Britain’s energy market regulator has named Jonathan Brearley, currently its head of systems and networks, as its next chief executive.
Mr Brearley will step up to the top job at Ofgem next February, ending a near six-year reign for Dermot Nolan, during which the regulator was criticised for its oversight of network operators and had a high-profile run-in with government over capping household bills.
His successor will take over at a time of sweeping change in the energy industry, as the UK works towards cutting its greenhouse gas emissions to “net zero” by 2050. The goal not only requires further decarbonisation of the electricity generation system but solutions to problems such as how to replace the gas boilers that heat the majority of British homes.
Ofgem’s chairman Martin Cave said Mr Nolan had left Ofgem “in a good position to tackle the challenges facing energy consumers during this time of transition”.
Mr Nolan had agreed to extend his contract by a year to oversee the introduction at the start of 2019 of an energy bill price cap for 11m households, in which he played a key role.
Ministers had initially wanted Ofgem to crack down on energy bills without any intervention from government, arguing the regulator already had the powers to tackle the problem of longstanding customers on standard tariffs facing steep price rises if they did shop around. But Mr Nolan insisted the government had to legislate for a cap as it was a “policy matter”.
Ofgem also came under attack for its regulation of energy network companies, which own the pipes and wires that supply gas and electricity to homes and businesses, during Mr Nolan’s tenure.
Consumer groups such as Citizens Advice argued such companies had been allowed to make “eye-watering” profits at the expense of consumers. Ofgem subsequently vowed to crack down on the level of returns investors in energy networks are permitted to make.
Mr Brearley became Ofgem’s executive director of systems and networks in April last year, effectively becoming joint number two to Mr Nolan along with Mary Starks, executive director for consumers and markets.
He has a long career in the energy industry, including the role of director for energy markets and networks at the former Department of Energy & Climate Change, which was merged into the Department for Business, Energy and Industrial Strategy in 2016.
“I am determined to deliver the best possible energy system for Britain’s consumers,” Mr Brearley said.