Mr. Jim Gannon:

As the Senator outlined, the LEU rebalancing was the implementation of Government policy at a time we were in a different economic crisis between 2010 and 2021. As noted, the error resulted in a charge over and above that mandated by Government policy. This error and overcharge will now be assessed, calculated, and reconciled. When Russia invaded Ukraine, as part of the emergency response group, the energy security emergency group, ESEG, put together by Government, CRU brought to the table that this was one of the measures that could be actioned, or undone in this case, that could be brought in as a policy measure to ease some of the pressures on our residential and smaller consumers. It was on the basis of that group and that dialogue that we unwound the rebalancing.

In terms of demand flexibility measures, we note the energy efficiency directive and the upcoming scrutiny and delivery of that by the European Commission. Enshrined in that will likely be a significant requirement for member states to reduce their overall demand - not increase flexibility but to reduce their overall demand - against the levels that were predicted for 2030 in the respective national energy and climate plans 2020. When that comes through, it will send a very stark and specific signal to member states on demand. In terms of demand reduction overall, that is part of our consideration of how electricity and gas demand growth can be facilitated and how the CRU, but also the network companies and others, should take the carbon ceilings into account when assessing new demand applications. This is not just flexibility but also a consideration of that overall demand. The Senator is correct; this must be looked at now. It is must be part of our planning process and it is part of what we will consult on. I believe we have a call for evidence coming out in the next month on that seeking insights from industry and others.

When we mention incentivisation, we mean both bonus incentivisation and malice incentivisation. This could mean constraints or additional charges. It is likely that a broader suite of measures may be required for energy users, particularly business energy users, where some might have a greater ability to pay than others. A combination of bonus positive incentives and malice negatives incentives is likely to arrive at a better and more equitable outcome as we seek, not just to decarbonise and make our demand more flexible, but also reduce that aggregate demand in line with what is likely to be a challenging requirement on the energy efficiency directive.

Regarding smart meters and the legislative measures, I am happy to pass over to my colleague, commissioner MacEvilly.