Mr. Eddie Byrne:

The very first step in the process is the determination of the revenue requirement. This happens every year roughly between March and June. That effectively takes the approved allowances from the CRU as part of that five-year cycle Mr. Gannon mentioned and converting that into annual amounts of money to see the totality of what should be recovered from the distribution customers. That process happens annually, and we are looking forward. We are looking at the following year and the current year, but we are also looking back for any changes in the number of customers, the demand coming from customers, or the import capacity from customers. All of those variables ultimately get adjusted as part of that exercise. The unique part of this, with the LEU rebalancing, was that we should make it a discrete adjustment for particular customer groups between the residential and the LEUs. That seems quite straightforward and was applied correctly in the very first year. As you roll forward each year, the second step in that process is to adjust the revenue requirements by customer numbers, demand and principally their import capacity. There could be changes in the mix of customers. The logic was that we had made the change of €50 million in the previous year, so the tariffs coming forward into this year have that reflected in them. We can now simply change those by the variables we need to consider in this current year. Hence the percentage change adjustment methodology. That was the logic we think people used at the time, and they then reverted to that more simplified approach of the percentage change mechanism. That was the tried and trusted approach prior to this being put in place in the first instance. In hindsight, when we look at that, obviously that was not correct. As time rolled on the number of customers changed. The demand at customer level, the import capacity, and the number of customers within each group all changed. As a previous speaker mentioned, there was a smaller number of LEUs back in 2010-2011. There is a larger number now. The adjustments we make are at the wholesale level. We could not be certain of the exact adjustments made to people's energy bills back in 2010-2011 because we were billing the retail company. It is ultimately up to the retail company to form a charge or levy for a particular customer. There was a different customer mix from 2010-2011, whether it was residential or LEUs, to today. We have seen that mix change over time. There are completely different groups of customers in place at the two points in time.