Davey names head of CFD Counterparty Company

Former Logica boss Martin Read will head up the company charged with administering the new energy subsidy regime, energy secretary Ed Davey announced on Thursday.

Read was CEO of Logica for 14 years to 2007 and has since served as a non-executive director on a number of boards, from British Airways to Asda. He has led government reviews on public sector IT and management information.

He will chair the CFD Counterparty Company, which is to manage long-term contracts for difference (CfDs) to low carbon electricity generators. The government-owned company will also handle payments to secure reliable capacity, mainly from gas power generators, through the capacity market.

Energy sector veteran Jim Keohane will take the role of senior independent director. Keohane has served as director of East Midlands Electricity and Eastern Group as part of some 30 years in the industry. He has been a non-executive member of Ofgem’s board since 2009 and sat on the board of the Civil Aviation Authority for eight years.

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 CfD regime.”

The company is due to start up on 1 August and allocate the first CfDs by the end of the year.

Read said: “I look forward to using my private sector experience to contribute directly to this essential reform of the electricity market.”