Utility Week

8 | 11TH - 17TH OCTOBER 2019 | UTILITY WEEK Policy & Regulation Analysis F or the past decade mention of Brearley has inevitably been followed by the words "architect of electricity market reform(EMR)". It is an achievement that casts a long shadow and the consequences, intended and otherwise, of its implementation have continued to shape Brearley's career and will certainly continue to do so as he guides Ofgem into a new era. While EMR may be his notable achieve- ment, Cambridge-educated Brearley's CV makes for interesting reading. He began his career as part of Tony Blair's strategy unit, as an adviser and then deputy director. He then moved into a role advising the government on its climate change policy before tak- ing up the role of director of strategy at what was then the Department of Energy and ClimateChange (Decc). In September 2009, he was appointed director of energy mar- kets and networks at Decc, under the secretary of state at the time, Ed Miliband. It was in this role that he designed EMR, a fundamental shake-up of the policy framework underpinning the energy market, aimed at addressing the triple challenge of securing supply, decarbonising the power sector and keeping consumer bills aŒ ordable. It led to the Energy Act 2013, which introduced the capacity market and the contracts for diŒ erence (CfD) scheme. As Brear- ley now prepares to take the helm at Ofgem, both of these key mechanisms of the reforms stand at a cru- cial point. The capacity market is currently suspended while the European Commission investigates whether it breaches state aid rules. That investigation has been going on for six months now but the Commission is being tight-lipped about when it will deliver its verdict. Meanwhile, the CfD auction pro- cess is also facing its own legal challenge, over claims that is it is prejudiced against onshore wind. Despite being the driving force of EMR, Brearley made a surprise exit from govern- ment in September 2013 as the legislation was still going through parliament, to set up his own consultancy. For the next three years he advised investors on risks and oppor- tunities in energy markets both in the UK and overseas, as well as supporting foreign governments on energy and climate change policies. In 2016, Brearley joined Ofgem to lead on the regulator's oversight of the networks. Since then he has been heavily involved in the design of network price controls, the tender processes for oŒ shore wind farm con- nections and the development of power con- nections from the UK across Europe. Most recently he has been involved with the inves- tigation into August's blackouts and what lessons need to be learnt. Following the announcement about his promotion, questions inevitably will be asked about the length of the handover pro- cess. Dermot Nolan is due to remain in posi- tion until February but that timescale would appear to have been laid out in the anticipa- tion of an external candidate either having to give notice or requiring a detailed handover. With Brearley's in-depth knowledge of the sector and the organisation, his o™ cial coro- nation could come sooner than expected. Who is Jonathan Brearley? Ofgem's new chief has a long track record in the energy industry, both at Ofgem and as a government adviser. He'll need all that experience as he takes the hot seat. James Wallin charts his progress to the top. "Since starting work in energy and climate change over a decade ago, I have a deep passion for this sector. I am determined to deliver the best pos- sible energy system for Britain's consumers. "Ofgem has a key role to play in protecting consumers and sup- porting the transition to a net zero economy by 2050, which will see the most dramatic change in energy for generations. "For Ofgem to do so eff ectively in a rapidly changing market, it is imperative that we improve our ability to act quickly and robustly to protect con- sumers. "Equally, as a father in a mixed race family, I know that we and the industry need a greater diversity of talents and per- spectives if we are going to be able to deliver for all the diff erent consumer groups we work for." Jonathan Brearley, chief executive, Ofgem

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