Fletcher took up the position at the water regulator in 2018 and previously spent 15 years at Ofgem. David Black, chief regulation officer at Ofwat, will assume the role of chief executive on an interim basis from 1 April.
At Ofwat, Fletcher was a champion of bringing social purpose into the heart of the water sector and protecting the environment. Her role at Octopus will focus on defining and campaigning for the lowest cost path to a green energy system.
She said: “It has been a great privilege to be Ofwat’s chief executive over the past three years. I am proud of the partnerships the team has built and the progress we’ve made towards unlocking the full value the water industry can provide for customers, society and the environment. These strong foundations mean it is the right time for me to move on, and I am excited to have an opportunity to help the energy sector’s transition to net zero. I know David and the experienced leadership team he has around him will thrive, taking Ofwat from strength to strength.”
Ofwat chair Jonson Cox said David Black will lead the organisation through the coming business year. He said: “We are very sorry to see Rachel go. She will leave with our thanks and deep appreciation for all she has achieved. Working with the leadership team Rachel helped to deliver a price review that secured huge investment and price reductions for customers, embedded a new strategy, and brought a greater focus on the customer and environmental challenges the sector must meet.”
Black joined Ofwat in 2012 and was previously the senior director and board member responsible for leading the PR19 price review before being appointed chief regulation officer in April 2020.
He said: “I am very pleased to be given the opportunity to lead Ofwat. There are profound challenges for the water sector – but some real opportunities too to show how water companies can improve customers’ lives, especially in these difficult times. I am looking forward to pressing ahead with delivering our strategy and guiding Ofwat and the sector to help deliver more for customers and the environment.”
On her new role at Octopus, Fletcher said: “I’m very excited to be joining Octopus Energy. Greg Jackson and his team are on a mission to bring about a fast, efficient and just transition to net zero. In the space of a few years they have shown what can be achieved with a clear purpose, leading edge technology and a focus on treating people fairly. I look forward to being part of the Octopus team, working towards these goals that are so vital for people and the planet.”
Octopus chief executive and founder Greg Jackson said he was impressed by Fletcher’s “no-nonsense style and a clear sense of purpose, championing consumers against sectoral interests.”
Cox, who has held a non-executive position at the regulator since 2012, is due to depart Ofwat in October after his tenure was extended in 2019 for another two years.