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Dr. Lo Passo, head of the Rome office, has more than twenty years of experience advising clients on competition, regulatory design and commercial litigation in energy, transportation, telecommunications, and other industries in Italy and throughout the world.

Formerly a Member of the Council of Experts for the Italian Treasury and a Senior Advisor on energy to the Italian Ministry of Foreign Affairs, he has broad experience in global privatization processes. Dr. Lo Passo had worked on behalf of leading companies, investment banks, infrastructure funds, and institutional bodies in major European countries, Turkey, South Africa, and India. He has advised clients on four party schemes interchange fees, state aid projects, tariff design, cost of capital estimation, damage quantification, network codes, revenue neutrality mechanisms, unbundling of regulatory accounts, and incentive mechanisms for renewable energy sources. He has also supported clients in defining their regulatory strategy during market reforms. Dr. Lo Passo has authored numerous articles for technical journals.

Representative Engagements
Implementation of a new entry/exit tariff system in Austria
For a major pipeline, assisted in implementing a new entry/exit tariff system imposed by the Austria Gas Act. The engagement included an analysis of the criteria for tariff calculation which will be put forward by ECA and drafting proposals on those criteria and assistance in the discussions with the regulator on the calculation of the regulated revenues of the company.
Assisted the Greek TSO in the definition of the Greco Security of Supply Levy
The engagement included: a review of the contracts in place and internal planning with reference to the possibility of interruptions in the event of emergency; an assessment of the feedback received from RAE or from other stakeholders through the public consultation; the evaluation of alternative methodologies for collecting; and measuring contributions to the Security of Supply.
Damages related to a tariff freeze affecting a toll road company in Italy
Provided damages quantification to a toll road company related to a tariff freeze imposed by the Italian Government. The study analysed the rise of the cost of debt caused by the increased regulatory risk perceived by the market and the increased cost of equity required to cover the higher risk.
Damage quantification in an international arbitration in South America for a power producer
The project required estimation of revenues lost and costs incurred by a power producer due to delays in the delivery of a power plant by a EPC contractor. Rebuttal of the claim presented by the contractor.
Implementation of a price cap mechanism for an Italian airport
For a major Italian airport, assisted in the implementation of its new price cap mechanism. Included data analysis testing sensitivities on the regulatory financial model, drafting notes, and attending meetings with the Regulator, the Ministry of Transportation, and the Treasury.
EC investigation of ground handling services

Analysis on whether the investment of an state controlled airport operator in a ground-handling company was consistent with the behavior of a rational private investor, or whether it constituted State aid. The analysis looked at the expected profitability of the investment and described the underlying economic logic of the investment based on the specific regulation and legal context of the industries involved, and showed that a rational private market investor would have found economic to invest in ground handling services.

Analysis of Payment Card Interchange Fee

Advised a four party credit and debit card scheme on interchange fees and on benefits of cards for consumers and merchants in selected European countries. The analysis was used to assess various levels of fees and the impact on consumer behavior.

Quantification of airport charges

Expert testimony in various litigations on behalf of airports on the methodology for the estimation of airport charges and their calculation.

Publications
Report
Infrastructure, Private Investments and Allocation of Risks: An Economic Analysis of Lessons Learned
May 2018

This whitepaper demonstrates that due to limited public funds available for infrastructure, private capital will play an important role in financing infrastructure projects over the coming years through Public-Private Partnership (PPP) contracts.

Presentation
A Seminar on the Cost of Capital in Regulated Industries: Time for a Fresh Perspective?
October 24, 2017
Presented at a Brattle seminar, Brussels, Belgium

On October 24, 2017, The Brattle Group hosted a half-day seminar in Brussels that explored whether there is a case for adjusting current methods of measuring the cost of capital in the face of a changing industrial and regulatory landscape.

Article
PV, The Incentives After the Constitutional Court Decision
February 01, 2017
Published in the January 27, 2017 issue of Quotidiano Energia

This article discusses the quantification of damages through arbitration by international investors of renewable energy projects, particularly solar photovoltaic (PV) plants.

Article
FV, gli incentivi dopo la Corte Costituzionale
January 27, 2017
Published in the January 27, 2017 issue of Quotidiano Energia
This article discusses the quantification of damages through arbitration by international investors of renewable energy projects, particularly solar photovoltaic (PV) plants.
Report
Il WACC di ADR. Aggiornamento dei parametri per il sottoperiodo tariffario 2017-2021
November 18, 2016
Prepared for the Airport of Rome Fiumicino (ADR)
Report prepared for the Airport of Rome Fiumicino (ADR) to estimate the WACC for the regulatory period 2017-2021, introducing advancements to the current methodology to take into account temporary effects of monetary policies implemented by the European Central Bank (ECB) on yields of sovereign government bonds used to estimate the risk free rate.
Report
Review of Approaches to Estimate a Reasonable Rate of Return for Investments in Telecoms Networks in Regulatory Proceedings and Options for EU Harmonization
July 18, 2016
Prepared for the European Commission’s Directorate-General for Communications Networks, Content and Technology (DG Connect)
A report offering guidelines for EU-based National Regulatory Authorities (NRAs) to use when calculating an allowed rate of return—typically the weighted average cost of capital (WACC)—for electronic telecommunications operators with significant market power (SMP).
Presentation
Infrastructure Needs, Water Regulation, Financing Options and Areas of Improvements: Issues as Basis for Discussion
December 05, 2014
Presented to the First Workshop on Water Regulation in Europe, Rome, Italy
Report
Infrastructure Needs, Water Regulation, Financing Options and Areas of Improvements
December 02, 2014
Francesco Lo Passo and Cosimo Fischietti
Prepared for the First Workshop on Water Regulation in Europe, Rome, Italy
Report
A Tale of Two Crises: The Betas of EU Networks
August 2013
Published by The Brattle Group, Inc.
Report
Calculating the Equity Risk Premium and the Risk-free Rate
November 26, 2012
Prepared for NMa
Article
Project Bond e Sviluppo delle Infrastrutture
October 2011
Published in AREL, Osservatorio Energia e Ambiente
Article
Prove di class action
May 2011
Published in Formiche, Edition 59
Article
Per finanziare le opera privati e patto di stabilità più flessibile
December 01, 2010
Francesco Lo Passo and Paolo Emilio Signorini
Published in Il Sole 24 Ore
Article
Energia, il mercato reale alla fine vince sul mercato virtuale
June 30, 2010
Published in Milano Finanza
Article
Servizi pubblici locali. Ma una legge non basta
December 2009
Published in Formiche, Edition 43
Article
Lo stoccaggio di gas naturale fra obblighi di sicurezza e organizzazione di mercato
November 11, 2009
Published in AREL, Osservatorio Energia e Ambiente
Article
Infrastrutture. Come evitare una nuova bolla
August 2009
Published in Formiche, Edition 40
Article
Flexibility Mechanisms in the Proposal of EU Directive on Renewables
February 2009
Published in GME Newsletter, Issue 13
Article
La distribuzione di gas: riassetto, tariffe e sostenibilità degli investimenti
2009
Published in AREL, Osservatorio Energia e Ambiente
Article
Il settore idrico
2008
Published in Confindustria, Scenari economici Centro Studi
News & Events
May 03, 2018
Private Capital to Play Important Role in Financing Infrastructure Projects According to Brattle Economists

A new whitepaper by Brattle economists demonstrates that due to limited public funds available for infrastructure, private capital will play an important role in financing infrastructure projects over the coming years through Public-Private Partnership (PPP) contracts.

October 24, 2017
Brattle Hosts European Seminar on the Cost of Capital in Regulated Industries

On October 24, 2017, The Brattle Group hosted a half-day seminar in Brussels that explored whether there is a case for adjusting current methods of measuring the cost of capital in the face of a changing industrial and regulatory landscape.

June 15, 2017
Francesco Lo Passo to Present on Railway Competition Policy at European University Institute Seminar

Brattle Principal Francesco Lo Passo will present at the European University Institute’s Executive Seminar: Competition in Passenger Railways in Europe, taking place June 15, 2017 in Florence, Italy.

February 01, 2017
Article by Brattle Principals on Damages Quantification for Solar PV Investors Published in Quotidiano Energia

Brattle Principals Dan Harris and Francesco Lo Passo have authored an article on the quantification of damages through arbitration by international investors of renewable energy projects, particularly solar photovoltaic (PV) plants.

July 18, 2016
Report by Brattle Economists Sets Uniform Guidelines for EU Telecommunications Regulators

A report released today by economists at The Brattle Group offers guidelines for EU-based National Regulatory Authorities (NRAs) to use when calculating an allowed rate of return—typically the weighted average cost of capital (WACC)—for electronic telecommunications operators with significant market power (SMP).

January 11, 2016
Role of Brattle Economists in the Privatization of Italian Railways Featured in Corriere della Sera

A recent article in the Italian newspaper Corriere della Sera features work by Brattle consultants in advising Ferrovie dello Stato Italiane (FS), the Italian State Railway, during their privatization process.

May 29, 2015
Brattle to Serve as Advisor for Italian State Railway in Railroad Privatization Process

Consultants at The Brattle Group have been retained by Ferrovie dello Stato Italiane (FS), the Italian State Railway, to serve as an advisor for the railway’s privatization process.

December 05, 2014
Brattle Co-Hosted Seminar on Water Regulation in Europe

Brattle recently co-presented the seminar, “First Workshop of Water Regulation in Europe,” which took place on 5 December 2014 in Rome, Italy.

June 16, 2014
Francesco Lo Passo to Participate in Airports Council International Europe General Assembly

Principal Francesco Lo Passo will serve as a panelist at the 24th Airports Council International (ACI) Europe General Assembly, Congress and Exhibition in Frankfurt, Germany.