A former North Sea oil and gas boss has been lined up to chair Great Britain’s energy regulator, Ofgem, in a move criticised as “putting the fox in charge of the hen house”.
The government said Mark McAllister, who founded two oil and gas companies, Fairfield Energy and Acorn Oil & Gas, had “vital expertise” that would help him in the role.
The Lib Dems said it was not a suitable choice given McAllister’s history in the oil and gas industry at a time when companies have been criticised for making huge profits on the back of high energy prices. At the same time, households have been struggling with record gas and electricity bills over the last year, with the government providing about £40bn in support for consumers and businesses.
Wera Hobhouse, the Lib Dem energy spokesperson, said the choice of McAllister as the government’s preferred candidate to chair Ofgem showed Sunak was “woefully out of touch”.
Ofgem has a duty to champion the interests of consumers who have faced soaring energy bills and its remit was also recently changed to have regard for net zero policies.
Labour has said it would end new oil and gas licences in the North Sea but Sunak has committed to new licences that he says are necessary for energy security.
McAllister is chair of the nuclear regulator, is involved in charitable causes, and no longer has interests in the oil and gas industry, according to his declared interests at the Office for Nuclear Regulation.
Before this job, he was director of a Chinese government-controlled shipping company involved in the offshore oil industry, and founded Fairfield Energy and Acorn Oil & Gas, as well as chairing an industry safety group for the North Sea after BP’s Deepwater Horizon spill. He previously held roles at British Gas and ConocoPhillips, according to his LinkedIn page.
Amanda Solloway, the minister for energy consumers and affordability, said McAllister would bring a “strong track record” in the industry to the role.
His appointment will be subject to scrutiny by parliament’s committee on energy security and net zero before it is confirmed.
“We will always ensure the energy market is working for families to protect them from sky high bills, including by working closely with our partners at Ofgem,” Solloway said.
“Mark McAllister has a strong track record of advising governments and regulators on competition and regulation. His expertise will be vital in the years ahead, as we make sure more households have access to cheaper, cleaner energy.”
Doug Parr, the policy director at Greenpeace UK, said: “As soon as the energy bill becomes law, Ofgem will have a mandate to pursue an energy system that delivers the carbon budgets under the Climate Change Act. That means a dramatic shift to renewables in electricity and the exclusion of fossil fuels.
“We hope that Mr McAllister can put behind him his past engagement with fossil fuels, and more recently nuclear power, and focus on the technologies needed to make this transition happen, which will also be good for consumers. If he is able to do that, we wish him well.”
