scrutiny to check for formula errors or logic errors. While some of these checks may require consultation with colleagues to assess intent, the basic checks of formulas and cross references with BPDT data sources should be carried out fairly independently by the role holder. advice on. Describe a typical problem that the job holder will need to seek advice on. A typical situation requiring advice is when the model identifies patterns or anomalies that the job holder can recognise but not fully explain. While they are expected to understand how costs behave within the modelling framework, it may be that some model outputs require an understanding of operational or engineering factors beyond the Econometric Analyst’s experience. The job holder may need to consult with the Econometrics Manager, and/or colleagues with operational or engineering expertise to assess whether certain results are plausible and to determine what further investigation is needed. for someone else to deal with. Describe a typical problem that the job holder will need to escalate for someone else to deal with. Some elements of the input data—such as regional indices—come from external sources, and the job holder is not expected to thoroughly verify whether this external data is correct. However, they are expected to recognise when the model behaves unexpectedly. If, during model runs, the analyst notices that certain inputs are producing relationships or patterns that do not appear credible, they should flag this and escalate the issue to relevant parties for further review. The analyst finds that external benchmarking, internal data, and regression outputs point in different directions. Because resolving the conflict requires strategic judgement and deeper sector knowledge, they escalate for a decision on which evidence base should be prioritised. What is the most difficult aspect of this job? The most difficult aspect of the role is ensuring that the data used in the modelling is appropriate, up‑to‑date, and sourced correctly. Because the underlying drivers behind costs — and the practical relationships that influence them — are not always fully known, it can be challenging for the job holder to judge when the model is producing outputs that do not reflect the true nature of the business. Identifying when a pattern arises from genuine business factors versus when it stems from data quality or input issues is often the hardest part of the job. One of the most challenging and important aspects of the Econometric Analyst role is acting as a bridge between the technical modelling and the wider business. The analyst must take complex econometric outputs and translate them into clear, meaningful insights that colleagues in the Regulation team — many of whom are not modelling specialists — can understand and use. Equally, they need strong listening skills to draw out the practical, operational knowledge held by business experts, understanding the real-world context behind the data and take that into account when framing and delivering their analysis / modelling. Does this job require someone who can think strategically/ tactically? This role primarily requires strong tactical thinking, with an awareness of the wider strategic context. Much of the job will focus on delivering high‑quality analysis using established frameworks, carrying out detailed data work, and performing thorough QA checks. However, because ambiguity in the business and regulatory environment can influence the analytical topics being considered, the job holder should be mindful of the strategic context and how their analysis and insights connect to the bigger regulatory and business picture.[JB7] [DB8] Impact If the job holder ‘gets things very right, or very wrong’, how far reaching would this be inside SGN? The outcome of benchmarking modelling is reported to senior management and to the Exec team. It is therefore a requirement that the results should be accurate, robust and can be relied upon to inform strategic decisions. If the detail is incorrect it could lead to incorrect decision making and if applied internally, incorrect setting of targets. If the job holder ‘gets things very right, or very wrong’, how far reaching would this be outside SGN? If the input is very wrong it will require the rectification and correction by the jobholder’s manager distracting them from strategic analysis that will add more value to SGN; and creating inefficiency within SGN and potentially poor decision making. While modelling detail is unlikely to be made publicly available, we may at times, use the results to frame messaging and communications with the Regulator. If the output is incorrect this could lead us to communicating suggestions on the modelling that may be incorrect and result in doubts about the credibility of points being made with Ofgem and / or a lower allowance being awarded than might have been possible. To what extent does the job directly contribute to departmental/company objectives? The output of the benchmarking models illustrates how we as a company compare to other DNs, or in internal models, how different parts of the business (e.g. depots) compare. The output of our testing of model adjustments can contribute to the overall strategic decisions as it may be used to determine areas of the business in which focus should be placed to drive efficiency. What timeframe does this job mainly operate within (ie. does it deal mainly with current, day-to-day issues, or deal regularly with long term change or strategic issues?) The analysis produced in this role supports long‑term strategic discussions on business efficiency and future price control outcomes. However, the job holder’s work is primarily tactical in nature, especially in the near term — running Ofgem and (potentially) CMA models, checking data quality, and analysing outputs. As the regulatory cycle progresses, the role will include research with business units to understand operational challenges and identify efficiency opportunities. While this analysis contributes to longer‑term strategic thinking, the job itself is rooted in detailed analytical delivery, carried out under the guidance of the Econometric Manager and Regulatory Finance Manager. Describe the most impactful decision(s) the job holder will typically make. Advising whether the Totex allowances proposed by the regulator are based on the most statistically robust models and data Influence Who does the job holder interact with within the business on a regular basis? The job holder interacts with peers and line manager on a regular basis. Who does the job holder interact with outside the business on a regular basis? On the whole, the role is an internal role. There will be the opportunity to work with external data – like in ONSs Secure Research Service and BCIS data , but there will be limited interaction with these providers. There will be the opportunity to engage with economic consultants, as the research programme develops. In time the job holder may get the opportunity to participate in the Cost Assessment Work Groups (CAWG) held by Ofgem and will be expected to actively contribute to this group under the guidance of the Econometric Manager and the Head of Regulatory Finance. How does the job holder interact with these stakeholders and to what level? (For example, are they exchanging information, building rapport, enhancing SGN reputation, handling complaints, influencing and persuading, conducting complex negotiations?) The job holder will exchange information where relevant, express views on the cost assessment process to assist internal business leads in their decision making and, in time, to assist Ofgem in their GD4 reviews. The job holder works closely with the external consultant, building a good rapport, and exchanging information. Resource – Who /what are they responsible for? (Use real numbers, values and examples if possible) How many, if any, people does the job holder manage / supervise? No specified direct reports however, the job holder may need to manage virtual teams set up to look at benchmarking across the business and the outputs of consultants If so, describe at what level this management / supervision is undertaken (eg. do they deal with quality control, work allocation and planning, coaching, recruitment, ‘hard’ people management issues such as sickness absence, conduct, capability etc.?) The job holder will be expected to use their influence to support a better outcome rather than direct management of people. What value budget does the job holder set, manage or spend? The job holder will not have a direct budget however they will be expected to advise on whether an outcome can be achieved more cost effectively. What assets / equipment does the job holder manage or control? The job holder has management over software related to the Stata modelling and cost models for the purpose of running the regressions. What level of projects does the job holder manage or control? The job holder will be expected to be aware of the financial costs of consultancy support and managing their time and influence to minimise the need to draw further on external resource.