Ofgem’s new chief executive Jonathan Brearley is planning a restructure of the regulator, Utility Week understands.
Brearley succeeded Dermot Nolan last month and is understood to be looking at the best structure to deliver his plans.
An Ofgem spokesperson told Utility Week: “We are currently reviewing the organisational structure of Ofgem to ensure that we are set up to protect consumers as effectively as possible.”
Details of the reshuffle have not been revealed but it is thought Brearley will aim for a new structure designed to deliver Ofgem’s decarbonisation plan.
Sources close to Ofgem suggested the restructure will be broad ranging and focussed on creating a much flatter organisation. They added it will significantly impact the briefs of a range of Ofgem directors and take a new look at how various different regulatory workstreams are “packaged”.
One source says this may involve a wider scope for the office of chief economist, Joe Perkins. There is speculation this could include a wider remit covering strategy and decarbonisation.
Brearley’s former role of executive director for systems and networks could be one of those overhauled. Cathryn Scott has been filling the position on an interim basis since November.
Among those tipped towards more responsibility following the reshuffle include executive director of consumers and markets Mary Starks.
The regulator is also set to unveil a new addition to its board. Speaking at Utility Week’s Investor Summit today (5 March), chairman Martin Cave said an expert on data would join the board “in the next few days”.
On Brearley’s first day in the role, Ofgem unveiled its decarbonisation action plan – nine actions it intends to take over the next year and a half in order to support decarbonisation. These include the development of a regulatory strategy to support the electric vehicle rollout and the launch of a net zero innovation fund.
The regulator is also in the midst of the RIIO-2 price controls, with electricity transmission and gas distribution companies having already submitted their business plans for the next five years. Electricity distribution firms must hand theirs in next year.
Speaking at today’s conference, Cave said Ofgem was taking learnings from the PR19 process in water. Asked if the regulator was already bracing itself for appeals to the Competition & Markets Authority, Cave said he was relaxed about the process and that the CMA was a useful resolution option.