1. Effect of new Regulated Charges Daniel Horgan Head of Industrial & Commercial Sales at Energia

2. Regulated Charges 2014/15 Commission for Energy Regulation – CER publishes the use of systems charges to be apply each year from the 1 st October for the following 12 months The charges are separated out into the following areas: Eirgrid – Transmission Use of Systems or TUoS ESB Network – Distribution Use of Systems or DUoS Public Service Obligation Levy or PSO

3. CER Regulated Charges (1) Transmission Use of Systems – TUoS TUoS relates to the cost of transporting energy through the high voltage system In 2013/14 the total cost amounted to €322.4m The new cost for 2014/15 will be €341m This represents an overall increase of circa 5.7%

4. CER Regulated Charges (2) Distribution Use of Systems – DUoS This relates to the cost of transporting energy through the lower voltage system In 2013/14 the total cost amounted to €758m The new cost in 2014/15 will be €725m This represents a decrease of circa 4.35%

5. CER Regulated Charges (3) PSO - 2013/14 €211m V’s 2014/15 €335m  2013/14 per KVA €1.54 V’s 2014/15 per KVA €2.85 or 85% - LEU  Overall Increase of circa €124m or 59% PSO ItemTotals 2013/14Totals 2014/15% Difference Lough Ree€ 32,270,000€ 39,590,00023% West Offaly€ 30,499,000€ 42,085,00038% Edenderry Power€ 12,093,000€ 21,891,00081% AERs-€ 7,981,000€ 2,617,000-133% CAP 5 (Aughinish and Tynagh)€ 48,172,000€ 74,380,00054% REFIT€ 51,068,883€ 90,500,50077% Sub-Total€ 166,121,883€ 271,063,50063% 2012-13 R-Factor€ 0€ 47,821,380 2013/14 PSO-related CfD's€ 0€ 5,572,692 Other17€ 44,806,636€ 10,982,604-75% Total PSO € 210,928,519€ 335,440,176 59%

6. SEM Regulated Charges 2014/15 The CER also regulates the charges that relate to the Single Energy Market - SEM Separated out as follows: Supplier Capacity Charge (SCC) is a payment made to electricity generator for their availability to run Imperfections payments relate to congestion on the electrical network Market Operator charge is for the cost of running the SEM

7. SEM Regulated Charges SCC currently €566m for calendar year 2014 2015 SCC €575m represents a 1.5% increase Imperfections 2013/14 €147m (33,220 GWH) 2014/15 €186m (33,220 GWH) Market Operator 40% decrease, in real term this is very small number with little or no impact

8. The net effect of changes to the Regulated Charges in 2014/15 is an average increase of 4.7%

9. If you have any questions please don’t hesitate to contact your Key Account Manager