New CMA chief Tyrie to focus on energy

Energy has been named as one of the areas that the incoming chair of the government’s competition watchdog has been urged by MPs to bone up on in his new role.

The Business, Energy and Industrial Strategy (BEIS) select committee has endorsed ex-MP Andrew Tyrie’s appointment as chair of the Competition and Markets Authority (CMA) today.

Tyrie, who was chair of the Treasury select committee before stepping down as an MP at last year’s general election, was put forward to head the CMA by BEIS secretary of state Greg Clark earlier this month.

Following a pre-appointment hearing with Tyrie on Tuesday, the select committee concluded that Tyrie has the “professional competence and personal independence” to fulfil the role of CMA chairman.

While the committee says Tyrie is a “recognised expert” in the regulation of financial services, it recommends that he should engage “as a priority” with businesses and consumer groups in markets where he has less experience, such as big data and energy.

Welcoming Tyrie’s stated willingness at last week’s hearing for the CMA to fully use its powers and challenge the effectiveness of the legislative framework, the report urges the authority’s new chair to work closely with sector regulators to ensure that they adopt a “sufficiently proactive” approach to fulfilling their responsibilities.

The committee says the standard of regulation and performance of regulators in the UK is “inconsistent and, at times, weak”.

Rachel Reeves, chair of the BEIS committee, said: “Andrew’s record in parliament shows he has the competence and independence of mind needed to be an effective chair of the Competition and Markets Authority. I wish him every success in this role and in ensuring that the CMA is a champion for consumers and delivers competition which works for all.

“The CMA faces big challenges in the coming years, not least in areas such as big data and on Brexit, and we look forward to engaging with the CMA in the future on these and other competition issues.”

While serving on the backbenches, Tyrie took a sceptical stance on action to tackle global warming and was one of only five MPs to vote against the passage of the 2008 Climate Change Act.