Day: June 25, 2018

• Professor Cave recommended price cap in landmark independent report into competition in the energy market
• the government has also confirmed appointment of 2 non-executive directors on the Ofgem board with track record of championing consumer protection

Professor Martin Cave, former Deputy Chair of the Competition Commission and Deputy Panel Chair of the Competition and Markets Authority, is the preferred candidate to be the new Chair of the energy regulator, Ofgem.

This comes just days after Andrew Tyrie, the former chair of the Treasury select committee, took up his role as chair of the Competition and Markets Authority as the government moves to ensure robust regulators place consumers at their heart of their work.

In addition to his distinguished regulatory career, Professor Cave is an eminent economist who has undertaken several roles in government including as economic adviser to Ofcom between 2003 and 2006. He has led a number of high profile reviews within government and has a deep understanding of the energy sector. As part of the CMA’s 2016 review of the energy market Professor Cave wrote the dissenting opinion, saying that the report’s proposed reforms did not go far enough and that a temporary price cap was needed to protect consumers from unfair energy price rises.

Business and Energy Secretary Greg Clark said:

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.

Professor Cave has an impressive track record and is well respected for his work regulating the utility markets. I have no doubt he will use his wealth of expertise to protect consumers and help create an energy market that works for everyone.

Professor Cave said:

It is a real honour to be recommended for one of the most important roles in the energy sector. The work that Ofgem has done with government over the last 12 months has helped consumers get a better deal for their energy. 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.

Ofgem’s role is to protect the interests of existing and future electricity and gas consumers. It does this in a number of ways including promoting value for money; promoting security of supply and sustainability for domestic and industrial users; and the regulation and the delivery of government schemes.

The post of Ofgem Chair is subject to a pre-appointment hearing by the Business, Energy and Industrial Strategy Select Committee. This will take place on 3 July 2018.

The current Ofgem Chair, David Gray, will end his term on 1 October 2018.

Non-Executive Directors

Lynne Embleton and Ann Robinson have also been confirmed as the new Non-Executive Directors of the Office of Gas and Electricity Markets (Ofgem).

Greg Clark continued:

I am also delighted to appoint Lynne Embleton and Ann Robinson to the Ofgem board – both have a strong reputation for improving the service consumers receive and effectively advocating for rights on their behalf.

Lynne Embleton is currently the CEO of IAG Cargo where she is leading transformation based on infrastructure investment, customer focus, culture and digital technology. She has previously served on the board of British Airways as the Managing Director at Gatwick and as Strategy Director.

Ann Robinson is a noted consumer champion with significant experience in energy and consumer policy. Ann worked in the Civil Service before becoming Chief Executive of Scope. She then spent a period as Director General of the British Retail Consortium and she is the former Executive Chair of Energy Watch. Over the last few years Ann has been a consultant advising a number of organisations on consumer issues including uSwitch. The Gas Safe Register and charities such as Scope.

Notes to editors

The Chair of Ofgem has responsibility for:

• addressing the significant consumer detriment in the retail market
• responding to rapid technological change in the electricity market, allowing the emergence of smart, decentralised technologies, implementing plans for a more independent electricity transmission system operator and more active system management at a distribution level
• improving value for money from the next round of price controls for gas and electricity networks under the RIIO (Revenue=Incentives+ Innovation+Outputs) framework, due by 2022, and reforming charging systems so that they provide the right investment signals while minimising consumer costs
• supporting continued security of supply and efficiency
• operational performance of eServe, which delivers a number of government programmes

Martin Cave

Martin Cave has worked as Deputy Chair of the Competition Commission and Deputy Panel Chair of the Competition and Markets Authority from January 2012 to January 2018.

He has also conducted a number of independent reviews for the UK government. These include:

• appointed by the Chancellor of the Exchequer and the Secretary of State for Trade and Industry to conduct an independent review of radio spectrum Management 2001 to 2002
• appointed by the Chancellor of Exchequer to conduct an independent audit of major spectrum holdings, 2004 to 2005
• appointed by Secretary of State for Communities and Local Government to undertake an independent review of the regulation of social housing, 2006 to 2007
• appointed by the Chancellor of the Exchequer and the Secretary of State for Defra to conduct a review of competition and innovation in the water sector, 2009 to 2010
• appointed by the Secretary of State for Transport to chair an expert panel on airport regulation, 2008 to 2009

He is also an eminent economist who has undertaken a number of roles in government including as economic adviser to Ofcom between 2003 and 2006.

A new law requiring horse owners to microchip their animals has been introduced today to prevent abuse and improve welfare.

Earlier this year RSCPA released figures that showed that they rescued around 1,000 horses in 2017, to highlight the issue of horses being fly-tipped or dumped, often in horrific conditions.

From October 2020 it will be mandatory for all owners to microchip their horses, ponies and donkeys. The new Central Equine Database will then allow local authorities and police to track down the owners of dumped horses and make sure they are punished and the animals are given the care they deserve. It will also mean lost or stolen horses will be reunited with their owners more easily.

Lord Gardiner, Animal Welfare Minister, said:

The government shares the British public’s high regard for animal welfare and it is completely unacceptable that hundreds of horses and ponies are left abandoned every year by irresponsible owners.

That is why we have today laid new regulations in Parliament requiring horses to be microchipped. This will bolster the ability of local authorities and police to identify abandoned animals, ensuring these beautiful creatures receive the care they deserve and that those who mistreat them will face the consequences.

The Central Equine Database logs all domesticated horses, including those required to be microchipped by October 2020. This will offer a practical solution to the pressing animal welfare issues which arise when horses are abandoned, making it easier to rehome the animals more quickly and effectively and has been welcomed by charities such as the RSPCA.

We are working closely with vets and the British Horse Council to highlight the change in regulations, explaining that horse owners have until October 2020 to make sure that all horses are microchipped. This extra time will allow horse owners to combine microchipping with a routine visit to, or from, their vet with the procedure costing around £25-30.

RSPCA Assistant Director of External Affairs, David Bowles said:

We are delighted regulations to ensure horses of all ages should be microchipped are set to become a reality.

The RSPCA rescued almost 1,000 horses last year (2017), and a huge majority were not microchipped making it virtually impossible to trace the owners. Heartbreakingly our inspectors are frequently faced with horses which have been dumped whilst very sick, dying, or sometimes even dead.

We believe this extension of the current rules on compulsory microchipping will go some way to help find those irresponsible owners that abandon their horses as well as helping owners be reunited with their animals that have been stolen.

If horse owners do not microchip their horses by October 2020 they could face sanctions from their local authority including a compliance notice and, as a last resort, a fine of up to £200.

Jeanette Allen, Chair of The British Horse Council, said:

This new legislation has the full support of the British Horse Council. We have been working closely with Defra and this achieves the important step of requiring all equine animals to have a microchip.

This is a huge advance for the UK’s horses, ponies and donkeys. It will not only enable irresponsible owners to be held properly accountable for the treatment of their animal, it will also aid in reuniting owners with lost or stolen horses and significantly supports the UK’s efforts to protect our equines from disease outbreaks.

The regulations for this database were laid in Parliament today and, subject to parliamentary approval, will come into force on 1 October 2018. They are similar in nature to the legislation which requires all dogs to be microchipped.