Mr. Dave Kirwan:

We all have our own internal expertise. Bord Gáis Energy has a trading division in Cork which interacts with its counterparts across Europe. In purchasing gas the local liquid market is in the United Kingdom. When we purchase gas there, it is shipped across the interconnector into Ireland, in respect of which we pay transportation charges. Unfortunately, because we depend so much on the importation of natural gas, we pay an extra carriage charge to transfer it from the United Kingdom to Ireland, which accounts for the difference one sees in absolute price levels in the United Kingdom and Ireland.

I am sure every company has a different approach in how it tries to manage volatility and smooth out the peaks and troughs. The period over which we buy is probably unique to us versus our competitors. Our team in Cork has developed its expertise over 20 years and we always try to procure the best price for our customers. It is important to state we do not trade to speculate and make a profit. We trade to try to secure a stable price. We have very strict risk mechanisms for our traders. They are not encouraged to bet on future gas trades but encouraged to lock things down in order that our customers are protected against volatility in the markets. Our approach is probably mirrored by the other companies.