Following a selection process led by energy secretary Edward Davey, Gray has been named preferred candidate to take over from Lord John Mogg.
Gray has worked with Ofgem for the past five years and is currently managing director of networks. During this time, Ofgem states that he has “overseen the price controls for all the monopoly distribution and transmission companies, in both gas and electricity”.
Should the appointment be approved, Gray will succeed Lord John Mogg as Chair of the Gas and Electricity Markets Authority when the latter steps down in September 2013.
Future challenges for the energy sector
Edward Davey said: “I am delighted to put forward David Gray as our preferred candidate to take on the role of Chair of the Gas and Electricity Markets Authority.
“The energy sector will face a number of significant challenges in the coming years, with the need to secure major investment in new infrastructure while keeping bills down for consumers. Ofgem has a key role to play in meeting these challenges and ensuring the interests of consumers are protected.
“David has an excellent track record in economic regulation, including a previous role on Ofgem’s senior team, and also has extensive and invaluable experience of the energy sector. David will bring strong judgement and insight to the role and I look forward to working closely with him.
“I would like to thank outgoing Chair Lord Mogg for the strong leadership he has given to Ofgem throughout the ten years at the helm. The UK’s already strong reputation for stable, independent regulation was enhanced still further under Lord Mogg’s leadership”.
Current chair welcomes selection
Speaking on the appointment Ofgem’s Chairman, Lord Mogg said: “Ofgem welcomes the announcement by Edward Davey, the Secretary of State for Energy and Climate Change that he has chosen David Gray as the preferred candidate to become Chairman of Ofgem when I stand down after ten years on September 30th.
“This is an important time for Ofgem in discharging its duty to protect consumers. Ofgem’s reforms for a simpler, clearer and fairer energy market are near implementation and our RIIO price controls are already unlocking £30 billion of investment in our energy networks. All this change takes place against increasing pressure on consumers’ bills. I am therefore delighted that such a strong candidate as David Gray has been selected as the preferred candidate to protect consumers’ interests as Ofgem’s Chairman.”