Mr. Nicholas Tarrant:

There are three parts to the question: price, process and capacity. First, on the process for how prices are set around new connections, because we are a regulated entity, regulated by CRU, we operate in five-year price reviews. At the start of each price review, the cost of connections is benchmarked. External consultants are brought in to look at those costs and they are adjusted as the years go on in the five-year period. Every year, as part of that review they are updated and published and that sets out in a transparent way the cost of new connections for different types of housing, for example.

I will give the committee a couple of examples. For a once-off house in a 20-unit development the cost is €1,038. For a rural connection it is €3,235. The way the regulatory model works is that the end customer pays about 50% of the actual costs and the other 50% is borne by the general customer base connected to the distribution network through bills.

On the process, we have a step-by-step process that is documented. We go through it with the developers and through the various housing agencies. As part of that, and similar to the Uisce Éireann engagement, we engage with customers all over the country through our regional offices, our area managers, and people like Mr. Rossiter at regional manager level. With the bigger developers, we have initiated a process where we work with them on a multi-year programme looking at where we should be on site for various stages of the construction period. We are looking to continue to improve. This is measured through our regulatory contract where there is independent measurement of our customer satisfaction. We are scoring overall in customer satisfaction at around the 82% mark but it does vary across the country. One can imagine that some of the biggest pinch points are along the east coast where we have some of the biggest housing challenges. I believe the process overall is working well.

During my introduction I also mentioned supply chain. We must keep ongoing dialogue with developers as they are going through their projects and as we are working around the supply chain to make sure we hit the targets. Thankfully, last year we saw a big increase in the delivery. A process like this is always a work in progress and we are always looking to improve it.

On the last point about capacity, we are looking, on an ongoing basis, at the future and where we should invest across the distribution network. In my opening statement I referred to a convergence happening around electrification of heat and transport, which is leading to more capacity needed on the network. That is also required for housing. We have a forward planning area in our business and asset management that looks forward and plans the projects of the future. Ultimately, they are approved by the Commission for Regulation of Utilities, CRU, as part of the price review process every five years.