Mr. Tom Gillen:

I thank the joint committee for its invitation to come before it. I am managing director of Energia and accompanied by Mr. Gary Ryan, our retail director. As we are probably not as well known as the other companies represented here, I will spend a few moments providing some background information.

Energia is involved in the generation and supply of energy to businesses and homes throughout Ireland. We employ 450 people directly and another 100 indirectly. Energia is one of Ireland's 50 top businesses and a major contributor to the national energy infrastructure and security of supply. Since 1999 we have invested €1.2 billion in gas-fired generation in north Dublin and renewable generation across the island. We are going to invest a further €1 billion to support renewable generation in the coming years. The company is, therefore, a major investor in and contributor to national energy infrastructure and economic progress in Ireland. We are very pleased to support that agenda.

In January 2014 Energia entered the Irish home energy market, with a dual fuel offer of electricity and gas. This involved an initial €10 million investment. From the outset, we stated we would always be competitive in terms of price. We consistently offer market-leading products. The average discount enjoyed by customers who switch to Energia is 15% off our standard rates, which is very competitive. Some 83,000 customers have switched to us for their gas and electricity supplies, of whom 97% are on discounted tariffs that are significantly below standard tariffs in the market, even in the aftermath of recent price reductions. Since our entry into the energy market, switching levels among consumers have increased by approximately 70% per year. The committee has heard from the CER that the promotion of switching and competition will have the most positive impact on customer costs. Despite the increase in switching levels, the fact remains that a large proportion of customers have not switched in order to avail of the benefits of the competitive market.

The committee is aware that commodity pricing has become more favourable and where the opportunity arises to do so, we will take advantage of this. We will pass on as much of the ensuing benefit as possible to our customers. I say this bearing in mind that, as a new market entrant and a competitive operator, it is in our interests to keep prices as low as possible in order that we might retain customers.

I again thank the committee for the invitation to come before it. I will be happy to reply to questions members may wish to pose.