Energy Efficiency Obligations, and other

thoughts…

Dave KirwanChief Operating Officer

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Contents

• Investment in Energy Efficiency

• Helping householder manage costs

• Technology deployment

• Some thoughts on policy

• Summary

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Investment in Energy Efficiency

Priority 1 - Supporting Area Based Approaches to Energy Efficiency

• In 2014 the Better Energy Communities fund provided €13.5m of funding to local communities to invest in Energy Efficiency.

• Bord Gáis Energy is actively supporting Community Based Organisations with the delivery of area based energy efficiency projects and we will continue to support these schemes in the future.

• In 2014 Bord Gáis Energy supported the installation of energy efficiency measures in Energy Poor households across Wexford, Cork and Galway.

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Helping households manage the costs of energy

Competitiveness

• Lowest standard electricity prices in Ireland

• Our new Dual Fuel product offers customers 10% discounts on electricity and gas

• Over €3m given back to Irish homes in terms of Tesco points & Clubcard deals

The Energy Engage Code

• Energy Engage Code : never disconnect an engaging customer.

• Proactive partner: MABS and SVP

Payment Plans

• BGE always offers a payment plan to customers who are having difficulty paying.

• BGE also offer products and services (Level Pay) allowing customers spread energy costs evenly over the year.

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Technology & innovation to reduce energy usage

• First supplier to roll out PAYG meters for Gas

• Over 50,000 Gas PAYG meters installed for financial hardship

• Over 7,000 Electricity PAYG meters installed in last 12 months

• PAYG customers use 11%* less energy than those on credit meters

Roll out of PAYG

Smart Metering & In Home Displays

• Actively engaged with the National Smart Metering Programme

• Free In Home Displays to our most vulnerable customers

Boiler Servicing & Heating Control

Upgrades

• Over 70,000 gas boiler services jobs each year helping to keep Ireland’s homes safe and efficient

• Free upgrades to heating control systems giving our customers more control over their heating costs

* Bord Gáis Networks figures

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Some Policy Considerations….

• The question of how to fund energy efficiency obligations need to be carefully considered

• We have to balance criticality of energy efficiency initiatives with

affordability

• Grant Funding still has a role to play

• General Taxation vs Energy Bill: less regressive

• UK Energy and Climate Change Committee: increasing use of levies on bills

is likely to hit hardest those least likely able to pay

• We need to innovate to delivery affordability…

• Green Paper

• Gas Connectivity

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Summary

1. Energy Suppliers can and should do more to help vulnerable customers manage energy costs:

PAYG and Smart meters can contribute greatly to creating an engaged customer

New technology & innovation will help suppliers partner with customers to manage their energy usage

2. Need to minimise the impact on energy costs to customers through a balanced approach to energy efficiency obligations

3. The Energy Industry needs to have an engaged customer…too much at stake not to…