1. 1 Energy Prices Presentation to Joint Committee on Transport and Communications 25 th February 2015

2. Electricity Prices – Summary of Issues 1.What Drives Electricity Prices Wholesale Commodity Prices – Gas is the main driver, not oil Infrastructure Costs – networks & generation capacity Island system – unique in Europe Dispersed rural population – very long over-head line networks low level of interconnection smaller scale generators Government Policy – support for renewables, security of supply, energy efficiency Market – competitive supplier costs/margins 2.Irish Prices v Europe Most Irish businesses paying below Eurozone average Irish residential broadly comparable to rest of Eurozone: Largest category of residential customers (representing average Irish consumption) paying 2% below Eurozone average 2

3. Electricity Prices – Summary of Issues 3.Impact of Falling Wholesale Energy Costs Wholesale Gas prices have significant impact Forward gas prices (in euro) fell by c. 18% in 2014 Have risen by c. 8% since start of 2015 Energy represents about 30% of total electricity price for domestic customers Suppliers buy in advance – this spreads and delays the impact of fuel price changes on end user prices and helps price stability 4.Electric Ireland Approach Implemented a 2% electricity price reduction before the winter Will pass through further price benefits to customers if wholesale price trends allow Margins are modest – low compared to GB Very aware of and proactively managing energy affordability issues: Disconnections down 20% in 2014. We do not disconnect a customer who engages with us. “Pay as you Go” Meter Installations up 25%. Number of customers needing instalment plan payment arrangements is reducing Additional protections for vulnerable and elderly customers. 3