Mr. Tom Marren:

As part of this, we are studying some of the other mechanisms being put in place. More and more countries are introducing what we are talking about. The golden ratio is 2:1. Therefore, if the cost of electrical power is twice the cost of fossil fuel power, heat pump technology is a good investment, does not add substantial operational costs and allows for the recovery of the asset. From a capital expenditure point of view, the technology typically costs at least ten times what boiler technology costs. Many European and global studies show that the target is 2:1. Members will probably hear from some industry members that we are seeing a ratio of 4:1 at the moment. Therefore, the proportion of electrical costs to gas costs is 4:1, which causes substantial operational risk. We can send to the committee numerous European studies that show 2:1 is the golden ratio and what it will accelerate by way of reducing carbon in the heat network if achieved.