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UtILIty WEEK | 2nd - 8th May 2014 | 9 Interview W ill the big six energy companies be split up? It is one of the biggest questions facing the sec- tor, following Ofgem's decision to order a com- petition investigation. Everyone has an opinion. Yet it is those with the greatest influence who are bound to say the least. Martin Cave is necessarily circumspect. As a deputy panel chair at the Competition and Markets Authority (CMA), he may well be called on to lead the impending energy market investigation. Whoever gets that assign- ment must go in with an open mind. When Utility Week meets Cave at the CMA's London offices, he certainly gives the impression of a man driven by intellectual curiosity rather than any predetermined agenda. He steers clear of the macho rhetoric deployed by politicians, leaving his record to speak for itself. He is fresh from setting a tough price control for Northern Ireland Electricity (NIE), which has triggered a regulatory squeeze on other network businesses. Meanwhile, his seminal 2009 report on water competition is slowly but surely driving the biggest culture shi in that sector since privatisation. In a career that has spanned academia, regulatory economics and competition law, Cave rates the his role at the Competition Commission (rebranded the CMA on 1 April in a merger with the Office of Fair Trading) as "probably the best job I have had". It may not take him to such exotic locations as does his interest in mobile broadband in developing countries (most recently Mex- ico), but he appreciates the "finely balanced" nature of competition casework. It puts him in a prime position to take on the upcom- ing energy market investigation, which Ofgem's assess- ment suggests will be finely balanced indeed. The regulator did not find damning evidence of competi- tion problems in the market, but presented the move as a chance to "clear the air" of mistrust towards energy companies. Is that what a competition referral is for? "I would not have thought that was its primary function," Cave says with a wry smile. But he adds: "There seems to be a fair consensus that there is an opportunity, via a market reference, to really get to the bottom of what is going on." Cave scrupulously notes that Ofgem has not yet made a referral to the CMA. The regulator is consulting on the plans until 23 May and could, in theory, decide not to go ahead. Ofgem has made its intentions pretty clear, how- ever, and a U-turn would trigger the eating of hats up and down the country. If and when the referral does come, Cave is one of six candidates to lead the investigation. CMA panel chair Roger Witcomb assigns one of five deputy panel chairs to lead each inquiry, or he may decide to take it on him- self. In a big case, he may appoint more than one deputy panel chair to the inquiry, as well as a number of panel members. There are no hard and fast selection criteria, but Witcomb will take into account areas of expertise, availability and some stringent conflict of interest rules. The CMA panel will have 18 months (with an option to extend for another six months) to identify any "adverse effects on competition" and order remedies. It will have "considerable resources" at its disposal, says Cave. "It