Mr. Jim Gannon:

Briefly, we are part of the internal and integrated energy market of the European Union. Therefore, many of the design aspects of our market follow those regulatory rules that we do not have the ability to change or work around, necessarily. For example, if one jurisdiction changes its own regulatory market, it can result in price reduction. However, a consequence of that can be – we are seeing the risk arise now in the Iberian Peninsula – that one jurisdiction would then subsidise the electricity of a neighbouring jurisdiction because its electricity is cheaper and it exports, because that is the way the market will allow the electricity to flow. That subsidisation will not just happen from an economic perspective. There will also be a security of supply dividend for the electricity because it is cheaper and will then flow in a particular direction. Notwithstanding the fact that there are interventions that are possible and we believe that Europe is now looking significantly at those, they need to be considered in terms of their indirect consequences. It is better if they happen at a pan-European level because that means that in all jurisdictions the same rules will apply and there will not be that arbitrage between different countries where one jurisdiction could end up subsidising another one or reducing its own security of supply. We welcome any developments at European level. We believe that is the place for those solutions to arrive and arise. We follow that and contribute in any way we can, including through ACER, the European Union Agency for the Cooperation of Energy Regulators.

It is also important to state that for us, the UK is our electricity trading partner. Therefore, it is important that when Europe is looking at its internal electricity market and how it will work between European countries, cognisance would also be given to the fact that our trading partner is now a third country. Notwithstanding the fact that the UK has agreements and interconnection between itself and the internal electricity market, we need to ensure that we are part of that dialogue and that the Irish market is recognised for operating against the framework of the internal energy market in Europe although our main trading partner is the UK. It is important that is part of the conversation to protect the Irish consumer as some of these measures are being explored at European level.