Dr. Paul McGowan:

We do not have a single model that captures all the intricacies and complexities of the energy market. To take some of the topics we have talked about today, for example, in relation to a price control, we have quite sophisticated revenue models which determine what the outturn cost should be per kilowatt hour of, let us say, the distribution system or the transmission system on gas or electricity.

Through the SEM committee, we monitor closely the price trends in the market. A great deal of information is gathered there. Major inputs, such as the generation capacity statement that EirGrid produces annually, tell us the demand expectations and, therefore, the generation requirements that might be required.

There are a series of models and inputs we assimilate. Throughout the year, we would take various decisions, whether it is at one point in relation to the parameters for an auction and how much we need to buy or, later in the year, setting the tariff for transmission use of system and distribution use of system.

There is not a single model. It is far too complex to warrant a single model. There are a number of rather sophisticated inputs.