Electricity & Gas Retail Markets Annual Report 2015

Transcription

1 Electricity & Gas Retail Markets Annual Report 2015 DOCUMENT TYPE: REFERENCE: DATE PUBLISHED: QUERIES TO: Information Paper CER/ th May 2016 The Commission for Energy Regulation, The Exchange, Belgard Square North, Tallaght, Dublin

2 Scope and purpose of this report The purpose of this annual report is to provide consumers, industry and other interested stakeholders with relevant information on the developments of competition in the electricity and gas retail markets in The annual report draws on a range data sources from the past year and provides an overview of the key developments in the retail market. Market monitoring forms an important part of the CER s activities. This information helps to inform new policy and in the assessment of existing regulations. This report is part of a suite of other reports including monthly switching reports, disconnections reports, quarterly reports and emerging reports based on new market monitoring data which the CER will begin publishing in The information on the retail markets as provided in this report gives an insight into how the retail market is functioning and any specific issues that need to be addressed. The report draws on additional information from a number of key sources including CER decision papers, stakeholder inputs and industry discussions, audit findings and the CER s consumer survey. This report begins with an overview of the supply side of the retail market including market developments and new entrants in 2015, considering past developments since market deregulation. The customer focused side of the retail markets is then considered, including the level of customer engagement with the market. Engaged customers are critical for effective retail markets and drive competition between suppliers. The last part of this report looks at the outcomes of these combined market indicators for consumers. Specifically, it focuses on changes in prices for domestic customers, the quality of services provided as evidenced by the CER s audits, and outcomes for improved consumer protection. This includes a reduced number of disconnections and effective PAYG and debt flagging processes. Important findings from the CER s consumer survey are also presented here. The status of supplier s market share at the end of 2015 and trends over time is then presented. 2

3 Executive Summary This report looks across a range of indicators and data sources to provide an overview of key developments in the retail energy markets in the past year. The following sets out some of the key messages contained in this report; Key Messages: Developments in the Energy Market Competition is continuing to develop in the electricity and gas markets, and energy customers have a range of suppliers, payment options and price plans to choose from. The CER will continue to monitor the electricity and gas retail markets throughout 2016 to ensure that competition continues to develop for the benefit of consumers. In 2015 there were a total of 8 electricity suppliers and 6 gas suppliers. Since deregulation of the electricity and gas markets, 3 new electricity suppliers and 1 new gas supplier have entered the electricity and gas retail markets. There has been growth in the market share of a number of new entrants, for example; PrePayPower entered the electricity market in By 2015 it held almost 5% of market share by consumption. Energia entered the domestic market in By 2015 it held 4.42% of market share by consumption. Pinergy also grew above 1% of market share in the second quarter of This means that customers are starting to respond to the range of offers available. Customer Switching Ireland ranks well globally in terms of switching rates and is considered a warm active market. The 2015 ACER-CEER Market Monitoring report showed that Ireland had the second highest electricity switching rate of 14% out of 28 EU countries, while for gas it had the highest switching rate of 18.7%. Over 300,000 electricity customers switched supplier in 2015 while the total number of customers switching gas supplier was 106,862. Switching rates in both the electricity and gas markets were consistently above 10% in both markets for

4 Electricity & Gas Retail Prices An outcome of retail competition in the electricity and gas markets is that energy customers have a range of choices in terms of supplier, payment options, innovative products and price plans. The price of both standard and discounted plans decreased between 2015 and The greatest savings continue to be made by customers who switch from standard to discounted plans. Prices fell between 2014 and 2015 and again between 2015 and In electricity, standard domestic prices fell between 2% and 4.57%, while in gas they fell between 2% and 5%. Prices decreases were also seen across all discounted plans. In 2015, the difference between the highest priced standard plan and lowest priced discounted plan was 235 for domestic electricity and 126 for domestic gas (based on typical consumption of 5,300kWh for electricity and 13,800kWh for gas). This means that large savings can be made by customers who switch from standard to discounted plans. Across the majority of suppliers, customers who opted to pay by direct debit and receive paperless bills were able to avail of the highest discounts. Eurostat Reports Domestic electricity prices have continued to decline since In semester 1 of 2015 the average price for the dominant consumption band for customers in Ireland declined below the Euro Area average. It increased in the second half of 2015 but remained below the Euro Area average. Business electricity prices for the dominant consumption band were above the Euro Area average in Prices in this band increased by 2.6% in the first half of 2015 and by 0.12% in the second half of In terms of gas, domestic prices decreased in the dominant consumption band for gas in the first part of 2015, and domestic gas prices were below the Euro Area average. Prices increased in the second half of 2015 but remained below the EU average. Business gas prices decreased in both the first half and second half of 2015 were below both the EU and Euro area average for all of Consumer Survey 2015 This report outlines the findings from a survey of consumer (domestic and SME) attitudes to electricity and gas supply competition and associated issues. An important finding of the report was the high level of satisfaction of domestic customers with their supplier. Minimum service requirements which suppliers must adhere to are set out in the Supplier Handbook. In 2015 the CER undertook a review of the Supplier Handbook and will publish a decision paper detailing a revised handbook once consultation is completed in

5 Customer Protection, Debt & Disconnections The number of PAYG meters installed for customers experiencing financial hardship in 2015 declined compared to 2014 for both electricity and gas. This reduction was in line with a reduction in the number of disconnections. The number of customers indicating a desire to switch suppliers with outstanding debt above a 220 increased for electricity between 2014 and 2015 and reduced in gas for the same time period. Disconnections of customers for non-payment of account (NPA) declined significantly in 2015 compared to 2014; by 11% in electricity and 12% in gas. The total number of disconnections between Q and Q was 7,783 for electricity and 3,542 for gas. Market Share Overall consumption in the electricity sector grew by 3.9% in The total number of electricity customers in 2015 was 2,241,399 and total consumption was 25,072,268 MWhs. This compares to 2,236,317 customers and 24,135,358 MWhs of total consumption in There was also growth in the gas market, which increased by 4% in terms of customer numbers. The total number of customers in 2015 was 694,594 and total consumption was 19,760 GWhs. This compares to 665,187 customers and 19,150 GWhs of total consumption in In electricity, Electric Ireland remained the largest supplier in terms of customers and MWhs across all segments. In 2015 Electric Ireland s consumption market share decreased in the domestic sector by 1.61%. Between Q and Q4 2015, Energia showed the highest gain in domestic electricity consumption with an increase of 1.22% of market share. In the gas market the biggest gain in domestic market share was also seen by Energia with a 1.89% increase in terms of customer numbers, while SSE had the largest loss with a decrease of 2.40%. Bord Gáis Energy remained the largest supplier in terms of customers and consumption and its market share continues to be monitored. There has been growth in customer numbers and consumption in the larger segments of the non-domestic sector of the retail market. This is particularly notable in the Large Energy Users (LEU) segment in electricity and in the Regulated Tariff Formula (RTF) segment in gas. There was a rise in consumption in the LEU segment from 1,712 MWhs in 2014 to 1,744 MWhs in 2015; and for the RTF segment in gas there was a rise in consumption from 6,329 GWhs in 2014 to 8,287 GWhs in

6 Supplier Audits In 2015, the CER continued its consumer protection activities. The results of each of the exercises set out below are published on the CER web site and can be found through the links below. The last section of this report gives an overview of the findings of each of these audits. Audit of Suppliers Compliance with the Code of Practice on Vulnerable Customers In 2015, the CER conducted an audit of compliance with the Code of Practice on Vulnerable Customers (CPVC). Where breaches of the Code of Practice on Vulnerable Customers were found, the CER engaged with particular suppliers to remedy the breaches. Audit of Accredited Price Comparison Web-Sites compliance with the CER accreditation frame work. The annual independent audit of accredited price comparison websites for 2015 was completed and no major infringements were found. Both Bonkers.ie and Switcher.ie remain accredited by the CER. 6

7 Table of Contents Scope and purpose of this report..2 ExecutiveSummary....3 Table of Contents Introduction The Commission for Energy Regulation Objectives of this report Energy Market Structure and Developments Introduction Market developments Active Suppliers and New Entrants Summary Energy Market Structure and Developments Customer Switching Introduction Electricity Market Switching and new registrations Total switching Switching by customer category Net switching by supplier New registrations Gas Market Switching and New registrations Total switching Switching by customer category Net switching by supplier New registrations Summary Customer Switching Electricity and Gas Retail Prices Introduction Components of Prices in Ireland Supply Costs Network Costs Taxes and Levies Eurostat Reports. 29 7

8 4.7 Supplier Prices in Ireland Analysis of average electricity and gas prices Summary - Prices Consumer Survey Introduction Summary- Consumer Survey Customer Protection Introduction Debt flagging Pay as you go meters PAYG Disconnections for non-payment of account Disconnections Total Disconnections Electricity market Disconnections Gas Market Disconnections Vacant Premises Proxy Disconnections Non Domestic Electricity and Gas Summary Customer Debt and Disconnections Market Share Consumption and Customer Numbers Introduction Electricity Market Overall trends in retail electricity Domestic Electricity Market Small-sized business electricity market Medium-sized business electricity market Large Energy Users (LEUs) Gas Market Overall trends in retail gas Domestic gas market Industrial and commercial (IC) gas market Fuel v ariation tariff (FVT) gas market Regulated tariff formula (RTF) Summary Market Share Audits of Compliance

9 8.1 Introduction Audit of Code of Practice on Vulnerable Customers Audit of Price Comparison Web Site Conclusion and Next Steps Conclusion Next Steps...78 Appendix

10 1.0 Introduction 1.1 The Commission for Energy Regulation The Commission for Energy Regulation (CER) is Ireland s independent energy and water regulator. The CER was established in 1999 and now has a wide range of economic, customer protection and safety responsibilities in energy. The CER is also the regulator of Ireland s public water and wastewater system. The CER s primary economic responsibilities in energy cover electricity generation, electricity and gas networks, and electricity and gas supply activities. As part of its role, the CER jointly regulates the all-island wholesale Single Electricity Market (SEM) with the Utility Regulator in Belfast. The SEM is governed by a decision making body known as the SEM Committee, consisting of the CER, the Utility Regulator and an independent member. The overall aim of the CER is to protect the interests of energy and water customers. The CER has an important related function in customer protection by resolving complaints that customers have with energy companies. The CER s core focus in safety is to protect lives and property across a range of areas in the energy sector. This includes safety regulation of electrical contractors, gas installers and gas pipelines. In addition the CER is the safety regulator of upstream petroleum safety extraction and exploration activities, including on-shore and off-shore gas and oil. In 2014 the CER was appointed as Ireland's economic regulator of the Irish public water and wastewater sector. Further information on the CER s role and relevant legislation can be found on the CER s website at Objectives of this Report The purpose of this paper is to provide industry and interested stakeholders with relevant information on the developments of competition in the electricity and gas retail markets in This report analyses trends in a number of key indicators, including consumption, customer numbers, switching, pay-as-you-go meters, debt flagging, disconnections and prices. It also outlines the key developments in the market. The primary sources of data in this report are: Meter Registration System Operator (MRSO), ESB Networks and Gas Networks Ireland (GNI). 10

11 2.0 Energy Market Structure and Developments 2.1 Introduction This section contains information on the structure of the electricity and gas retail markets. The main market segments and the suppliers operating in each are identified and key developments in the supply side of the retail market are discussed. 2.2 Market Developments The following table outlines some key developments in terms of market entry in the electricity and gas retail markets over time. There were a number of developments during 2015 that have had positive implications on the level of competition and transparency in the electricity and gas markets. The prices of both standard and discounted offers for both the electricity and gas domestic markets fell across all suppliers in 2015, in response to decreases in wholesale gas prices and also in response to competition. The CER began implementation of its 2014 decision on Market Monitoring in the Electricity and Gas Retail Markets and began to collect data from suppliers and conduct initial analysis for internal reporting purposes. This framework includes all indicators that the CER will collect from networks and suppliers in order to comply with the EU 3 rd package and to ensure that the CER has effective oversight of the retail markets to ensure that competition continues to develop and that customers are protected. Year Electricity Gas 2005 February: Full market opening. Open to competition Single Electricity Market developed Airtricity enters domestic electricity market February: Bord Gáis Energy enters domestic electricity market October: Business market segments deregulated April: Domestic market segment deregulated October: Debt flagging process introduced. October: New PAYG meters for financial hardship introduced. July: Full market opening. Open to competition. Flogas enters domestic gas market. PAYG meters for financial hardship & lifestyle choice introduced. May: Airtricity enters domestic gas market. April: Electric Ireland enters domestic gas market. October: Business market segments deregulated. October: Debt flagging process introduced. 11

12 2012 January: Prepaypower enters domestic market with supplierled lifestyle choice prepayment model. March: First price comparison website, Bonkers, accredited by CER. July: Supplier Handbook published, outlining minimum service levels that suppliers must provide customers with. October: Harmonised retail systems between NI & RoI May: Second price comparison website, USwitch, accredited by CER. July: Pinergy enters domestic market with supplier-led lifestyle choice prepayment model 2014 January: Energia enters domestic electricity market March: First price comparison website, Bonkers, accredited by CER. July: Supplier Handbook published, outlining minimum service levels that suppliers must provide customers with. April: Decision on criteria for the deregulation of domestic gas. May: Second price comparison website, USwitch, accredited by CER Panda Power enters the domestic electricity market Table 2.1 Timeline of key retail market developments January: Energia enters domestic gas market. July: BGE price deregulated in the domestic market. 2.3 Active Suppliers and New Entrants There were 8 active suppliers in the electricity retail domestic and business markets in 2015 and 7 active suppliers in the gas retail domestic and business markets. In 2015, Panda Power entered the domestic electricity market. Energia entered the domestic market in 2014 and now have 72,677 domestic customers in electricity and 38,348 in gas. A key development in the domestic and non-domestic retail markets in the past number of years has been the growth of suppliers who entered the market since deregulation. Combined, non-incumbent suppliers now account for about 45% of customers in the domestic electricity market and just over 48% in the domestic gas market. While former incumbent suppliers continue to supply a relatively large share of the market, section 3 of this report demonstrates how their market share has changed over time. The main suppliers in the electricity and gas retail markets are identified in table

13 Domestic Non-domestic Domestic Gas Non-domestic gas Electricity Electricity Bord Gáis Energy Bord Gáis Energy Bord Gáis Energy Bord Gáis Energy Electric Ireland Electric Ireland Electric Ireland Electric Ireland Energia Energia Energia Energia SSE Airtricity SSE Airtricity SSE Airtricity SSE Airtricity PrePayPower Vayu Flogas Flogas Pinergy Vayu Panda Power Gazprom Table 2.2 Suppliers active in the electricity and gas markets in Summary Energy Market Structure and Developments Since deregulation of the electricity and gas markets, 3 electricity suppliers and 1 gas supplier have entered the markets, with a total of 8 electricity suppliers and 7 gas suppliers active in A number of important market developments can be seen between 2005 and

14 3.0 Customer Switching 3.1 Introduction This section contains data on customer switching activity with a breakdown of supplier switches in the relevant markets. Data on new registrations is also examined. Registrations represent the total number of sites that were connected in a period 1. Switching refers to the action where a customer changes from one supplier to another. It is measured by the number of completed switches in a period (not the number of switching requests). There is a free and easy switching process in place in Ireland which facilitates customers that wish to switch their supplier. Switching information is critically important in monitoring the effectiveness of competition, the level of customer engagement in the market and the choices available to customers. Competition in the electricity and gas markets is driven by engaged customers that look for suppliers offering attractive products and tariffs. However, there are a number of factors that may impede switching, including a lack of clear information and the complexity of tariffs along with a lack of trust in the market. These issues are explored further through the findings from our customer survey in the next section of this report. Evidence suggests that a large proportion of customers have never switched supplier, and only a portion of customers are availing of the benefits of switching and discounted offers available in the market (for example, switching has ranged between 11% and 15% between 2011 and 2015). Non-domestic customers may also be affected by a lack of transparency in prices and contracts offered by suppliers, as due to the nature of bespoke plans there are no comparison tools currently available. It is important to note that this data measures the total number of switches completed in a given period. It does not report separately the number of unique switches and the number of repeat switches. Through the CER s new market monitoring framework, data is being collected on the number of customers renegotiating their plans with their supplier. This gives some further insight into customer engagement in the retail market and shows that the number of renegotiations is a significant addition to the switching rate. Data on renegotiations will be published by the CER as part of its monthly change of supplier reports in While the switching rate overall has decreased in recent years, it is still high relative to a number of EU countries. The 2015 ACER-CEER Market Monitoring Report detailed the switching rate in Ireland in 2014 in comparison to other EU countries. In electricity, Ireland had the second highest switching rate of 14% after Portugal, while in gas in had the highest switching rate across all EU countries of 18.7%. 1 New registration data may include a small number of sites that were reconnected/ reregistered in addition to sites that are new to the system. Switching data does not include new registrations 14

15 3.2 Electricity Market Switching and New Registrations This section analyses the level and trend in switching and new registrations in the electricity market by supplier and customer category. 3.3 Total Switching The total number of switches completed in the electricity market in 2015 was 303,187. This represented a decrease from 2014, during which time 312,480 customers switched. Switching remained above the 20,000 level per month throughout Total Number of Switches Q1 78,448 68,381 Q2 75,060 80,276 Q3 77,080 81,894 Q4 72,599 81,926 Table 3.1 For 2015, the highest number of switches occurred in February, with 27,347 switches in total. The average number of switches for 2014 was 26,040 while the average number of switches for 2015 was 25,226. The CER is aware that there is an increasing number of customers that are renegotiating contracts with their existing supplier and will be considering this as part of its reporting under its new market monitoring framework. Figure

16 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 % of total customers The switching rate is measured by calculating the proportion of total customers that switched in the period. The average number of customers for the year is calculated from the quarterly customer numbers data. The average switching rate in electricity in 2015 was 13.53%. This rate compares well internationally and is indicative of an active market 2 Total Electricity Market Total Number of 454, , , , , , ,187 Switches Switching rate 21% 21% 15% 11% 12% 14% 13.53% Table 3.2 Total switching in electricity 3.4 Switching by category Appendix 1 of this report looks at the trend in switching across all electricity market segments. Domestic switching peaked in the first six months of 2009 following the entry of Bord Gáis Energy and SSE Airtricity into the domestic market. Switching in the business sectors is more volatile than in the domestic sector and this reflects seasonal and contractual influences. Contract renewal dates in the LEU sector generally take place around October and January and this explains some of the differences in levels across each year. The level of switches for each market segment in the electricity sector over time are shown below. % Switching Rate per Sector per Month 5.000% 4.500% 4.000% 3.500% 3.000% 2.500% 2.000% 1.500% 1.000% 0.500% 0.000% Total Switches Domestic Small Business Medium Business LEU Figure According to the VaasaETT description of levels of switching 16

17 3.5 Net Switching by Supplier Net switching represents the net gain or loss in customer numbers experienced by suppliers. It is estimated by the gain in customers less the loss in customers experienced by the supplier. Figure 3.3 The table below outlines the net switching levels across suppliers between 2014 and Net switching for Electric Ireland and SSE Airtricity was negative for 2015; for all other suppliers it was positive. Electricity Net Switching Electric Ireland Energia SSE Airtricity Bord Gáis Energy PrePayPower Pinergy Others Q ,427 6,777-9,136-3,565 8,877-1,474 Q ,654 11,284-13, ,655-1,346 Q ,812 15,706-10,134-7,478 7,543-3,175 Q ,386 5,088 1,218-6,773 2,241-2,613 Q ,520 7,073 1,062-3, ,039 Q ,534 4,019-7,399 6,102 1,580-3,232 Q Q ,566 20,711-24,099 28,119 9, ,885 Table 3.3 Net switching in electricity by supplier, Q Q

18 Jan-10 Mar-10 May-10 Jul-10 Sept-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sept-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Table 3.3 can be compared to the market share data presented in this report and shows growth in 2015 in customer numbers for Energia, Bord Gáis Energy, PrePayPower and Pinergy. 3.6 New Registrations New registrations in electricity are situations where a customer has a new connection or has moved into a site, which has been de-energised for at least 3 months and has remained vacant during the three month period 3. Electric Ireland continues to be the supplier associated with the majority of new registrations in electricity. It s share of new registrations was 80% of total registrations for 2015, compared to 86% in 2014 and 84% in When a new customer wishes to register for the supply of electricity to their premises, they are given the opportunity to choose a supplier. If they do not choose, their default supplier will be Electric Ireland. The CER is currently taking action through industry fora to find options available so that all suppliers have an equal opportunity to avail of new registrations. 2,500 2,000 1,500 1, Others PrePayPower Bord Gáis Energy SSE Airtricity Energia Electric Ireland Pinergy Figure 3.4 New Electricity registrations over time by supplier, January 2010-December ESB Networks. Sites normally remained registered to a supplier for 3 months after they are deenergised 18

19 From Table 3.4 we saw that throughout 2014 and 2015 net switching for Electric Ireland was negative, however its share of new registrations is buffering its loss in market share through switching. Electricity New Registrations Others PrePayPower Bord Gáis Energy SSE Airtricity Energia Electric Ireland Pinergy Q , ,388 Q , ,669 Q , ,230 Q , , ,115 1, , ,122 % share % 1.55% 5.54% 6.73% 4.62% 80.40% 0.47% 100% % share % % Table 3.4 New Registrations in Electricity by Supplier, Q Q4 20 Total 19

20 3.7 Gas Market Switching and New Registrations This section analyses the levels and trends in switching and new registrations across suppliers in the gas market, as well as providing information on switching by customer segment. 3.8 Total Switching The total number of switches completed in the gas market in 2015 was 106, 862. This represented a decrease in the total number compared to 2014 where 109,750 switches were completed. Total Number 2014 of Switches 2015 Q1 23,997 26,979 Q2 26,330 26,305 Q3 30,363 28,189 Q4 29,060 25,384 Table 3.5 Figure 3.5 The average number of switches per month between January 2010 and January 2015 was 9,032 with an average of 8,828 switches per month between January 2015 and January The highest rate of switching in 2015 was between September and October with 10,174 switches. The switching rate is measured by calculating the proportion of total customers that switched in the period. The switching rate in gas in 2015 was 16%. This represented a lower proportion to that in 2013 (which had a rate of approximately 18%). By 20

21 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 % of total customers Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 international comparison the gas market is still considered a very active market with regard to switching. Total Gas Market Total Number 93, , , , , ,862 of Switches Switching rate 15% 17% 17% 18% 17% 16% 3.9 Switching by category Table 3.7 Total switching in gas The trend in switching for the domestic and IC gas market segments varies quite significantly throughout each year. More detailed graphs showing the switching rate per year for domestic and non-domestic gas customers can be found in Appendix % % Switching Rate per Sector per Month 3.000% 2.500% 2.000% 1.500% 1.000% 0.500% 0.000% Residential IC Total 3.10 Net Switching by Supplier Figure 3.6 The data from table 3.8 shows that, similar to the case in 2014 and the experience in electricity, Bord Gáis Energy consistently experienced a net loss in customer numbers in Electric Ireland has experienced a net gain since it entered the domestic market in March 2011 and it continued to experience significant net gains in gas throughout

22 Figure 3.7 The table below outlines the net switching levels across suppliers in Bord Gáis Energy experienced the highest net loss of customers for 2015 while Energia experienced the largest net gain. Flogas and Electric Ireland also had a net gain in customers for Airtricity Bord Gáis Energy Electric Ireland Energia Flogas Gazprom VAYU Q ,426 1,372 4, Q ,037-2,275 4,456 2, Q ,278 1, , Q ,177 3, , ,084-2,675 5,997 9,472 1, ,265-35,430 17,081 24,867-2, Table 3.8 Net Switching in Gas by Supplier, Q Q New Registrations New gas registrations are defined by GNI as the situation where a new meter is fitted or a meter is unlocked at sites where there is no supplier registered 4. The figure below shows the trend in new registrations by supplier since January A registration unlock is where the site has been locked for greater than 18 months and there has been no consumption since the lock was carried out and no customer registered. 22

23 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April ,100 1, SSE Airtricity Bord Gáis Energy Electric Ireland Flogas Energia Vayu Figure 3.8 New Registrations in Gas By Supplier, January 2010 December 2015 In 2015, Bord Gáis Energy continued to be the supplier associated with the majority (64.57%) of new registrations in the gas market. Its share of new registrations was slightly less than for 2014 (64.66%). Though it had a net loss of customers through switching in 2014 and 2015, new registrations are not included in the figures for switching and so its total loss in market share was decreased through new registrations. SSE Airtricity Bord Gáis Energy Electric Ireland Flogas Energia Vayu Total Q Q Q Q % share % 64.57% 17.55% 8.05% 5.09% 0.23% % % share % 64.66% 15.36% 9.53% 2.52% 0.29% % Table 3.9 New Registrations in Gas by Supplier, Q Q

24 3.12 Summary Customer Switching Switching rates in both the electricity and gas markets are above 10%. Under the VasaETT description of the levels of switching, the electricity and gas markets are considered active and Ireland ranks well globally in terms of switching rates. The total number of switches completed in the electricity market in 2015 was 303,187. This represented a decrease from 2014, during which time 312,480 customers switched. The total number of switches completed in the gas market in 2015 was 106, 862. This represented a decrease in the total number compared to 2014 where 109,750 switches were completed. New data on renegotiations of contracts between customers and their suppliers demonstrates further engagement in the market; the CER aims to begin publishing this data in The CER intends to review the market processes for new registrations through industry fora. 24

25 4.0 Electricity and Gas Retail Prices 4.1 Introduction There are many factors to consider in analysing trends and levels of prices in Ireland. Specific market conditions may result in a large proportion of price changes being outside of the control of (or external to) suppliers and other stakeholders in Ireland. Notwithstanding these external factors, it is important to ensure that prices are competitive and set in a transparent way for customers. This section outlines the components of end user price and identifies the recent trend in energy prices in Ireland. It also identifies innovations in the market and the range of offers available in Components of Prices in Ireland Energy prices in Ireland are made up of a number of different components, each driven by differing factors. Prices are based on costs incurred by a supplier in serving its customer base. The following diagram indicates the key components that comprise retail energy prices in Ireland and the key external/internal factors that impact on each component: DRIVERS Cost of distribution and transmission Investment in new infrastructure and maintenance of the network DRIVERS costs faced by supplier in supplying energy: labour Operational margins Network costs Supply costs DRIVERS Public service obligation Carbon tax VAT rate Taxes and Levies Wholesale costs DRIVERS energy costs (including impact of exchange rates) capacity costs & costs of operating generators market operator cost Figure 4.1 Composition of energy prices 25

26 Figure 4.2, Components of household prices by consumption band in Ireland, SEAI 2015 Figure 4.2 shows the components of household electricity prices for 2015 for the two dominant consumption bands in Ireland, Band DC and Band DD. These are split into energy and supply costs, network costs and taxes and levies. This is discussed further in section 4.6. It is important to note that each component highlighted in figure 4.1 affects prices to a different degree. The impact of a change in each component on the final price also varies. 4.3 Supply Costs The high reliance of Ireland on imported fossil fuels, in particular gas 5, for electricity generation results in Ireland having a high exposure to currency fluctuations. Variations in global prices are outside the control of suppliers and other stakeholders in Ireland. These result in Irish-based energy supply companies developing hedging strategies that allow them to minimise the impact of sudden global energy price shifts. This sets the price that suppliers pay for energy over a certain period, and while it serves to increase price stability it means that there is a lag in the change in prices at the wholesale and retail level. The CER in conjunction with the NIAUR (Northern Ireland Authority for Utility Regulation) 6 jointly regulate the all-island wholesale electricity market, which is known as the SEM (Single Electricity Market). The SEM includes a centralised gross pool (or spot) market which is fully liquid and electricity is bought and sold through a 5 Oil prices do not significantly impact on retail prices. 6 Together referred to as the Regulatory Authorities/RAs. 26

27 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Gas Euro/therm Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 SMP Euro/MWh Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 market clearing mechanism. Suppliers purchasing energy from the pool pay the system marginal price for each trading period. The Regulatory Authorities publish quarterly reports that show changes in fuel and carbon prices which provide transparency to the market. The figure below shows the price of electricity in this centralised gross pool market in the SEM between 2012 and 2015, along with the average price across each year. SEM Spot Electricity Prices SMP Euro/MWh 2012 average 2013 average 2014 average 2015 average Figure 4.3 About 95% of gas consumed in Ireland comes from Great Britain. The National Balancing Point (the trading hub for gas in Britain) price in pence per therm of gas has seen a decline since The figure below shows the change in day ahead gas prices over time at the NPB (National Balancing Point), the main point where gas for Ireland is traded. It also shows the average price between 2012 and Day Ahead NBP Gas Prices Gas Euro/therm 2012 average 2013 average 2014 average 2015 average 0.00 Figure

28 Figures 4.3 and 4.4 demonstrate that while wholesale prices have fallen between 2014 and 2015, there have been large fluctuations in price throughout each year. The change in the average SEM Spot Electricity price and NPB Gas price between 2014 and 2015 is not as large as the overall change in this time period. 4.4 Network Costs The CER has responsibility for regulating network prices in Ireland. The CER directs and carries out annual reviews of the charges for access to and use of the electricity and gas distribution systems. The CER also reviews the costs incurred by ESB and GNI in developing, maintaining and operating the system. These charges are ultimately passed onto customers. These regulated costs are necessary in order for networks and other market operators to recoup the cost of transmitting and distributing electricity, and suppliers are required to pay these annually. Changes to these charges generally come into effect on the 1st October annually (electricity capacity charges are updated on 1st January). While it is the decision of each supplier whether or not to pass through such costs to final customers, it is likely that most suppliers pass through all such costs. These costs, with the addition of the applicable taxes, are referred to as Pass Through Costs. The decision paper on Allowed Revenues and Gas Transmission Tariffs for 2014/15 (CER/14/140) and decision paper Allowed Revenues and Gas Distribution Tariffs for 2014/2015 (CER/14/139) detail the projected changes to gas transmission and distribution tariffs for this period. The average Transmission Tariff for UK gas was projected to fall by 5.5% and it was projected that distribution tariffs would decrease in nominal terms by 4.7%. The allowed revenue for electricity networks (ESBN and EirGrid) is collected from Suppliers via a Distribution Use of System (DUoS) and Transmission Use of System (TUoS) charge. Suppliers are charged for each of the end-users to whom they supply electricity. There are different DUoS and TUoS charges for each type of customer with the type depending on several factors including the voltage an enduser is connected at, the type of meter installed, or if electricity is exported. Between the 2014/15 tariff year and 2015/16 tariff year, the change in DUoS and TUoS charges had an impact of 1% on electricity end users overall. 28

29 4.5 Taxes and Levies Suppliers must also charge their customers the PSO levy 7, carbon tax and VAT. A number of other charges are regulated and approved annually (for example network charges and certain generation-related charges in electricity). The PSO levy is a subsidy charged to all electricity customers in Ireland. It is designed by the Irish Government and consists of various subsidy schemes to support its national policy objectives related to renewable energy, indigenous fuels (peat) and security of energy supply. The proceeds of the levy are used to contribute to the additional relevant costs incurred by PSO-supported electricity generators which are not recovered in the electricity market. 4.6 Eurostat Reports Eurostat publishes data on average end user prices for 5 consumption bands in the domestic market and for 6 bands in the Industrial and commercial markets. The most relevant consumption bands for the majority of residential consumers are the DC band (2,500 5,000 kwh of consumption per annum) and the DD band (5,000 15,000 kwh of consumption per annum). In the lower consumption bands the average price per kwh is higher because the standing charges and network charges form a larger proportion of the annual costs. Band IB ( MWh) and band ID (2, ,000MWh) are the dominant consumption bands in Ireland and are reported on in section 4.8. Band IC, which represents consumption between MWh, is the band typically reported on by Eurostat. The charts below break down the average electricity prices for these dominant consumption bands into (i) energy and supply charges, (ii) network charges and (iii) taxes and levies. These charges are presented as a percentage of the euro cent average end user price for the dominant consumption band for domestic and nondomestic electricity. Disaggregated domestic gas price data is not available at present. 7 The Public Service Obligation Levy (PSO) is charged on all electricity customers and designed to support the national policy objectives of security of supply, the use of indigenous fuels (i.e. peat) and the use of renewable energy sources in electricity generation 29

30 Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden UK c/kwh Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland France Germany (until 1990 Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom c/kwh Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 5% 5% 23% 17% 24% 20% 18% 21% 16% 22% 19% 27% 26% 14% 23% 37% 36% 36% 36% 34% 31% 29% 28% 21% 40% 39% 24% 53% 51% 49% 21% 29% 65% 21% 32% 47% 36% 43% 13% 26% 37% 45% 33% 40% 29% 29% 27% 28% 34% 40% 40% 35% 81% 20% 20% 21% 72% 60% 50% 55% 57% 35% 35% 44% 59% 19% 41% 37% 32% 43% 43% 34% 35% 35% 36% 32% 39% 25% 32% 29% 31% 31% 16% 25% Energy & supply Network Costs Taxes & Levies Figure 4.5 Disaggregated Domestic Electricity Price, Band DD, S % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1% 1% 0% 5% 6% 16% 15% 14% 8% 4% 3% 9% 10% 8% 5% 1% 4% 15% 14% 16% 15% 12% 16% 23% 20% 27% 22% 33% 21% 25% 41% 43% 36% 32% 25% 41% 32% 58% 34% 28% 45% 51% 37% 41% 61% 35% 44% 45% 33% 40% 31% 32% 15% 27% 84% 72% 64% 86% 74% 71% 56% 60% 59% 55% 50% 42% 52% 39% 41% 35% 40% 51% 49% 47% 49% 49% 42% 44% 32% 43% 36% Energy and supply Network costs Taxes and levies Figure 4.6 Disaggregated Industrial and Commercial Electricity Price, Band IB, S Indicative data from Eurostat shows that energy and supply costs comprise a significant proportion of the average Irish domestic and non-domestic electricity price in comparison with other EU countries (of 56% for domestic and 65% for nondomestic prices). 30

31 Taxes and levies in Ireland account for one of the smallest proportions of final price in the EU. The higher price of energy and supply costs in Ireland is related to our high reliance on imported fuel. Due to Ireland s low population density relative to other EU countries, the transmission and distribution networks serve a lower number of people and so the cost of such network charges is higher. 4.7 Supplier Prices in Ireland The electricity and gas markets in Ireland are fully price deregulated, therefore the CER no longer regulates electricity or gas prices in the domestic or business markets. Prior to price deregulation, the incumbent electricity supplier, ESB Customer Supply (now Electric Ireland), and the incumbent gas supplier, Bord Gáis Energy, had to apply to the CER if they were proposing changes to tariffs. All suppliers, including incumbent suppliers, can now set their own prices for all classes of customers. There are a large number of tariff plans available to domestic and business customers that are provided by electricity and gas suppliers in Ireland. These plans offer customers different tariffs comprised of standing and unit charges (and in some instances daily service charges). Suppliers can also offer different rates depending on payment or billing method (e.g. paperless, online, direct debit etc.). All suppliers are required to publish details of the tariff plans that are available to domestic customers. Suppliers of businesses often provide bespoke plans to their business customers and information on such plans is generally not published by suppliers. In 2015, four suppliers operated in both the domestic electricity and gas markets (SSE Airtricity, Bord Gáis Energy, Electric Ireland and Energia), and all actively promoted bundled dual fuel offers with price discounts for domestic customers that avail of both services from the same supplier. Tables 4.1 and 4.2 show the percentage change in standard domestic prices for each supplier between 2012 and 2016.The price of discounted plans across suppliers also decreased in Electricity Price Changes 2012/13 change 2013/14 change 2014/15 change 2015/16 change SSE Airtricity 4.70% 3.50% -2% -4.17% Bord Gáis Energy 4.80% 2.20% -2.50% -4% Electric Ireland 5.90% 1.70% -2% -2.40% Flogas Na Na Na Na Pinergy Na 1.70% -2% -3% PrePayPower Na 1.70% -4% -4.57% Energia Na NA - -2% Table 4.1 Supplier Standard Domestic Electricity Price Change Announcements 31

32 8% % Standard domestic Electricity Price Changes % 4% 2% 0% -2% -4% 2012/ / / /16 SSE Airtricity Bord Gais Energy Electric Ireland Pinergy PrePayPower Energia -6% Figure 4.7 Gas Price Changes 2012/13 change 2013/14 change 2014/15 change 2015/16 change SSE Airtricity 8.50% 2% -4% Na Bord Gáis Energy 8.50% 2.04% -3.50% -5% Electric Ireland 8.50% 2% -2.50% -4.20% Flogas 10.20% 1.95% -3% -5% Pinergy Na Na Na Na PrePayPower Na Na Na Na Energia Na Na - -2% Table 4.2 Supplier Standard Domestic Gas Price Change Announcements 12.00% % Standard Domestic Gas Price Changes % 8.00% 6.00% 4.00% 2.00% 0.00% -2.00% -4.00% -6.00% 2012/ / / /16 SSE Airtricity Bord Gáis Energy Electric Ireland Flogas Energia Figure 4.8 Prices fell between 2014 and 2015 and again between 2015 and In electricity, domestic prices fell between 2% and 4.57%, while in gas they fell between 2% and 32

33 5%. The price a customer with typical consumption values (5,300kWh for electricity and 13,800kWh for gas) would have paid on average for their annual electricity and gas bills is presented below. In 2015, the price differential of potential savings for a domestic electricity customer switching to a discounted tariff was 235 and for a domestic gas customer was 126. Between 2014 and 2016, new market entrants and an increase in the range of innovative electricity and gas billing methods and offers expanded the choices available to customers. Innovations in 2015 included new PAYG plans, plans providing cash back, level pay plans (which allow customers to pay the same amount every month for their electricity, based on their consumption in the previous year), green offers and plans which include the provision of extra services and devices. The discounts that could be availed of by customers in 2015 continued to focus on billing and payment methods. Across the majority of suppliers, customers who opted to pay by direct debit and receive paperless bills were able to avail of the highest discounts. Suppliers can offer discounts using these methods as it reduces their administrative costs, however it may present a barrier to switching and engagement by customers who for a number of reasons cannot pay by direct debit or opt for paperless billing. In 2015 the CER began to monitor the features of price plans including exit fees, termination charges and clauses and payment methods. As part of its market monitoring activities the CER is also reviewing the reasons customers do not switch or avail of better products in the electricity and gas retail markets. Tables 5.2 to 5.4 detail the annual average bill for standard and discounted plans in 2015 across a range of suppliers. These figures include all final charges such as VAT, PSO/Carbon tax and supplier service charges where applicable. They are based on typical consumption values of 5,300 kwh for a domestic electricity customer and 13,800kWh for a domestic gas customer. Annual Average Domestic Urban 24hr Electricity Bill, 2015 Supplier Standard Plan Discounted Plan Electric Ireland 1,211 1,061 Energia 1,253 1,099 Bord Gáis Energy 1,218 1,118 SSE Airtricity 1,271 1,036 Panda Power - - PAYG Lifestyle Choice Plans PrePayPower 1,373 Pinergy 1,347 Electric Ireland PAYG 1,280 Table 4.3 Annual Average Urban 24hr Domestic Electricity Bill per Supplier, January 2015, including PSO, VAT & supplier service charges as applicable, typical consumption of 5,300kWh 33

34 Annual Average Domestic Gas Bill, 2015 Supplier Standard Gas Direct debit & online billing discount plan Electric Ireland Energia BGE Flogas Table 4.4 Annual Average Domestic Gas Bill per Supplier in January 2015, including Carbon Tax and VAT, based on typical annual consumption of 13,800kWh in gas Annual Average Domestic Dual Fuel Bill, 2015 Supplier Direct debit & online billing discount plan Electric Ireland 1,949 Energia 1,944 BGE 2,027 SSE Airtricity 1,901 Table 4.5 Annual Average Domestic Dual Fuel Bill per Supplier in January 2015, including Carbon Tax, PSO and VAT where applicable, based on typical annual consumption of 13,800kWh in gas and 5,300kWh in electricity 4.8 Analysis of average electricity and gas prices The following section outlines Eurostat data on average energy prices in Ireland up to semester 2 of This data is published by the SEAI (Sustainable Energy Authority of Ireland) 8 on a bi-annual basis. The published data is comprised of national average prices over a period over 6 months. Semester 1 prices are average prices between 1 st January and 30 th June of each year, semester 2 prices are average prices between 1 st July and 31 st December of each year. The prices shown below are the average half-yearly electricity and gas prices for households and industrial end-users, characterised into separate segments based on predefined annual consumption bands. The average electricity prices include electricity/basic price, transmission, system services, meter rental, distribution and other services. The average gas prices include gas basic price, transmission, system services, meter rental, distribution and other services. EU aggregates are calculated by Eurostat by weighting the national prices with the latest available national consumption for either the household sector or the industrial sector. Prices are collected and published considering three levels of taxation; Prices excluding taxes and levies Prices excluding VAT and other recoverable taxes Prices including all taxes, levies and VAT 8 SEAI, Electricity and Gas Prices in Ireland 1 st Semester, (January-June)

35 Trends in S1 (January-June) and S2 (July-December) This section examines the current level and trend in energy prices in Ireland and in comparison with EU prices 10. Data is reported by the SEAI twice yearly and the latest published data (July-December 2015, S2 2015) is examined here. The SEAI is responsible for collecting, collating and reporting data on prices on Ireland s behalf. 210% 190% 170% 150% 130% 110% 90% 70% 50% Euro Area Band DA (1.8%) Band DB (10.3%) Band DC (36%) Band DD (44.2%) Band DE (7.6%) Figure 4.9 Irish Domestic Electricity Prices Relative to EU Average, including all taxes (market share of band) In 2015, the average price for consumption band DD in Ireland was just below the Euro Area average and slightly above the EU 28 average. Average price decreased in the dominant consumption band, DD, from semester to semester Average Domestic Electricity Prices, Band DD (45.8%) 2014S1 2014S2 2015S1 2015S2 Euro area (EA , EA , EA , EA , EA , EA , EA , EA19) Ireland Table 4.6 For the second highest consumption band, DC, the average price was above the Euro Area Average and increased between semester 1 and 2 of Average Domestic Electricity Prices, Band DC (34.5%) 2014S1 2014S2 2015S1 2015S2 Euro area (EA , EA , EA , EA , EA , EA , EA , EA19) Ireland Table This section of the report references SEAI data and S1 and S data extracted from the Eurostat website. 10 The Euro area average refers to the average of prices in all countries with the Euro, as compared to the EU

36 150% 140% 130% 120% 110% 100% 90% 80% Euro Area Band IA (8.7%) Band IB (30.7%) Band IC (15.8%) Band ID (25.4%) Band IE (10.1%) Figure 4.10 Irish Business Electricity Prices Relative to Euro Area Average, excluding VAT (market share of band) In Semester 1 and 2 of 2015, prices for business electricity customers rose. Band IB accounts for the highest proportion of non-domestic electricity consumption in Ireland and is higher than the EU and Euro area averages. The prices presented exclude VAT and other recoverable taxes and levies; businesses can generally recover VAT but not other charges (such as energy taxes, carbon taxes and climate-change levies, so the level of ex-vat taxes is important in understanding fluctuations in business electricity prices. A Public Service Obligation (PSO) levy is charged to all electricity customers to support certain peat, gas and renewable generation plants as mandated by Government and approved by the European Commission. This is included in non-recoverable costs for business electricity. Small business consumers have had a flat rate charge of for the PSO per month in 2014/15, a 71% increase on 2013/14. Average Business Prices, Band IB S1 2014S2 2015S1 2015S2 Euro area (EA , EA , EA , EA , EA , EA , EA , EA19) Ireland Table These prices exclude VAT and other recoverable taxes and levies, but include non-recoverable taxes. 36

37 110% 100% 90% 80% 70% 60% 50% Euro Area Average Band D1 (6.1%) Band D2 (92.3%) Band D3 (1.7%) Figure 4.11 Irish Domestic Gas Prices Relative to EU Average, including all taxes (market share of band) In S band D2 accounted for the highest proportion of Irish domestic gas consumption and remained below the Euro area average price. It rose between Semester 1 and semester 2 of 2015 but remained below the Euro Area Average in semester 2 of Average Domestic Gas Prices, Band D2 2014S1 2014S2 2015S1 2015S2 Euro area (EA , EA , EA , EA , EA , EA , EA , EA19) Ireland Table

38 120% 110% 100% 90% 80% 70% 60% Euro Area Band I1 (9.4%) Band I2 (16.1%) Band I3 (21.0%) Band I4 (38.3%) Figure 4.12 Irish Business Gas Prices Relative to EU Average, excluding VAT (market share of band) The dominant consumption band in Ireland for non-domestic gas customers is band I4. The average price for this band was below both the EU and the Euro area average prices in semester 1 of 2015 and decreased between semester 1 and semester 2 of The Euro Area average decreased to a greater extent between semester 1 and 2 however. In Ireland, there were no non-recoverable taxes on gas for industry up to the second semester of 2009, but since 1 May 2010 a carbon tax has been levied. Average Business Gas Prices 12, Band I4 2014S1 2014S2 2015S1 2015S2 Euro area (EA , EA , EA , EA , EA , EA , EA , EA19) Ireland Table These prices exclude VAT and other recoverable taxes and levies, but include non-recoverable taxes. 38

39 4.9 Summary Prices Energy prices are made up of a number of different components including network costs, wholesale costs, supply and retail costs and other factors such as the PSO levy, VAT rate and carbon tax. Energy and supply costs comprise a large proportion of final price in Ireland in comparison to other EU countries. A significant share of this is accounted for by the cost of fossil fuels, particularly gas. All suppliers are required to publish details of the tariff plans that are available to domestic customers. In 2015 large savings were available in the market, with customers switching from a standard plan to a discounted plan continuing to make the highest savings. In 2015, price related competition intensified in the electricity and gas markets, with price reductions towards the end of 2015 and in the beginning of 2016 across all suppliers for both discounted and standard plans. 39

40 5.0 Consumer Survey Introduction Each year the CER conducts a survey of the retail and SME electricity and gas markets in the Republic of Ireland to measure customer experiences and attitudes. This research has been ongoing since 2011 and in 2015 was based on a statistically robust sample of domestic customers who use gas or electricity and with low to medium consumption non-domestic customers. Domestic customer engagement, awareness and switching -86% of domestic electricity customers and 88% of gas customers were satisfied with their current supplier in In terms of customer s awareness of competition, 92% of respondent spontaneously mentioned Electric Ireland. -Mention of BGE and SSE Airtricity increased following a decline in For gas, Bord Gáis Energy had the highest level of awareness among those surveyed of 96%. -Switching rates among those surveyed were 12% for electricity and 16% for gas. The rate of switching amongst dual fuel customers is 22%. -Trust and satisfaction with service were the top reasons not to switch. Amongst those who have never switched and did not consider switching, satisfaction with their current provider was their main reason for not switching. -Those who did not switch indicated that they did not believe that they would save a significant amount if they switched. Knowledge of pricing structures remains low across all four markets and represents a potential barrier to the effective evaluation of competitor s offers. -Awareness of the offers currently on the market was low across both the electricity and gas domestic markets, with about half of respondents claiming not to be aware of any offers such as unit price discounts for fixed term contracts, percentage reductions, and loyalty scheme benefits. - Customers of Prepaypower show the greatest awareness of offers, while customers of Electric Ireland have the lowest awareness. -In the gas market, Flogas customers show the greatest awareness of offers, while current customers of Bord Gais Energy and are less likely to be aware of what offers are currently on the market. Figure 5.1, Trends in domestic customer responses to the 2015 Consumer Survey The findings of the 2015 consumer survey give further insight into the levels and trends in switching and new registrations in The survey allows for an indicative measure of consumers awareness of the options available in the markets and their ability to switch provider, along with consumer s understanding of their tariffs and supplier communications. 40

41 Non-Domestic customer engagement, awareness and switching -73% of SME electricity customers and 75% of gas customers were satisfied with their current supplier in Electric Ireland had the top level of awareness for the electricity market, while Bord Gáis Energy recieved the highest unprompted mention amongst gas suppliers. -A total of 35% of electricity customers and 42% of gas customers indicated that they were not aware of any offers other than their current one. - The level of switching amongst respondents was 30% in the SME electricity market and 23% in the IC gas market. -91% of SME electricity customers who switched during the previous twelve months stated that the switching process was easy or very easy (2014: 88%, 2013: 85%). -86% of SME gas customers who switched during the previous twelve months stated that the switching process was easy or very easy (2014: 95%, 2013: 78%). -SME respondents indicated that the motivation for switching was overwhelmingly driven by financial imperatives, with 9 in 10 electricity and 100% of gas switchers citing saving money on the bill as the primary reason for switching supplier. Figure 5.2, Trends in domestic customer responses to the 2015 Consumer Survey It is evident from the results of the consumer survey that a number of factors influence customer s perceptions of and engagement in the market. These factors include trust and satisfaction with suppliers, understanding of bills and the switching process and how easy customers find the comparison of tariffs. A number of customers in the 2015 survey cited a lack of trust as a reason they did not switch supplier; it is important that customers can trust the information provided by suppliers and have a high level of confidence in the energy retail market in order to engage. Linked to this is the level of understanding among customers of the information provided to them and awareness of the offers that are available in the market. The CER has taken a number of steps to ensure that information provided to customers is clear and that they are treated fairly in their interactions with suppliers. In 2014, CER conducted an audit on the Code of Practice on Marketing and Sign Up as the consumer survey indicated that customers had a low level of understanding of the terms and conditions of the deals offered during marketing campaigns. In 2015 the CER reviewed the Supplier Handbook, which sets out the minimum requirements suppliers must adhere to in serving customers. This handbook is currently under consultation and it is expected that an updated handbook will be published in

42 6.0 Customer Protection 6.1 Introduction It is the CER s statutory obligation to ensure a high standard of protection for final customers in the electricity and gas markets. In this regard the CER has introduced a number of measures and tools aimed at protecting customers through a range of policy decisions. A key policy tool used by the CER is the Supplier Hand Book, which sets out the minimum service levels that electricity and gas suppliers must provide to their customers. This includes compliance in the areas of marketing, vulnerable customers, complaint handling, billing, disconnections and PAYG meters. The requirements set out in the Supplier Handbook includes a number of detailed points which electricity and gas suppliers must include when they are preparing the content of their Codes of Practice or Customer Charters. The CER monitors compliance with these requirements through formal annual audits and ad-hoc monitoring audits. The findings of the formal audits are published annually and are briefly mentioned in section 8 of this report. Customers in debt and those who are disengaged with the market may experience worse outcomes in the energy retail markets. Due to the essential nature of energy supply it is imperative that such customers are protected. This section outlines the trends in debt flagging, PAYG installs and disconnections in The CER Consumer Survey and audits carried out by the CER are detailed in sections 7 and 8 of this report. These are important activities carried out by the CER on an annual basis which aim to understand factors such as disengagement in the market and ensure that cutomers are protected. In dealing with customers that are in arrears, suppliers must take a number of steps prior to disconnecting a property. The disconnection of a customer s energy supply should always be the last resort and all suppliers are required to offer a payment plan and a PAYG to customers in arrears in advance of proceeding to disconnect. Suppliers must also facilitate a customer that wishes to nominate a third party to represent them 13. The Supplier Hand Book also states that a supplier should provide in its Code that it conducts its business in such a manner that minimises the number of customers that are disconnected. Suppliers must work with the relevant state agencies or state sponsored bodies/recognised charities to assist household customers with arrears or a payment plan in the event that difficulties are experienced. Actions contained in the Codes of Practice above and those taken by industry and the CER are working to protect customers and reduce the rate of disconnections. 13 e.g. money advisor including MABS, a recognised charity or Social Welfare Representative. 42

43 6.2 Debt Flagging Where a customer requests to change to a new supplier, the customer s existing supplier has the facility to inform the new supplier if the customer has an outstanding debt, above the industry thresholds approved by the CER 14. The new supplier can then choose whether to proceed with or cancel the change of supplier (CoS) request where this flag has been raised. The debt flagging process has been in place since October 2011 and the CER monitors the use of the debt flagging facility by both losing and gaining suppliers on an on-going basis. The tables below show the total number of debt flagged change of supplier requests that were raised in the electricity market in 2014 and Table 6.1 shows that the number of debt flags has decreased in electricity between 2014 and 2015 and table 6.2 shows that the number of debt flags in gas has increased. Elec Debt Flags Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Total Debt Flags 1,061 1,398 1, , ,792 4,014 Total debt Flags as % of overall 1.67% 1.73% 1.67% 1.17% 1.61% 1.29% 1.11% 1.27% Switches 1.56% 1.32% % of debt Flagged CoS requests 23.60% 29.00% 31.40% 37.23% 35.30% 36.30% 33.10% 21.80% Cancelled 30.31% 31.63% Debt Flagged CoS not cancelled ,349 2,731 Table 6.1 Debt Flagging in Electricity Q Q There were 858 debt flags raised in the electricity market in Q (corresponding to approximately 1.11% of all CoS requests in that quarter) and 922 in Q (corresponding to approximately 1.27% of all CoS requests in that quarter). Approximately 33% of all debt flagged CoS requests were cancelled by the new supplier in Q3 2015, while 21.8% were cancelled in Q This is similar to Q where approximately 36 % of debt flagged CoS requests were cancelled. Gas Debt Flags Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Total Debt Flags Total debt Flags as % of overall Switches 0.69% 0.96% 0.95% 0.96% 0.65% 0.98% 1.25% 0.81% 0.89% 0.92% % of debt Flagged CoS requests Cancelled 50.60% 44.10% 44.30% 38.49% 46.29% 52.33% 44.03% 37.13% 44.37% 44.95% Debt Flagged CoS not cancelled Table 6.2 Debt Flagging in Gas Q Q Domestic threshold: 225 for > 60 days from due. Small business & unmetered supply: 600 for > 30 days from due. Medium sized business: 1,200 for > 30 days from due. 43

44 There were 352 debt flags raised in the gas market in Q (corresponding to 1.25% of gas switches) and 237 raised in Q The figures were higher than in Q2 where 175 flags were raised, representing 0.98% of total gas switches in that period. Approximately 44.03% of debt flagged CoS were cancelled by the new supplier in Q3 2015The % of debt flagged CoS requests cancelled has fluctuated between 37% and 52% between 2014 and At the start of 2016 the CER published a decision paper on debt management in the electricity and gas retail markets (CER/16/014), further to its previous decision in 2011 (CER/11/823) whereby debt transfer would apply to customers who had received a free Pay As You Go meter for financial hardship reasons. Following a wide review of the issues consulted upon including a meeting with the industry, in this decision paper the CER decided not to mandate debt transfer or to introduce debt blocking into the market. It was decided that the debt flagging process would also remain the same at this time, and the possibility to introduce a further flag may be reviewed in the future. 6.3 Pay as You Go Meters PAYG This section looks at the trend in the installation of PAYG financial hardship meters. Suppliers may not disconnect for reasons of non-payment of account unless they have offered a PAYG meter to the customer. In instances where it would not be appropriate to offer a PAYG meter, such as the customer not being able to use the meter or where there is no suitable location for the meter in the premises, the supplier must offer an alternative. The requirements set out in the Codes of Practice ensure that fair and robust customer processes are in place for the installation of such meters. Suppliers are required to offer customers in financial hardship a PAYG meter in the domestic electricity and gas markets prior to taking steps to disconnect. Currently Bord Gáis Energy, Electric Ireland, Energia, Flogas and SSE Airtricity provide PAYG meters for financial hardship in the electricity and gas domestic markets. A number of suppliers also offer lifestyle choice prepayment options in the electricity sector (Electric Ireland, Pinergy and PrePayPower). However the model offered by these suppliers is different as they provide the PAYG unit directly to the customer so that it acts as a budget controller in series with the existing meter. The lifestyle choice prepayment meter is therefore an asset of the supplier rather than the ESBN. In addition, the models provided by such suppliers require customers to pay additional daily service charges (that customers in difficulty availing of free PAYG do not incur). For gas, GNI provides all PAYG meters to customers. If a customer wishes to avail of a lifestyle choice meter in gas they can purchase such from GNI through their supplier. 44

45 ESB Networks and GNI are responsible for installing PAYG meters free of charge for customers in financial difficulty at the request of suppliers (on foot of a customer agreeing to the installation of a meter). The CER will continue to monitor the installation of PAYG financial hardship meters in its quarterly reports. Q Electricity PAYG financial hardship installs Q2 Q3 Q4 Q1 Q Q Q Total Cumulative Installs 47,067 53,042 58,798 62,858 67,010 70,580 73,288 75,177 Total Monthly Installs 5,075 5,975 6,120 4,064 4,152 3,570 2,478 1,889 Table 6.3, Total and cumulative number of electricity PAYG installs for reasons of financial hardship Q Q Gas PAYG Installs Q3 Q Q Q Table 6.4, Total and cumulative number of gas PAYG installs Q Q Total Cumulative Installs 86,597 89,623 91,921 93,399 94,927 97,317 99, ,964 Total Monthly Installs 2,478 3,193 2,597 1,750 1, , % financial hardship 84.58% 91.45% 90.14% 82.63% 87.87% 89.28% 89.11% 78.82% It can be seen from tables 6.3 and 6.4 and figure 6.1 that the total number of monthly PAYG installs by ESBN and GNI decreased between 2014 and Table 6.5 details the electricity PAYG meter installation rate per supplier; in Q Bord Gáis Energy had the highest financial hardship PAYG installation rate, of 0.12%. This was calculated by dividing the number of meter installs per quarter by the number of customers of each supplier per quarter. Table 6.6 details the Gas PAYG financial hardship meter installation rate per supplier; for Q Electric Ireland and SSE Airtricity had the highest installation rate of 0.13%. 45

46 Number of installs Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April ,000 Total number of financial hardship PAYG installs per month Q Q ,000 5,975 6,120 5,000 4,000 3,000 2,000 5,075 2,478 3,193 2,597 4,064 4,152 3,287 1,750 1,896 1,959 2,478 1,625 1,889 Electricity PAYG Installs Gas PAYG Installs 1, Q Q Q Q Q Q Q Q Figure 6.1, total number of electricity and gas PAYG installs per quarter Electricity PAYG financial hardship Install Rate Electric Ireland SSE Airtricity Bord Gáis Energy Energia Q % 0.39% 0.32% - Q % 0.32% 0.31% - Q % 0.18% 0.18% 0.01% Q % 0.20% 0.16% 0.02% Q % 0.19% 0.24% 0.03% Q % 0.13% 0.17% 0.02% Q % 0.11% 0.12% 0.01% Table 6.5, Electricity PAYG Meter Installations Rate Gas PAYG (financial hardship) Install Rate Electric Ireland SSE Airtricity Bord Gáis Energy Flogas Q % 0.65% 0.35% 0.67% Q % 0.56% 0.32% 0.58% Q % 0.66% 0.50% 0.41% Q % 0.45% 0.42% 0.39% Q % 0.26% 0.26% 0.23% Q % 0.16% 0.12% 0.05% Q % 0.29% 0.32% 0.17% Q % 0.24% 0.21% 0.15% Q % 0.13% 0.10% 0.09% Table 6.6, Gas (financial hardship) PAYG Meter Installations Rate 46

47 6.4 Disconnections The disconnection/ de-energisation of a customer s energy supply should always be the last resort and all suppliers are required to offer a payment plan and prepayment solution to customers in advance of proceeding to disconnect. This section analyses trends in disconnections in both electricity and gas. 6.5 Disconnections Total Disconnections of customers for non-payment of account (NPA) declined significantly in 2015 compared to 2014; by 11% in electricity and 12% in gas. The total number of disconnections between Q and Q was 7,783 for electricity and 3,542 for gas. The total number of disconnections for both electricity and gas declined in 2015 as compared to previous years. In the 2015 consumer survey, 83% of domestic electricity customers and 84% of domestic gas customers stated that they pay their bill in full and on time. Total NPA Disconnections Electricity 17,794 17,441 12,391 8,731 7,783 Gas 4,560 7,558 6,279 3,998 3,542 Table 6.7, total (domestic and business) disconnections There are various reasons for this decline in 2015 including the work that was undertaken by all stakeholders in early 2014 that reviewed the market processes, and also the voluntary agreement introduced by most energy suppliers which saw them committing to never disconnect an engaging customer. The requirement placed on suppliers to offer payment plans and financial hardship meters instead of disconnecting customers in the first instance has also benefited those in financial difficulty. While the scale of the decrease is lower between 2014 and 2015 than between 2013 and 2014, the trend is still positive and indicates that the work that was carried out by all stakeholders to reduce the rate of disconnections has had a positive impact. 47

48 Number of disconnections Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April ,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Total (Domestic and Business) NPA disconnections 17,794 17,441 12,391 8,731 7,558 7,783 6,279 4,560 3,998 3, Electricity Gas Figure 6.2, trend in NPA disconnections from Disconnections Electricity Market The CER receives data on electricity disconnections 15 that were completed for nonpayment of account reasons on a monthly basis from ESBN 16. This section analyses the data on validated electricity non-payment of account (NPA) disconnections 17. Total domestic disconnections per supplier Electric Ireland Airtricity Bord Gais Pre Pay Power Energia Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Table 6.9, Total domestic disconnections by supplier, January 2015 December This data has been validated by suppliers in advance of publication. 16 NPA can cover customers in arrears that have been disconnected because they cannot pay due to financial hardship or disconnected customers who choose not to pay debt. Currently such customers cannot be distinguished in the data. This NPA data does not include data on self-disconnections. This data includes disconnections of PAYG customers due to fraud/theft. 17 PrePayPower states that, as a prepay supplier, it only disconnects in situations where they suspect a site of being vacant or in instances of fraud based on an analysis of vend and consumption data. 48

49 From tables 6.8 and 6.9 it can be seen that the majority of disconnections due to NPA were for domestic customers, with Electric Ireland having the largest number of disconnections between Q1-Q Figure 6.3 shows the trend in disconnections for 2015 compared to the trend in installation of PAYG financial hardship meters. Without a PAYG system in place which provides an option for customers facing difficulty in paying their electricity bills, disconnections would be significantly higher. 1,800 1,600 1,400 1,200 1, , Total domestic electricity disconnections compared to PAYG Installs 1, , ,187 1,082 1, Domestic Disconnections PAYG Installs Figure 6.3, Total (Domestic and Business) Electricity Disconnections compared to PAYG financial hardship installs for January 2015 to December 2015 Percentage change in electricity disconnections between 2014 and 2015 Total Domestic Non-Domestic % change between 2013 and % % % % change between 2014 and % % Table 6.10 A more relevant measure of comparing disconnection levels between suppliers is their disconnection rate per 10,000 customers. This takes into account the customer numbers of the suppliers and is an accurate measure of disconnection intensity per supplier. 49

50 Disconnections per 10,000 customers Electric Ireland SSE Airtricity Bord Gáis Energy Prepaypower Energia Q Q Q Q Q Q Q Q % change Q Q % -45% -40% -81% - Table 6.11 Domestic Electricity Disconnections per 10,000 customers Domestic Electricity disconnections per 10,000 customers Electric Ireland SSE Airtricity Bord Gáis Energy Prepaypwer Energia 6.7 Disconnections Gas Market Figure 6.4 There are three types of disconnections 18 in gas: credit locks, disconnect meters (DMs) and street isolations (CTSRs). This section only focuses on the disconnections that were undertaken for non-payment of account (NPA) reasons The CER receives separate data reports on all three from GNI. To determine the disconnections that were completed for non-payment of account reasons (NPA), the CER assumes all credit locks were completed for NPA reasons and sends each supplier the GPRNs that relate to their DMs and CTSRs so that the supplier can identify the remaining NPA disconnections. The CER then add together all the CLs and the NPA identified DMs and CTSRs to derive an estimate for total gas NPA disconnections. 19 This data has been validated by suppliers in advance of publication. 50

51 Bord Gáis Energy Total domestic gas disconnections per supplier SSE Airtricity Flogas Electric Ireland Energia Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Table 6.13, Total domestic disconnections by supplier, January 2015 December 2015 Total Bord Gáis Energy had the highest number of disconnections overall between January and December. Figure 6.5 shows the trend in gas disconnections compared to the trend in installation of PAYG financial hardship meters. The chart indicates that without a PAYG system, disconnections would be higher. Total gas disconnections compared to PAYG installs Domestic Gas Disconnections Gas PAYG (financial hardship) installs 0 Figure 6.5, Total (Domestic and Business) Gas Disconnections compared to PAYG financial hardship installs for January 2015 to August

52 Percentage change in gas disconnections between 2014 and 2015 Total Domestic Non-Domestic % change between 2013 and % -35.3% -52.6% % change between 2014 and % % -6.59% Table 6.14 In analysing the disconnection levels of suppliers, it is important to examine disconnections as a proportion of customer numbers to determine the intensity of disconnections by supplier. The table below shows the domestic disconnection rate per 10,000 customers per supplier over time. Disconnections per 10,000 customers Bord Gáis Energy SSE Airtricity Flogas Electric Ireland Energia Q Q Q Q Q Q Q Q % change Q Q % -54% -47% 147% 39% Table Domestic Gas Disconnections per 10,000 customers Bord Gáis Energy SSE Airtricity Flogas Electric Ireland Energia Figure

53 6.8 Disconnections Vacant premises proxy Anecdotal evidence suggests that a significant number of disconnected properties are in fact vacant. The following section examines proxy data on the level of vacant premises in electricity and gas. Electricity Each month the CER receives proxy data on vacant premises from ESBN. This data provides an estimate of the number of reenergised 20 sites within five weeks of disconnection. Those sites that remain disconnected are assumed to be vacant. 3,500 3,000 Domestic Electricity Disconnections adjusting for PAYG & Vacant Premises 2,500 2,000 1,500 1, Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 Oct-15 Domestic NPA Disconnections Domestic NPA Disconnections less Vacant Disconnections plus PAYG Installs PAYG installs financial hardship Figure 6.6 The figure above shows the trend in disconnections and shows the impact of adjusting the number of disconnections with installed PAYG meters and also taking out the impact of vacant premises. The total number of domestic NPA disconnections is shown in blue in figure 6.6, while the number of disconnections minus the number of sites assumed to be vacant is shown in red. The chart indicates that without a PAYG system, disconnections would be significantly higher. In addition, it can be seen that when proxy figures for vacant sites are removed, disconnections are significantly less. Gas 21 The figure below shows the trend in disconnections and shows the impact of adjusting the number of disconnections with installed PAYG meters and also taking out the impact of vacant premises. The chart indicates that without a PAYG system, 20 Sites may be reenergised with a different supplier 21 There is a longer time period used to measure disconnected vacant sites in gas (6 months) because some gas customers may choose to disconnect gas as it is less of a necessity at particular times of the year (e.g. during the summer). 53

54 disconnections would be higher. In addition, similar to the case in electricity it can be seen that when proxy figures for vacant sites are removed, disconnections are less Domestic Gas Disconnections adjusting for PAYG and Vacant Premises Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Domestic Disconnections Disconnections plus PAYG Installs Domestic Disconnections less Vacant PAYG Installs for financial hardship 6.9 Non-Domestic Disconnections Figure 6.7 There were significantly less disconnections in the non-domestic electricity and gas markets in 2015 overall compared to The level of disconnections remained relatively constant throughout the year. This includes all non-domestic market segments. Total non-domestic electricity disconnections per supplier Bord Gáis Energy Pre Pay Power Energia Pinergy Electric Ireland SSE Airtricity Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Table 6.16, Total non-domestic electricity disconnections, 2015 Tables 6.16 and 6.17 show the total number of non-domestic electricity and gas disconnections for each month and for each supplier across The largest number of non-domestic electricity and gas disconnections occurred in September The total number of non-domestic electricity disconnections for 2015 was 1,447, an increase of 1.83% from The total number of non-domestic gas disconnections was 170, a decrease of 6.59% from

55 Electric Ireland Total non-domestic gas disconnections per supplier Airtricity Bord Gáis Energy Flogas Energia Vayu Total Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Table 6.17, Total non-domestic gas disconnections, Summary Customer Debt and Disconnections Debt flagging has been in operation in the retail market since October PAYG meters continue to be installed, however there were lower numbers of PAYG meters installed in 2015 in both electricity and gas compared to 2014, in line with a reduction in disconnections. Electricity and gas disconnections for non-payment of account are monitored on an ongoing basis by CER. Disconnections of customers for non-payment of account (NPA) declined significantly in 2015 compared to 2014; by 11% in electricity and 12% in gas. There are various reasons for the decline in disconnections including the work that was undertaken by all stakeholders in early 2014 that reviewed the market processes, the move to monthly reporting of disconnections by CER and also the voluntary agreement introduced by most energy suppliers which saw them committing to never disconnect an engaging customer. A number of other actions have been taken to ensure that disconnections continue to be minimised. Suppliers can only pass on 50% of the charge for a disconnection or reconnection for reason of non-payment to a customer experiencing financial hardship. There continues to be stringent obligations on suppliers to make disconnections the last resort. In April 2015 the CER published an audit of supplier s compliance with the code of practice on domestic disconnections and on the code of practice on marketing and signup. While much has been achieved, the CER is of the view that disconnections can reduce further. The CER will continue to monitor trends in disconnections at supplier level and will continue to promote measures that support customers in difficulty. 55

56 7.0 Market Share Consumption and Customer Numbers 7.1 Introduction This section contains market share data for the main electricity and gas suppliers in Ireland. Data is presented in terms of actual customer numbers and consumption (MWhs/GWhs) for 2015 as well as showing the change in percentage share since Electricity Market The electricity market is comprised of four different market segments covering different DUoS groups (distribution use of system groups or DGs) 22 : Domestic market this covers the residential/household end of the market including urban residential customers and rural residential customers that have a connection to the low voltage network. Small-sized business market this covers small businesses with a low voltage non-maximum demand connection. Medium-sized business market this includes unmetered public lighting & other unmetered connections and businesses with a low voltage maximum demand connection. Large energy users (LEU) market this includes businesses connected to the medium voltage, 38kV and 110kV network and those connected to the electricity transmission system. The electricity market comprises a range of both very large and very small suppliers. Those that have at least a 1% MWh share of consumption are reported separately in each specific market. It is worth noting that, in electricity, the others category in some segments includes data on some suppliers that are not necessarily active in the electricity retail market, i.e. they are self-suppliers, or they only have very few sites. The activity of these companies generally does not have a significant impact on overall trends. However, some suppliers not active in the retail market may have only one/two sites but may generate a relatively high proportion of MWhs within the Others category. 7.3 Overall trends in retail electricity Overall, in the electricity market, the total number of customers in 2015 was 2,241,399 and total consumption was 25,072,268 MWhs. This represented an 22 A DUoS charge is a fee that ESB Networks charges to electricity suppliers for use of the electricity distribution system. The amount of DUoS that ESBN charges a supplier for each customer depends on which DUoS Group a customer is classified as, which is based on several factors including the voltage a premises is connected at, the type of meter installed, or if electricity is exported. Source: ESB Networks. 56

57 increase of 0.2% of customer numbers and an increase of consumption by 3.9% overall compared to Electricity Customer Numbers Q Q Q Q % change between 2014 and 2015 Domestic Market 2,025,771 2,026,412 2,028,179 2,030,110 2,030,110 2,024,382 2,020, % Small Business 185, , , , , , , % Medium Business 24,845 24,925 25,081 25,385 25,385 24,742 24, % LEU 1,715 1,728 1,739 1,744 1,744 1,712 1, % Total Market 2,237,681 2,238,292 2,240,018 2,242,300 2,241,399 2,236,317 2,233, % Table 7.1 Electricity Customers Consumption (MWhs) Q Q Q Q % change between 2014 and 2015 Domestic Market 2,393,097 1,913,250 1,893,041 2,242,429 8,441,817 8,261,797 8,505, % Small Business 1,012, , , ,382 3,653,279 3,590,270 3,650, % Medium Business 1,050, ,035 1,002,381 1,053,456 4,079,341 4,060,931 4,111, % LEU 2,126,526 2,227,540 2,280,278 2,263,487 8,897,831 8,222,360 7,935, % Total Market 6,582,503 5,962,219 6,018,792 6,508,754 25,072,268 24,135,358 24,203, % Table 7.2 As shown in table 7.3, there was little change in the level of consumption per customer between 2014 and 2015 in the domestic market and small business segments, however there was a decrease of 2.09% in the Medium Business segment and an increase of 6.23% in the LEU segment. Consumption per customer for 2015 and kwhs/customer kwhs/customer % Change Domestic 4,158 4, % Market Small Business 19,741 19, % Medium Business LEU 160, , % 5,101,967 4,802, % Table

58 7.4 Domestic Electricity Market Overall, in the domestic electricity market, total customer numbers in Q were 2,030,110 and total consumption was 2,242,429 MWhs, compared to 2,024,382 customers and total consumption of 2,222,735 MWhs in Q Domestic Market Share 5.13% 3.58% 1.08% 0.31% % 14.86% 59.59% 4.93% 4.42% 1.14% 0.33% 16.25% 54.71% 18.22% Electric Ireland SSE Airtricity Bord Gáis Energy PrePayPower Energia Pinergy Others (a) Customer Nos (b) MWhs Figure 7.1 Q4 Domestic Electricity market Share Q Electric Ireland Domestic Market % change Q3- % change % change Share Q4 Sites MWhs Sites MWhs Sites MWhs Sites MWhs 1,209,668 1,226,755 SSE Airtricity 313, , % % % % -1.15% -0.89% -2.07% -1.61% -1.78% -2.57% -1.28% -1.23% Bord Gáis Energy 301, , % 0.25% -0.96% -1.10% 1.17% 0.58% PrePayPower 104, , % 0.05% 1.36% 1.53% 0.45% 0.30% Energia 72,677 99, % 0.07% % 1.22% Pinergy 21,972 25, % 0.05% Others 6,255 7, % 0.31% % -0.40% Total 2,030,110 2,242,429 2,024,382 8,261,797 2,030,110 8,441,817 Table 7.4 Number of sites and MWhs per supplier In Q4 2015, Electric Ireland held the greatest market share with 54.71% of total consumption. However, its market share decreased by 1.61% between 2014 and 2015 in terms of consumption and remains below the 60% threshold at which it was deregulated. Bord Gáis Energy gained the most between Q and Q4 2015, with an increase of 0.58% of market share. SSE Airtricity also lost 1.23% of market share by consumption between Q and Q

59 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 SSE Airtricity held the second greatest market share by consumption in Q4 2015, with 18.22%, followed by Bord Gáis Energy with 16.25%, PrePayPower with 4.93%, Energia with 4.42% and Pinergy with 1.14%. The graphs below show the trend in market share from the beginning of 2009 to the end of 2015 in terms of customer numbers and consumption. Electric Ireland s market share decreased between 2009 and 2011 but has remained just above 50% between 2011 and Significant gains have been made over time by Bord Gáis Energy and SSE Airtricity and more recently by PrePayPower and Energia. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic electricity market share trend over time by customer numbers Electric Ireland SSE Airtricity Bord Gáis Energy PrePayPower Energia Others Pinergy Figure % 80% 60% 40% 20% Domestic Electricity market share trend over time by consumption 0% Electric Ireland SSE Airtricity Bord Gáis Energy PrePayPower Energia Others Pinergy Figure

60 7.5 Small-sized business electricity market Overall, in the small-sized business electricity market, total customer numbers in Q were 185,061 and consumption was 949,382 MWhs, compared to 185,481 customers and total consumption of 950,658 MWhs in Q The following graph shows the percentage breakdown by supplier. SME Market Share 20.51% 0.87% 28.72% 1.33% 38.43% Electric Ireland 11.27% 47.14% SSE Airtricity Bord Gáis Energy Energia 11.41% Others 20.21% 20.12% (a) Customer Nos (b) MWhs Figure 7.4 Q4 Small-Sized Business Electricity market Share Q Electric Ireland SSE Airtricity Bord Gáis Energy Small Business Market Share % change Q3-Q4 % change % change Sites MWhs Sites MWhs Sites MWhs Sites MWhs 87, , % -0.29% 0.34% 2.9% -1.92% -1.32% 37, , % 0.26% 1.50% -0.27% 0.42% 0.87% 20, , % 0.16% 0.32% 0.45% 1.85% 2.11% Energia 37, , % -0.45% -2.25% -3.28% -0.97% -2.35% Others 1,612 12, % 0.32% 0.09% 0.20% 0.62% 0.70% Total 185, , ,481 3,590, ,061 3,653,279 Table 7.5 Number of sites and MWhs per supplier In Q4 of 2015, Electric Ireland held the largest market share in the small and medium business market, with 38.43% of the market. EI did however lose 1.32% from This was followed by Energia with 28.72%, SSE Airtricity with 20.12%, and Bord Gáis Energy with 11.41%. The largest decrease in market share in this segment was for Energia, with a loss of 2.35% between Q and Q Bord Gáis Energy gained the most market share in this segment, with an increase of 2.11% between 2014 and

61 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 The graphs below show the market share of each supplier in the small business electricity sector between 2009 and After the business market was fully deregulated in October 2010, Electric Ireland s market share decreased; between 2014 and 2015 it decreased by 1.32% in terms of consumption. In 2015 its market share decreased by 1.32%. Energia initially increase its share of customers and consumption but this has decreased between 2014 and Q by 2.35%. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% SME market share over time by customer numbers Electric Ireland Energia SSE Airtricity Bord Gáis Energy Others Figure % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% SME market share over time by consumption Electric Ireland Energia SSE Airtricity Bord Gáis Energy Others Figure

62 7.6 Medium-Sized Business Electricity Market 23 In the medium sized business market total customer numbers in Q were 25,505 and total consumption was 1,053,456 MWhs, compared to total customer numbers in Q of 24,742 and total consumption of 1,054, 762 MWhs. Medium-Sized Business Electricity Market Share % 0.76% 1.02% 2.41% 1.62% 38.74% Electric Ireland 3.94 % % 59.93% 31.96% 7.46% 17.82% Airtricity Bord Gáis Energy Energia Vayu Others Q Electric Ireland SSE Airtricity (a) Customer Nos (b) MWhs Figure 7.7 Q4 Medium Business Electricity market Share Medium Business 24 % change % change Q3-Q4 % change Market Share 2014 Sites MWhs Sites MWhs Sites MWhs Sites MWhs 15, , % -1.14% 1.07% 2.31% -1.77% 2.98% 2, , % -0.21% -0.15% -2.52% -0.65% -0.98% Bord Gáis , % -0.05% -0.24% -0.03% 0.14% -0.05% Energy Energia 5, , % 0.97% -0.85% -0.12% 1.33% -3.51% Vayu , % -0.17% 0.16% 0.4% 0.08% 0.22% Others , % 0.60% 0.01% -0.04% 0.87% 1.34% Total 25,505 1,053,456 24,742 4,060,931 25,385 4,079,341 Table 7.6 Number of sites and MWhs per supplier In Q Electric Ireland held the greatest market share in the medium business market with 38.74% of the market by consumption. This was followed by Energia with 31.96%, SSE Airtricity with 17.82% and Bord Gáis Energy with 7.46%. Energia lost the most in terms of consumption between 2014 and 2015, with a decrease in 3.51% of market share by consumption, however its customer numbers increased by 1.33%. Electric Ireland gained the most, with an increase of 2.98%. 24 Medium-sized business includes low voltage maximum demand (DG6) and public lighting (DG 3&DG4). 62

63 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 The figures below show the market share trend in terms of customer numbers and MWhs from 2009 to Q in the medium business sector. Electric Ireland experienced a decline in its market share over a number of years following price deregulation of the business market in October 2010, however its market share increased between 2013 and the first part of In the third and fourth quarter of 2015 its market share decreased. Bord Gáis Energy s market share has declined over time, while SSE Airtricity s market share increased following deregulation but decreased in 2014 and In summary, from figures 7.8 and 7.9 we can see a diversification of market share in the medium business market over time. 100% 80% 60% 40% 20% Medium business market share over time by customer numbers 0% Electric Ireland Energia SSE Airtricity Bord Gáis Energy Vayu Others Figure % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Medium business market share over time by consumption Electric Ireland Energia SSE Airtricity Bord Gáis Energy Vayu Others Figure

64 7.7 Large Energy Users (LEUs) Overall, in the LEU electricity market total customer numbers in Q were 1,744 and total consumption was 2,291,271 MWhs, compared to 1,712 customers and total consumption of 2,112,574 MWhs in Q LEU Market Share % 6.14% 2.81% % 3.33% 13.13% 7.22% 45.37% Electric Ireland SSE Airtricity Bord Gáis Energy 6.8% Energia 9.75% Vayu Others % 24.15% (a) Customer Nos (b) MWhs Figure 7.10 Q4 LEU Electricity market Share Q LEU Market Share % change Q3-Q4 % change % change Sites MWhs Sites MWhs Sites MWhs Sites MWhs Electric ,027, % -0.08% Ireland 1.83% 0.24% 1.79% 3.78% SSE Airtricity , % -0.23% 0.64% 1.47% % 0.57% Bord Gáis , % 0.06% 0.28% 0.28% Energy 0.06% -3.89% Energia , % -0.17% 1.17% -0.67% % -3.02% Vayu , % 0.17% 0.82% -0.01% 1.00% 0.16% Others , % 0.25% % -1.31% 1.52% 2.40% Total 1,744 2,263,487 1,712 8,222,360 1,744 8,897,831 Table 7.7 Number of sites and MWhs per supplier The largest market share in terms of consumption in the Large Energy Users market segment was held by Electric Ireland, with 45.37%, followed by SSE Airtricity with 24.15% and Energia with 13.13%. The contracts in this market segment are largely bespoke in nature and arranged separately between suppliers and customers. Electric Ireland had the largest increase in market share between 2014 and 2015, of 3.78%, while Bord Gáis Energy lost the most with a decrease of 3.89% of market share in terms of consumption. 64

65 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 The figures below show the market share in terms of customer numbers and consumption from 2009 to Q SSE Airtricity has experienced gains in terms of customers and consumption since % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% LEU market share over time by customer numbers Electric Ireland Energia SSE Airtricity Bord Gáis Energy Vayu Others Figure % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% LEU market share over time by consumption Electric Ireland Energia SSE Airtricity Bord Gáis Energy Vayu Others Figure Gas Market The gas market is reported as four different market segments: Domestic market this represents non-daily metered (NDM) residential customers. Industrial and commercial (IC) market represents businesses with a supply point capacity of below 3,750kWh and consumption level below 73,000kWh. Fuel variation tariff (FVT) market NDM gas customers with a supply point capacity of above 3,750kWh and consumption level above 73,000kWh. 65

66 Regulated tariff formula (RTF) market annual consumption of between 5.5GWhs and 264 GWhs. This section contains the market share data for all gas suppliers. Data is presented in terms of actual customer numbers and consumption (GWhs) for Q as well as showing the change in percentage share since the previous year. In previous reports, total consumption was reported cumulatively however since Q it has been presented as total consumption per quarter. 7.9 Overall trends in retail gas Domestic Market Q Q Customer Numbers - Gas Market Q Q % change between 2014 and , , , , , , ,692 5% IC 23,457 23,481 23,477 23,740 23,740 23,666 22,946 0% FVT 1,822 1,832 1,849 1,789 1,789 1,814 1,757-1% RTF % Total Gas Market 666, , , , , , ,644 4% Table 7.8 Domestic Market Consumption - Gas Market (GWhs) Q Q Q Q Table 7.9 There has been varied change between the kwhs of consumption per customer in each market segment between 2014 and 2015, however overall consumption has increased in all market segments. Overall, in the gas market, the total number of customers in 2015 was 668,788 and total consumption was 19,760 GWhs. There was a large increase in consumption for the RTF market segment in particular in 2015, due to new connections and meter upgrades in this segment. % change between 2014 and ,287 1, ,085 7,158 6,900 7,818 4% IC ,893 1,724 1,766 10% FVT ,419 2,183 2,248 11% RTF 1,651 1,549 2,954 2,133 8,286 6,329 5,691 31% Total Gas Market 6,547 3,621 4,148 5,444 19,756 19,150 17,523 3% Consumption per customer, kwhs % change between 2014 and 2015 Domestic Market 10,785 11,134-1% IC 73,782 79,739 8% FVT 1,203,418 1,353,270 12% RTF 25,832,653 32,245,136 25% Table

67 7.10 Domestic gas market 25 In the domestic gas market, the total number of customers in Q was 643,002 and total consumption was 2,085 GWhs. Domestic Market Share 5.78% 5.73% 5.52% 5.85% 50.26% 23.02% Bord Gáis Energy 22.97% 51.26% SSE Airtricity Electric Ireland Flogas 14.2% 15.35% Energia (a) Customer Nos (b) GWhs Figure 7.13 Q4 Domestic gas market Share Q Domestic Market Share % change Q3-Q4 %change % change Sites GWhs Sites GWhs Sites GWhs Sites GWhs Bord Gáis Energy 342,832 1, % -0.36% -5.17% -6.73% -0.77% -3.42% SSE Airtricity 94, % -0.46% -0.72% -0.18% -2.40% -2.33% Electric Ireland 153, % 0.29% 2.40% 4.95% 0.27% 1.54% Flogas 38, % 0.19% -0.28% 0.2% 0.94% 0.13% Energia 38, % 0.35% % 4.08% Total 643,002 2, ,762 6, ,808 7,159 Table 7.11 Number of sites and GWhs per supplier In Q4, Bord Gáis Energy held the largest share of the market by customer numbers, with 51.26%. However, it lost the 3.42% of market share between 2014 and 2015, the greatest amount for any supplier in this period. Energia gained the most with an increase of 4.08% of market share by number of customers. The second largest market share in the domestic market was held by Electric Ireland in Q4 2015, with 25 The threshold for deregulation of BGE was 60% of market share based on customer numbers with rebranding of its retail business. Without rebranding its retail business the threshold was 55% with at least three suppliers in the market, of which two are non-bord Gáis Energy suppliers. Each of these must have a market share in excess of 10%; and, customer switching rates in excess of 10% per year. 67

68 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April % by customer numbers, followed by SSE Airtricity with 14.02%, Flogas with 6.11% and Energia with 6.07%. The figures below show the market share trends in terms of customer numbers and GWhs from 2009 to Q There has been a significant change in Bord Gáis Energy s market share over time. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic gas market share over time by customer numbers Bord Gáis Energy SSE Airtricity Electric Ireland Flogas Energia Figure % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic gas market share over time by consumption Bord Gáis Energy SSE Airtricity Electric Ireland Flogas Energia Figure

69 7.11 Industrial and commercial (IC) Gas market In the IC gas market, the total number of customers in Q was 23,740 and total consumption was 546 GWhs. NDM IC Market Share 1.77% 3.48% 20.32% 43.9% 24.91% 36.08% Bord Gáis Energy SSE Airtricity Electric Ireland Flogas 21.61% 7.05% 5.36% 24.73% 4.76% 6.04% Energia Vayu (a) Customer Nos (b) GWhs Figure 7.16 Q4 IC gas market Share Q Bord Gáis Energy NDM IC 26 Market Share % change Q3-Q4 % change % change Sites GWhs Sites GWhs Sites GWhs Sites GWhs 10, % 5.73% -2.85% -4.14% 5.05% 5.28% SSE Airtricity 1, % -1.07% 0.7% 3.75% -4.00% -7.71% Electric Ireland 1, % -0.57% 0.69% 3.16% -0.51% -0.51% Flogas 5, % -5.24% -0.41% -1.10% -3.44% -5.03% Energia 4, % 0.78% 1.94% -1.18% 2.81% 7.68% Vayu % 0.37% -0.07% -0.49% 0.11% 0.29% Total 23, ,666 1,724 23,740 1,893 Table 7.12 Number of sites and GWhs per supplier Bord Gáis Energy held the greatest market share of the IC gas market segment, with 43.9% of total customers. This was followed by Flogas with 21.61%, Energia with 20.32%, Electric Ireland with 7.05%, SSE Airtricity with 5.36% and Vayu with 1.77%. Bord Gáis Energy gained the most in this segment between 2014 and 2015, with an increase in market share by customer numbers of 5.05%. SSE Airtricity lost the most between 2014 and 2015 with a decrease in market share by customer numbers of 4.00%. 26 Non-daily metered industrial and commercial. 69

70 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 The figures below show that market share has changed significantly between Q and Q in terms of customer numbers and consumption. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% IC gas market share over time by customer numbers 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Bord Gáis Energy SSE Airtricity Electric Ireland Flogas Energia Vayu Others Figure 7.17 IC gas market share over time by consumption Bord Gáis Energy SSE Airtricity Electric Ireland Flogas Energia Vayu Figure

71 7.12 Fuel Variation Tariff (FVT) Gas market 27 In the FVT gas market, the total number of customers in Q was 1,789 and total consumption was 2,183 GWhs % 1.23% FVT Market Share 14.85% 1.18% 38.23% 34.12% Bord Gáis Energy SSE Airtricity Flogas 22.53% 21.32% Energia Vayu 20.18% 3.07% 23.97% 4.56% Electric Ireland (a) Customer Nos (b) GWhs Figure 7.19, Q4 FVT gas market Share Q Bord Gáis Energy FVT 28 eligible Market Share Sites GWhs Sites MWhs % 7.38% % change Q3-Q4 % change % change Sites Mwhs Sites MWhs -2.56% -2.74% 10.12% 5.90% SSE Airtricity % -2.39% 1.69% 5.06% % -8.77% Flogas % -4.91% 0.4% 3.01% -4.24% -4.66% Energia % 0.74% 0.21% -4.46% 9.80% 9.27% Vayu % -0.39% -0.27% -1.19% -0.68% -2.42% Electric % -0.43% Ireland -0.04% 0.68% Total 1, ,814 1,724 1,789 1,893 Table 7.13 Number of sites and GWhs per supplier Bord Gáis Energy held the largest market share in Q with 38.23% market share by customer numbers. This was followed by Energia with 22.53% and Flogas with 20.18%. Bord Gáis Energy gained the most between 2014 and 2015 with an increase of 10.12%, while SSE Airtricity lost the most with a decrease in market share by customer numbers of 14.96%. 27 There are no longer regulated business tariffs; however, the reporting structure has been maintained for consistency and to allow for comparison 28 Fuel variation tariff. 71

72 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Electricity and Gas Retail Markets Annual Report 2015 CER 16/XXXXX April 2015 The figures below show the trends in market share from Q to Q in terms of customer numbers and consumption. It can be seen that Bord Gáis Energy s market share has declined significantly over time and market share in the FVT gas segment has become more distributed over time. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FVT market share over time by customer numbers Bord Gáis Energy SSE Airtricity Flogas Energia Vayu Electric Ireland Others 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Figure 7.20 FVT market share over time by consumption Bord Gáis Energy SSE Airtricity Flogas Energia Vayu Electric Ireland Others Figure

73 7.13 Regulated Tariff Formula (RTF) Gas market 29 In the RTF gas market, the total number of customers in Q was 257 and total consumption was 6,329 GWhs. RTF Market Share % % 0.78% % 13.5% 0.14% 11.39% 3.61% 6.84% 50.49% Bord Gáis Energy SSE Airtricity Electric Ireland Gazprom Energia Vayu 1.95% 9.73% % 14.02% Others (a) Customer Nos (b) GWhs Q RTF 30 eligible Market Share Figure 7.22 Q4 RTF gas market Share % change Q3-Q4 % change % change Sites GWhs Sites MWhs Sites MWhs Sites MWhs Bord Gáis 89 1, % -8.72% 0.75% 2.33% 13.00% 30.53% SSE Airtricity % -2.16% -0.55% 0.5% -4.62% -1.86% Electric Ireland % 0.99% 2.97% 8.05% -0.07% -6.32% Gazprom % 0.56% -0.32% -2.3% -2.95% % Energia % 3.23% -1.55% -4.66% -6.00% -6.69% Vayu % 6.05% -1.71% -4% 0.68% -2.28% Others % 0.04% 0.41% 0.08% -0.04% 0.03% Total 257 2, , ,287 Table 7.14 Number of sites and GWhs per supplier In the RTF gas market segment, Bord Gáis Energy held the greatest market share, of 34.63% by customer numbers. This was followed by Energia with 22.57% and Vayu with 19.46%. Bord Gáis Energy made the greatest gains in terms of customer numbers between 2014 and 2015 with an increase of 13%. Electric Ireland lost the most in terms of customer numbers, with a decrease of 7.47%. 29 There are no longer regulated business tariffs, however, the reporting structure has been maintained for consistency and to allow for comparison. 30 Regulated tariff formula. 73