Jersey Competition Regulatory Authority: Appointment of Non-Executive Director

STATES OF JERSEY

JERSEY COMPETITION REGULATORY AUTHORITY: APPOINTMENT OF NON-EXECUTIVE DIRECTOR

Presented to the States on 30th May 2013 by the Minister for Economic Development

STATES GREFFE

2013   Price code: B  R.52

REPORT

Under Article 3(3) of the Competition Regulatory Authority (Jersey) Law 2001, the Minister for Economic Development is required to notify the States of appointments of members of the Jersey Competition Regulatory Authority (JCRA).

A vacancy has arisen on the board of the JCRA due to the expiry of Richard Povey's term of office on 8th May 2013. He has served on the boards of the JCRA since 2005 and the Guernsey Competition and Regulatory Authority (GCRA) since 2012: as the appointments run concurrently, and Mr. Povey has served 8 years with the JCRA (with 9  being  the  accepted  maximum  to  ensure  independence  per  corporate governance best practice), he did not seek re-appointment.

In the light of Mr. Povey's departure, and taking account of the likely workload of the JCRA and the Guernsey Competition and Regulatory Authority (GCRA) (together acting as the Channel Islands Competition and Regulatory Authorities, or CICRA) in the  short-  to  medium-term,  the  Board  reviewed  its  own  composition,  skills  and experience. It identified, in particular, the need to reinforce the level of telecoms and electricity regulatory expertise at a non-executive level.

A recruitment Panel was selected, comprising Mark Boleat (Chairman of the JCRA and  GCRA),  Philip  Marsden  (Non-Executive  Member  of the JCRA  and  GCRA), Louise Read (Board Secretary and Director of Finance and Operations of the JCRA and GCRA) and Julian Rogers (Member of the Jersey Appointments Commission). The process itself was resourced by CICRA; external recruitment consultants were not engaged.

The recruitment process started in March with advertisements placed locally in the Jersey Evening Post and the Guernsey Press and in the Sunday Times. By the closing date, 38 applications had been received, which were then subject to a short-listing process  undertaken  by  the  recruitment  Panel.  The  short-listing  process  involved comparing  the  skills  and  experience  demonstrated  by  the  candidates  in  their application letters and CVs to the criteria set out in the candidate brief for the role. The top 5 candidates were invited for interview.

The interview comprised a short presentation given by the candidate, followed by a competency-based  interview  to  more  closely  assess  the  candidate's  skills  and experience against those required for the role. All candidates were assessed against the same competencies and scored on the same basis.

As the result of the interview process, 4 of the 5 candidates were deemed potentially suitable;  however,  one  candidate  scored  significantly  higher  than  the  others.  The recruitment Panel discussed the scores and each of the candidates at length and agreed to  recommend  the  highest-scoring  candidate  to  the  Minister  for  Economic Development for appointment to the JCRA and to the Commerce and Employment Department for appointment to the GCRA.

The recommended candidate is Regina Finn. A copy of her CV, for information, is attached as the Appendix to this report. Ms Finn has extensive experience of utility regulation in  Guernsey,  having  previously  served  as  the first  Director-General  of Utility Regulation in Guernsey from November 2000 to January 2005. Ms Finn has board-level  experience  within  a  number  of  other  regulators,  including  OFWAT,

COMREG (the Irish telecoms and postal regulator), and the Commission for Energy Regulation in Ireland.

The recruitment Panel noted Ms Finn's extensive expertise in utilities regulation, and in-depth knowledge of both the telecoms and electricity sectors. In the Panel's view, she would be an excellent addition to the membership of the JCRA.

The commencement date of the contract will be 1st June 2013, which is the same date as the appointment of the candidate to the board of the GCRA. The term will be 5 years, which is the maximum specified term as set out in the 2001 Law and provides for continuity within the JCRA board, avoiding several members' terms ending around the same time.

APPENDIX

CURRICULUM VITAE Regina Finn

An experienced Board director with an excellent track record of leadership, change management,  strategy  development  and  strategic  decision-making;  extensive experience in senior stakeholder management in Government, regulators, media and industry;  regulatory,  competition  and  consumer  experience  in  a  range  of  sectors including telecommunications, post, energy and water.

An experienced chief executive with extensive involvement in decision-making in complex  commercial  environments  as  well  as  building  and  leading  senior  teams, developing and implementing strategy and organisational transformation and culture change.

 _____________________________________________________________________

November  2008 –  present:  Non-Executive  Director,  Mutual  Energy  Holdings Ltd., BELFAST

I am a Non-Executive Director of the Board of this mutualized energy company, as well as being Chair of the Remuneration Committee and a member of the Audit Committee.

As a Board member I have supported the Chairman and the Board in transforming this small business from a start-up financing vehicle to a successful asset owner, operator and financer with a strategic influence on the Irish energy sector that disproportionate to its size. Much of this influence is derived from a greatly enhanced and improved reputation.  I  provide  particular  support  in  stakeholder  engagement  as  well  as experience and knowledge of energy sectors in Ireland, UK and Europe.

I share the responsibility for holding the Executive to account and ensuring good governance, which is particularly important in the absence of a shareholder function.

Skills and experience relevant to CICRA

Depth of understanding of Board development and operation, from Non-Executive perspective,  strengthening  existing  experience  as  Executive  Board  member  of OFWAT;

In-depth knowledge of (and involvement in) developing company strategy, ability to challenge, support and stretch Executive colleagues as a member of the Board team;

Strong senior stakeholder influencing skills in a complex environment;

Direct experience of and insight into the needs of business operating in a heavily regulated environment.

October 2006 – November 2013: Chief Executive, OFWAT, UK

OFWAT is the economic regulator for the water and waste water sector in England and Wales, as well as being a concurrent competition body for the sector and having powers under consumer legislation.

I joined OFWAT in 2006 as its first Chief Executive and as a Board member, led the development of its strategy which focuses on the delivery of sustainable long-term water sector in the interests of customers. A significant achievement has been to secure the necessary commitment of Government to new legislation to enable reform of the water and wastewater sectors to deliver on this strategy. The legislation has now been published.

I led the delivery of a price control in 2009 for this £10 billion turnover industry that kept real bills to customers flat for 5 years while at the same time ensuring £22 billion investment. I successfully defended an appeal against one of the 22 determinations, clearly demonstrating how OFWAT's decisions were in the public interest.

At the same time I ensured OFWAT's core enforcement work (under regulatory, competition  and  consumer  legislation)  was  targeted  and  successful,  levying £75 million in fines on water companies and securing over £500 million in benefits returned to customers. I have driven a significant increase in the use of OFWAT's powers under the competition act, including initiating joint working with the OFT. A number  of  strategic  decisions  have  been  challenged  in  court  and  none  were overturned. I act as decision-maker for all complex cases.

My  work  involves  significant  stakeholder  management  including  Government, industry and the media, where it is my role to communicate complex policy and regulatory  messages  simply,  clearly  and  effectively.  I  am  a  Board  member  and Accounting Officer, so I am experienced in appearing before Select Committees and engaging  directly  with  Ministers  and  other  politicians.  I  am  also  thoroughly experienced in the highest standards of governance and accountability.

Skills and experience relevant to CICRA

Demonstrable leadership skills, as Chief Executive and Board member, including in strategic development, complex negotiations and decision-making;

In-depth  knowledge  of  regulatory,  competition  and  consumer  frameworks  and legislation in the UK;

Intellectual capability to successfully act as decision-maker on all major cases under sectoral, competition and consumer legislation;

Extensive knowledge of and experience in applying the highest standards of corporate governance;

Sophisticated  stakeholder management  skills  and  relationship building  experience, including strong communication skills.

February 2005 – October 2006: Commissioner for Energy Regulation, IRELAND

As one of 3 Commissioners for Energy Regulation, I led the development of an all- island electricity market (the Single Electricity Market or SEM) to deliver the best possible outcomes for consumers. This involved working with the economic regulator in Northern Ireland and both the Northern Irish and Irish governments, to set up a single market for the competitive purchase, transportation and sale of electricity in the Island of Ireland.

Requiring significant political and negotiation skills as well as project management and  economic  regulatory  and  competition  skills,  the  project  resulted  in  the  first successful cross-border single market in Europe.

I also led the development and publication of the Commission's first Strategic Plan and contributed to the rest of the Commission's work as one of the key decision- makers under its powers to regulate both the electricity and gas sectors in Ireland.

Skills and experience relevant to CICRA

Deep  understanding  of  the  energy  industry  and  energy  regulatory  frameworks  in Europe, the UK and Ireland; experience in market design in a small economy;

Senior stakeholder management in an intensely political and complex environment; Experience in managing complex programs of work spanning 2 jurisdictions.

November 2000 – January 2005: Director General of Utility Regulation for the States of Guernsey, CHANNEL ISLANDS

I set up the first economic regulatory regime in the Channel Islands, starting with legislation design through to organisational set-up, and then ran the regulatory body for its first 3 start-up years. This included recruiting appropriately skilled staff and managing  much  of  our  delivery  through  effective  outsourcing.  The  organization regulated the telecommunications, electricity and postal sectors in Guernsey.

During this time, I assisted Government in privatising the local telecommunications sector and successfully liberalising both the fixed and mobile telecommunications markets.  I  set  up  appropriate  regulatory  safeguards  and  incentives  to  drive  the transition from monopoly to competitive provision of these services.

I also established regulatory and licensing regimes for the monopoly electricity and postal  sectors,  and  introduced  improved  service  standards  through  the  use  of regulatory incentives.

Skills and experience relevant to CICRA

First-hand  knowledge  of  the  Channel  Islands  economies,  markets  and  political institutions;

Experience in applying competition and regulatory principles to markets in a strategic and proportional way;

Direct experience and knowledge of the telecommunications, postal and electricity sectors in the Islands.

July 1997 – October 2000: Head of Market Operations (and Deputy Director), Office  of  the  Director  of  Telecommunications  Regulation  (now  ComReg), IRELAND

The ODTR was set up in 1997 to regulate the telecommunications market in Ireland, including  electronic  communications  radio  spectrum,  broadcasting  networks  and latterly postal services.

I was a founding member of the organisation and one of the Senior Management Team that merged 2 Government Department Divisions with disparate cultures into a new organization with a clear strategic focus and delivery capability. I developed and led the Market Operations team and was a key player in creating the new culture and strategy  for  the  organization,  as  was  recognized  by  my  appointment  as   Deputy Director.

I was responsible for the project to liberalise the Irish telecommunications sector with the  aim  of  creating  effective  competitive  markets  working  in  the  interests  of consumers.  The  project  was  initially  on  a  timescale  linked  to  derogation  from EU rules,  which  had  been  negotiated  by  the  Irish  Government.  I  successfully influenced  Government  to  abandon  the  derogation  and  bring  the  project  delivery deadline forward by 18 months, by demonstrating the benefits of competitive markets to the Irish economy and the ability to deliver in the shorter timescale. The project was completed successfully in the new timescale.

I also led on key aspects of national and international engagement including with the Government, European Commission, other regulators and business.

Skills and experience relevant to CICRA

Understanding of regulatory frameworks for telecommunications and experience in designing market structures, regulating and liberalising such sectors;

Merging 2 very different cultures into one organization and managing delivery of challenging programs at the same time;

Creating, leading and inspiring senior teams in complex regulatory environments. Other positions

April  1994 –  June  1997:  Manager,  Department  of  Transport,  Energy  and Communications, IRELAND

This  work  involved  regulating  first  the  broadcasting,  and  subsequently  the telecommunications  sectors,  before  the  independent  regulator  was  established.  I managed the team that successfully made the case for the liberalisation of the Irish telecommunications  sector  within  the  European  framework  and  developed  the legislation required to establish the first independent economic regulator in Ireland.

April 1990 – April 1994: Systems Analyst, Department of Transport, Energy and Communications, IRELAND

As  a  qualified  Systems  Analyst  and,  reporting  to  the  head  of  the  Information Technology Unit, I was responsible for meeting the IT needs of a diverse policy Department spread over 9 separate sites.

February  1985 –  March  1990:  Executive  Officer,  Department  of  Health, IRELAND

I was one of a small team that set up a new Health Promotion Unit within the Department and I led a number of national communications projects on public health issues, including smoking cessation, child vaccination and healthy eating.