GIG investment chairman joins Ofgem as legal head

Euan McVicar is the second recent departure from Macquarie Group to the UK electricity regulator, following Simon Wilde’s move earlier this month.

The Green Investment Group’s head of transaction structuring Euan McVicar has left the group to become general counsel at Ofgem, Infrastructure Investor has learnt.

McVicar will act as legal advisor to the board and chief executive of the UK gas and electricity regulator, while analysing and managing all aspects of legal risk for Ofgem. McVicar will lead a team of about 70 legal professionals at the organisation. Ofgem confirmed the role is a newly-created position.

The appointment comes at a pivotal time for the regulatory body which recently completed the consultation period for its new price controls, dubbed RIIO-2, signalling its intention to move forward with the lowest cost-of-equity range ever proposed. The cost of equity range of 3 to 5 percent is down from the previous 6 to 7.2 percent range, effective from 2021. National Grid said in May the proposals were “too low for the risk of a transmission company and will not offer adequate return for investors”.

“Euan will lead our team of lawyers supporting our work across the energy sector and joins Ofgem’s executive leadership team. His arrival comes at a time of significant change in the energy sector as Ofgem continues to work to make a positive difference for all energy consumers,” it said in a statement.

McVicar assumed the legal role from what was previously an investment-based position at the Macquarie-owned GIG. McVicar had been the transaction structuring chief for the 12 months before his departure, although he spent the previous four years as what was the then Green Investment Bank’s general counsel. McVicar was also the chair of the GIG investment committee and the chair of the investment committee for the GIB’s £1.1 billion ($1.4 billion; €1.2 billion) offshore wind fund.

Macquarie confirmed McVicar’s departure but declined to comment further, although it is understood there are no active plans to directly replace him at this time.

McVicar is the second Macquarie Group employee to join Ofgem in recent weeks after Macquarie Capital’s Simon Wilde departed earlier this month for a newly created role to provide financing and investment input into Ofgem’s ongoing work.