We were commissioned by Citizens Advice UK to investigate the mechanisms that could be used to limit or share the financial risk for energy bill payers in the context of highly anticipatory energy infrastructure investments in GB.

We developed a compendium of risk-allocation tools and, for each, we analysed: the suitability of the mechanism for different types of investments and projects; the extent (and the type) of risk allocated to consumers; the relative advantages and disadvantages of the tool; and how they affect the cost of capital. Each tool also included a case study of the tool being applied in practice.