Chair of the CFD Counterparty Company appointed
17 Apr 2014 04:47 PM
Dr Martin Read CBE appointed as Chair of
the CFD Counterparty Company
Dr
Martin Read CBE has been appointed as Chair of the CFD Counterparty Company by
Energy and Climate Change Secretary of State, Edward Davey.
The
CFD Counterparty Company is a new Government-owned company being established as
part of Government’s Electricity Market Reform.
Dr
Martin Read will be supported in this three year role by Jim Keohane, as the
Senior Independent Director (SID). The two appointees will also take on the
Chair and SID positions of the Electricity Settlements Company when it is
established.
Electricity Market Reform is delivering ambitious
reforms to bring forward unprecedented investment in electricity generation and
encourage a diverse energy mix. The CFD Counterparty Company will be a key
institution, managing long-term Contracts for Difference (CfDs) with
electricity generators to incentivise investment in low-carbon generation. The
company is expected to be operational from 1 August 2014 and it is expected
that the first CfDs under the new regime will be allocated by the end of the
year.
The
Electricity Settlements Company will facilitate payments under Capacity Market
agreements. The Capacity Market is designed to deliver sufficient investment in
the overall level of reliable capacity needed to ensure secure electricity
supplies. The first Capacity Market auction is expected to run by the end of
2014, for delivery of the necessary capacity by the winter of
2018/19.
The
combination of the Chair and SID roles across the two companies reflects the
fact that the companies will share a number of features and services, and
should minimise their cost to industry.
Secretary of State Edward Davey said:
The
new Contracts for Difference Counterparty Company is crucial to make sure we
have the right conditions to attract funding for low-carbon generation, helping
to reduce our emissions and give the best deal to bill-payers. It’s never
been more important to drive investment in home grown energy to increase our
energy security and reduce our reliance on foreign imports.
Martin Read and Jim Keohane will provide expert
leadership driving through the successful implementation of the Contracts for
Difference (CfD) regime. Over the next year we can expect to see the CFD
Counterparty Company working with industry to ensure suppliers’
settlements are ready as well as signing and managing the first
CfDs.
Dr
Martin Read said:
I
am pleased to take on this important role. As Chair of the CFD Counterparty
Company, I look forward to using my private sector experience to contribute
directly to this essential reform of the electricity market.
The
CFD Counterparty Company is key to successfully establishing the CfD regime and
delivering a secure, low-carbon electricity system.
Dr
Martin Read has a strong track record in non-executive roles in major private
sector companies and a range of other organisations. From his fourteen years as
Chief Executive Officer of Logica (1993 to 2007), he also has extensive
experience of managing large contracts and settlement systems, which will be
invaluable in his new role.
Dr
Martin Read is currently a non-executive director at Lloyds of London and the
UK Government Efficiency and Reform Board, Chair of the Remuneration
Consultants Group and Chair designate of Laird plc. He has previously served as
a non-executive director on the Boards of Invensys plc, Aegis Group, British
Airways, Siemens Holdings, Boots Group and Asda Group. He led UK Government
reviews on back office operations and IT across the public sector (2009) and
management information (2012).
Jim
Keohane is also an experienced non-executive. He served an eight-year term as a
non-executive director of the Civil Aviation Authority and was its Deputy
Chairman from 2007 to 2008.
He
has also been a non-executive member of the Gas and Electricity Market
Authority since 2009. Jim Keohane has 30 years’ experience in the energy
industry, including serving as a director of East Midlands Electricity and,
later, Eastern Group. From his experience in the electricity sector he will
bring an excellent knowledge of the industry to the Senior Independent Director
role.
Further information