Mr. Stephen Wheeler:

We do not always agree but I believe some important points have been made. When wholesale prices continue to fall, if everything else remains the same, then you can see further reductions passed on. However, as of now all other things are not remaining the same. One of the biggest challenges is around foreign exchange. We buy gas in sterling and we sell it in euro. The euro has weakened significantly against sterling. Over the last nine months it fell between 12% and 14%. That has a significant impact. It is important to consider the context. Wholesale gas price is a significant portion of end user price but there are other factors we need to keep an eye on. We have trading teams focused on how we can get the best prices for our customers but there is a lot happening that we do not have control over.

The Irish market is very competitive judging by the extent of energy provider advertisements on our televisions. It is also a very inert market. Over 50% of the total customers in Ireland have never switched. They have never availed of any introductory discounts in the market at the moment. Customers are very sticky and there is much inertia in the market. Existing customers that do make a move avail of introductory discounts and further discounts through payment methods.

Progress has been made around disconnections, with engagement of vulnerable customers, to make sure they are on the lowest standard rate. My colleagues share that view. In regard to big consumers versus small shops, it is very much about appetite for risk. Big consumers have teams in place to take positions. Sometimes the positions work out well for them, other times the positions come with more risk. This needs to be balanced when one is considering the issue of big consumers versus small shops.