Defra creates new role to lay foundations for the new regulator

(by Karma Loveday)

Defra has created the role of senior advisor to the secretary of state on water reform transition – to “lay the foundations for the new regulator then hand over responsibilities to the chair-designate”.

In the terms of reference (ToR) for the position, the department said the advisor will provide strategic leadership, advice, guidance and support on the design of the new regulator, and provide expert knowledge to support the transition.

The appointee is accountable directly to ministers and will not be able to instruct civil servants. The post runs for 12 months, with the option to extend to a further 12 months. Defra said it plans to appoint a chair-designate following the introduction of the Water Reform Bill.

Specifically, the ToR said the senior advisor will: 

• Provide advice and support to ministers and senior officials on the development of the Transition Plan and, throughout the transition period, ensure the new regulator is in the best position to be led by the chair-designate and board (once appointed).

• Coordinate and convene engagement across regulators and industry, to plan key matters including:

  • PR29, to take account of the Government’s plans for future reforms, ahead of primary legislative changes.

  • Risk and risk mitigation strategies – the transitional supervision approach that will be undertaken by current regulators.

  • Targeted work to identify opportunities to drive down costs of major infrastructure “and other burdens that put pressure on consumer bills, whilst protecting environmental and public health standards”. 

• Provide guidance and advice on regulatory structures and the shape of future legislation.

• Assess existing methods and mechanisms that support innovation in the sector.

• Potentially, contribute to the shape and nature of the new regulator’s board.

According to a report, Dame Julia Black has been appointed to the role – professor of law and regulation at Oxford University, with external roles including as a member of the prime minister’s Council on Science and Technology, a non-executive director of the Financial Conduct Authority, an external member of the Bank of England’s Financial Markets Infrastructure Committee, and a member of the board of the Courtauld Institute of Art.