1. © Bord Gáis Energy Delivering on fuel affordability Mark Prentice, Head of Retail

2. Bord Gáís Energy First to bring choice to residential electricity customers through The “Big Switch” campaign in Feb 2009  Over 425,000 customers switched in the first two years (most successful electricity market entry in the world)  Since The Big Switch campaign launched, customers have received an average savings of €208* by switching to Bord Gáis Energy  Over €88m back into household budgets Innovation = customer benefit Bord Gáis Energy Home Team was established in 2010 as the first fully integrated home energy services proposition for customers to reduce energy consumption  Focus on energy efficiency solutions for domestic customers  Energy efficiency services provided to over 80,000 homes in 2011  From servicing and repair to boiler replacement, insulation and BER certification * Based on average 12% savings Year 1 and 10% Year 2 on standard rate with an average consumption of 5,300 kWh

3. Bord Gáís Energy Irish Gas Prices are currently amongst the lowest in Europe However, the economic environment is impacting on customers ability to pay their bills:  Reduce Incomes  Strained household budgets  Traditional payment methods unsustainable The Irish Energy Consumer  We need to look at policies which reflect the national economic circumstances and the difficult situation which customers find themselves in  We need to review the practicalities of introducing debt blocking, as evidenced in markets such as the UK, to allow suppliers to address the issues with customer in managing their debt AND to avoid the situation of customers, who need a practical solution, building up large unpaid bills with multiple suppliers Gas continues to be widely available and cheaper than home heating oil. Natural Gas is 24% cheaper than Home Heating Oil* * As per SEAI 1 st October 2011 Fuel comparison Kerosene v natural gas

4. Bord Gáís Energy BG Energy, together with SVP, MABS and other suppliers called on the CER to introduce debt flagging to prevent customers from building up large debts with multiple suppliers  The Debt flagging initiative was approved by the CER and implemented on 1 st October 2011 We have also been working closely with customers to assist them in making repayments  Introduction of new Level Pay in gas & electricity to allow over 50,000 customers to spread the cost of fuel across the year and avoid large bills in winter  The installation of over 21,000 free Pay As You Go (PAYG) gas meters to allow customers control their own energy costs - up from 1200 PAYG in 2010 Bord Gais Energy’s Response  The number of customer entering payment plans with BG Energy has more than doubled between 2010 and 2011 from 31,500 to over 82,000  Over 50,000 calls to/from our customer care team each month: from 12 staff to 90 at a cost of €3m pa  Over 100,000 customers receiving help & support to manage their arrears through PAYG or repayment plans Even with the hardship faced by customers in the current economic climate, BG Energy has continued to work with customers to ensure disconnections are held to an absolute minimum  No material increase between 2010 and 2011

5. Bord Gáís Energy Pay as You Go case study: NI Experience Significant use of PAYG meters in NI >60% of gas meters >40% of electricity meters Now unrestricted in terms of Regulatory thresholds for numbers installed Supported by NEA, NI Consumer Council and other stakeholders as a “consumer payment choice” Consumers view them as a positive payment method (no stigma) >85% of all gas meters installed outside of gtr Belfast are PAYG Use for debt avoidance as opposed to debt recovery (unlike GB) Benefits to consumers Upfront installation means no possibility of debt Weekly (even daily) payment for fuel = no large, one-off bills average vend = c£10 Fuel payment matched to weekly management of finances Ability to track & manage usage based on known consumption Increased choice for those in financial exclusion In RoI, we have installed c7% of gas market on PAYG and will begin rolling out electricity PAYG meters in February 2012 We will continue the rollout of PAYG meters to assist customers in managing their accounts.

6. Bord Gáís Energy Bord Gáis Energy are in favour of a national roll out of electricity and gas smart meters Trials completed by the CER have shown that smart meters facilitated an average 2.5% reduction in electricity and an average 2.9% reduction in gas consumption in homes where they were fitted. These reductions will mean lower energy costs for Vulnerable Customers. Possible other benefits of smart metering are that it will allow Suppliers to provide tailored advice and services to customers to help them reduce their energy costs even further. We support the proposals:  To rollout the meters in a timely and structured approach  To assist customers in the management of their energy usage  To provide In Home Display (IHD) units or similar service for Vulnerable Customers Bord Gáis Energy will continue to engage in industry working groups with the CER to ensure the best solution is implemented for customers. Smart Metering

7. Bord Gáís Energy Home Services BG Energy Home Team was established in 2010 to be a complete energy solutions provider for residential customers  Boiler Replacement & Heating Controls  Central Heating System Upgrades  BER  Attic & Cavity Wall Insulation BG Energy have developed the Better Home Bonus Package:  Facilitate SEAI Grants for customers  Avail of the BG Energy Discount  Interest free payments through the customer bill Real demonstrable savings to customers  Average of 77,000 Boiler Services per annum saving our customers in the region of 27GWh every year through a comprehensive service scheduling  This equates to a euro savings of approx €1.48m* for our customers Average Domestic Consumption 13,200kWh Pre service Efficiency70% Heat transferred to Home 9,240kWh Post service Efficiency72% New Consumption 12,833kWh Annual saving in consumption 367kWh Number of service in 2011 74,445 Total Energy savings 27.30GWh * Based on the standard rate of 5.432c/kWh

8. Bord Gáís Energy Energy Efficiency Improvement Scheme Woodview Park Energy Efficiency Improvement Pilot Scheme  BG Energy Home Team were invited by Dundalk Town Council to propose & cost measures to improve housing stock in Woodview Park to C1 BER rating  BG Energy Home Team specified Band A High Efficiency gas boilers with heating controls package and insulation of lofts & cavity walls  Work began in early December 2011 on 44 homes and is on course to finish by mid February 2012 * Based on the standard rate of 5.432c/kWh  27 of the houses are receiving first time gas connections and BG Energy are providing Pay as You Go meters free of charge to the tenants  BG Home Team will finalise the project by evaluating the post work BER’s and conducting meetings with the residents to ensure that customers understand how to utilise their new heating systems to best effect in order to reduce their spend on energy  Expected returns are between 30-40% savings on energy.

9. Bord Gáís Energy Summary There are significant challenges ahead for consumers and energy providers  Policies need to match consumer need  Debt blocking?  Pay as you go meter roll-out – what is our ambition? BG Energy is committed to supporting customers who engage with us in managing their fuel bills through:  Payment Plans  Level Pay  Pay As You Go meters BG Energy is committed to helping give value back to consumers  Using home energy services to drive down energy usage and resultant bills