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UTILITY Week 22nd April 2016

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UTILITY WEEK | 22ND - 28TH APRIL 2016 | 11 Policy & Regulation Analysis A t last the hunt is over, and as Ofwat welcomes Aileen Armstrong, David Black and John Russell to their new roles, the team of seven senior directors who will lead the regulator through PR19 is complete. The thought behind the team overhaul is to prepare for the new challenges that will arise as the regulator implements its Trust in Water strategy, launched at the beginning of 2015 in an effort to create a more transparent water sector. "Since the beginning of 2015 the scale of the challenge we face in delivering our new strategy has been increasingly clear," says Ofwat chief executive Cathryn Ross. "It requires the programmes and projects – rather than becoming silos – to be more than the sum of their parts, and to be relentlessly aligned to our strategy." It was for this reason that she made the case for a new team structure to provide the "strong, competent, committed, clear lead- ership" the regulator needs as it transitions and adapts to a new way of working. The new, flat structure sees seven senior directors and a general counsel reporting directly to the chief executive. Ross says this will address shortages in the previous struc- ture relating to leadership capacity, strategic thinking, breadth and depth of understand- ing of economic regulation, management of risks and opportunities, and stakeholder engagement. Under the new structure, the posts of chief regulation officer, held by Sonia Brown, and senior director of finance and networks, held by Keith Mason, are gone, and four new roles are created: senior director of strategy and planning; senior director, Water 2020; senior director finance and governance; and senior director Thames Tideway. Mason applied for one of the new jobs and took the Thames Tideway role, but Brown decided to leave and has since been appointed a director at Visa Europe. Ross says: "Ofwat has an ambitious vision for the future. We are working to build trust and confidence in water and to make sure customers' interests are front and centre in the sector's thinking. We have set a new strategy to help us achieve our goal, but that is just the start. "Aileen, David and John have impressive credentials and they will strengthen our executive's strategic leadership. Crucially, they share our culture and values, and have a clear appetite to drive us forward. I am looking forward to them joining the team." Ross says that now, as these new appoint- ments are announced, the regulator has the leadership team, the budget and the policy proposals in place to "drive forward" over the coming years. Ofwat's top team Ofwat has appointed the final three senior directors after chief executive Cathryn Ross's shake-up of the top team. Lois Vallely. Strategy and Planning – John Russell Russell currently works for Shell, in the company's group strategy and business envi- ronment teams, where he is global manager for city development in Indonesia, India and the Philippines. Prior to working at Shell, he had a long civil service career, culminating in being chief operating officer for Infrastructure UK at the Treasury. Water 2020 – David Black Black joined Ofwat in 2012 and before his appointment as senior director, Water 2020, he was director of economics. Before that he led the finance and modelling workstreams for PR14. He has also worked in economic consulting, advising on economic regulation and competition in communications and utilities. Finance and Governance – Aileen Armstrong Armstrong has been head of the competition, markets and regulation team at the Treasury since 2013, working across government to improve public and private markets through greater competition and effective regulation. She has 20 years' experience in the public sector, including stints at the Competition Commission, the Office of fair Trading (now the Competition and Markets Authority), and the European Commission. Customers and Casework – Richard Khaldi Khaldi joined Ofwat in 2013, aer six years at Scottish water regulator Wics, where he was head of competition, overseeing the regulation and management of the Scottish non-household retail market. Thames Tideway – Keith Mason Mason is currently senior director of finance and networks at Ofwat and is an executive director on the Ofwat board. He has been with Ofwat for more than 20 years and has experi- enced five periodic reviews. He is a chartered accountant and corporate treasurer. He was previously a director at KPMG. Business Improvement – Bev Messinger Messinger has a public service career span- ning more than 30 years. She joined Ofwat in 2013 aer having held significant leadership positions for four local authorities, most recently Coventry City Council where she was head of HR and interim chief executive. Corporate Communication – Claire Forbes Forbes has more than 20 years' experience in corporate communications. Prior to joining Ofwat in 2013 she was director of commu- nications at the Parliamentary and Health Service Ombudsman, and has had a similar role at the Advertising Standards Authority. The senior team in full NEW STRUCTURE Senior direc- tor, strategy and planning Senior direc- tor, Finance and govern- ance Senior direc- tor, Thames Tideway Senior direc- tor, Water 2020 PR19 senior leadership team Senior direc- tor, customers and casework Senior direc- tor, business improvement Senior direc- tor, corporate communica- tions General counsel Chief executive

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