The economist behind the upcoming energy price cap has been selected by the government to chair Ofgem and take on the ‘seismic change’ underway in the UK energy sector.
Professor Martin Cave, former deputy chair of the Competition Commission and deputy panel chair of the Competition and Markets Authority (CMA), has been selected as the preferred candidate to take over the role in October.
Specialising in competition law and network industries including energy, Cave called for a temporary price cap as part of the CMA’s 2016 review, claiming its reforms did not go far enough to protect consumers from energy price rises.
According to Greg Clark, the secretary of state for business, energy and industrial strategy, the “impressive track record” of the former economic adviser to Ofcom in utility markets, and more specifically his work to protect consumers, made him the top candidate.
“We are determined to see active regulators who put consumers interest at the heart of their work, the appointment of Professor Cave to lead Ofgem will ensure that,” he said.
“I have no doubt he will use his wealth of expertise to protect consumers and help create an energy market that works for everyone.”
Commenting on his selection, Cave said: “Seismic change is afoot in this sector and I will work to ensure that the regulator continues to protect consumers while working with government and those across the sector to build an energy system fit for the future.”
Subject to a pre-appointment hearing by the Business, Energy and Industrial Strategy Select Committee on 3 July, Cave will take over from current Ofgem chair David Gray, who will end his term on 1 October.
Clark also announced the appointment of Lynne Embleton and Ann Robinson as the new non-executive directors of the regulator.