Oireachtas Joint and Select Committees
Wednesday, 18 February 2015
Joint Oireachtas Committee on Transport and Communications
Regulation of Gas Industry: Discussion
9:30 am
Mr. Garrett Blaney:
The Deputy also mentioned profitability, which is a very important metric. While we do not want to see excess profitability, we also do not want to see unprofitable companies in the market. We want to try to achieve reasonable levels of profit. Unreasonable levels of profit would clearly be an indicator that the pricing is not right. A lot of the companies are vertically integrated in that they do not just have a retail arm but also have a wholesale arm. When we look at profitability, therefore, we look at both the retail and wholesale elements of the organisations. That is something that we are continually monitoring but there is no indication at the moment of a big jump in profitability. Overall, profitability has probably been coming down in recent years. That said, we must be continually vigilant on this.
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