1. Title of presentation and date1 Energy Essentials for Cost Reduction NIPA 4 th October 2012

2. Title of presentation and date2 Presentation Overview ESB Group / Electric Ireland Market Price Drivers – Electricity Procurement Options Summary

3. Title of presentation and date3 About ESB Group ESB Group ESB Services & Electric Ireland ESB NetworksNI Networks Group Finance & Commercial Generation & Wholesale Markets Group People & Sustainability Innovation

4. Title of presentation and date4 About Electric Ireland Selling generation output to I & C market from Synergen CCGT, Ringsend (400 MW) Coolkeeragh CCGT, Derry (400 MW) Renewable energy sources Pool Pass Through Contracts Offering tailored solutions Competitive STOD prices Retail Gas Offers (ROI & NI) Energy Efficiency Services High Quality Customer Service Emphasis on Win-Win partnerships Competitive supply business of ESB Group: Established in 2000 – 32 county business Wholly owned subsidiary company of ESB

5. Title of presentation and date5 Electricity market shares by consumption (GWh) – Northern Ireland Source: RETAIL MARKET MONITORING Quarterly Transparency Report AUG 2012

6. Title of presentation and date6 Market Price Drivers Electricity – Key Price Determinants Gas prices (NBP) Coal prices Pool prices Stg/€ exchange rates (regulated charges) Carbon price Regulatory Charges International events

7. Title of presentation and date7 Market Price Drivers - Natural Gas Trends For October 1st 2012, the most recent measurement date, the year ahead gas price is 62.65 p/ therm).

8. Title of presentation and date8 Market Price Drivers - Pool Price Price €/MWH Size (MW) Units stacked up in order of price – driven by Fuel Unit that meets demand set the price Wind & Hydro CHPCoal & Peat Interconnector CCGT Gasoil, HFO, etc Capacity Payment charged to suppliers and awarded to generators Fuel Price the fundamental driver – especially gas SummerWinter

9. Title of presentation and date9 9 Pool Price Movements – SMP Prices Close correlation with Day Ahead Gas prices

10. Title of presentation and date10 Market Price Drivers – Regulatory Charges Impact depends on consumption profile

11. Title of presentation and date11 Regulatory Charges – Typical HV Customer (5 GWh) Excludes CCL

12. Title of presentation and date12 Procurement Strategies – Contract Options Fixed price contracts – up to 3 yrs Flexible contracts – partial Flexible contracts – fully transparent Pool Price Pass Through

13. Title of presentation and date13 Procurement Strategies other than fixed price Indexed Contracts Pool Pass Through + Mgt Fee Day Ahead Gas price / Heren Index Framework Flexible Contracts Monthly / Quarterly Lock in of prices Monthly Partial volume lock in Fully Flexible Contracts Fixed Energy Charge (Conversion Charge) £cost per MWh Variable Energy Charge Lock and Unlock transactions Default gas/carbon price is Day Ahead Price Minimum volume but can participate through Portfolio / Basket arrangement.

14. Title of presentation and date14 Summary Wholesale energy markets (Gas) are the key market drivers of energy costs. Company needs to agree appropriate contract option to balance the management of budget risk and cost containment. NB to understand the benefits of Fixed / Flexible alternatives. If Flexible – must involve all stakeholders Clearly agreed strategy Devolved decision making in accordance with agreed strategy Regular performance reviews

15. Title of presentation and date15 Thank you Michael Counihan Sales Manager Tel: 01 893 4417 Mob: 087 6495306 E-mail: michael.counihan@electricireland.ie