Mr. Dermot Nolan:

It is set down in legislation that we must determine what is termed the cost of capital for Bord Gáis, the efficient cost of capital for every network company. That would be done by all the regulators. Given the issues of the financial crisis in Ireland, this is very regrettable but after studying this and employing consultants - which was necessary for a job of this magnitude - we have had to give for at least one year a somewhat higher level of increase. As Ireland's debt costs continue to fall, we hope the factor will disappear next year. Nonetheless, the network cost rose, although it has not been in any sense the main driver of the increasing gas prices over the past two years. It amounted to a small portion this year.

I hope I have answered the question of why an increase was granted of 8.5% for Bord Gáis when it sought a 7.5% increase, and I have done my best to do so. It was regrettable. When we consulted, we made it clear that the figure could go up or down. The company sought an increase of over 9% and we cut that to 8.5%.