SSE Ireland

400 new jobs 300%

>90% ROI

Greener

40MW

SSE Ireland

Better Energy Supply

600,000gas and electricity

customers

Sustainability

Makingenergy better

to combat climate change

500MW ofRenewable Generation

Ireland’s No.1 renewable electricity

generator and supplier

Public Lighting

Leadersin the maintenance of

300,000 street lights in Ireland

Health Safety andOur People

Striving to be Ireland’ssafest utility

>900employees

1

1000 employees, €1bn investment

Energy Action Fuel Poverty Conference7 February 2012

“Trust is the glue of life.....It's the foundational principle that holds all relationships.” Stephen Covey

David ManningDirector of Corporate AffairsSSE Ireland

3

1. ENERGY TRENDS

2. MANAGING ENERGY COSTS

3. ENERGY AFFORDABILITY

1. ENERGY TRENDS

4

Residential Electricity Prices (€) (band DD all taxes included)

02468

101214161820

2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1

c/kWh

Ireland Euro Area EU 27

Source: SEAI

Electricity prices now at the EU average

Residential Gas Prices (€) (band D2 all taxes included)

0

5

10

15

20

25

2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1

c/kWh

Ireland Euro Area EU 27

Source: SEAI

Gas prices now at the EU average

Benefits of Competition

7Competitive market delivering for consumers

Energy Security in Ireland – 2011 report

8

Source: Dr. Andrew Kelly, AP EnvEcon and Prof. Peter Clinch, UCD

Oil price growth scenarios model

Source: UK Transmission National Grid (Gas)

UK end-user gas price forecast

Ireland must reduce dependence on imported fossil fuels

Impact of Wind Affordability, Security, Decarbonisation

9

Influence of Wind Output on Energy Prices

0

500

1000

1500

2000

2500

3000

00:00 02:00 04:00 06:00 08:00 10:00 12:00 14:00 16:00 18:00 20:00 22:00

time of day

Win

d G

ener

atio

n (M

W)

0

10

20

30

40

50

60

70

80

0 48

SEM

Ene

rgy

Pric

e (€

/MW

h)

Wind 31 Jul Wind 24 Jul Energy price 24th Energy price 31st

High Price

Lower Price

Low Wind

High Wind

Low Wind: 24 July 2009High Wind: 31 July 2009

Affordability:

Security:

Decarbonisation:

Per 1000MW wind installed :263.5 ktoe avoided imports = €88.3m

Per 1000MW wind installed:

1,633,645 tonnes CO2 avoided

Assumptions:Turbine: 3MWCapacity: 35%Speed: 8.5m/s2008 data

Wind energy reduces wholesale electricity prices

2. MANAGING ENERGY COSTS BETTER

10

Managing the cost of energy better

Empowering the customer:

+ Airtricity’s Smarter Energy Card+ Installation of prepayment meters+ Payment plans+ Disconnections

– Persistence of debt hopping– An Post/Department of Social Protection –

Household Budget Scheme– Free Electricity Allowance

11

More support needed for prepayment meters

Smart Technology• Getting the best from assets and energy:

• System operation• Demand side management• Consumer behaviour

• Better informed customer: • CER trial saw 8.8% reduction in peak period

• SMART Meter• Thin versus thick– must ensure effective solution that balances

all risks.

12

SMART technology must effectively address risk

3. ENERGY AFFORDABILITY

13

Reducing Energy Consumption

14

Source: Dimplex

Improving energy affordability means reducing consumption

Airtricity’s approach

• Better Energy• Airtricity Home Energy Services• PAYS - Availability of cheap finance is the

foundation to delivering building retrofit

• Community Fund - >€600,000 annually focused on community energy efficiency projects

• Fuel poor pilot

• Strategic partnerships and investments • Northern Ireland smart homes project

15Low cost finance foundation of PAYS system

Restoring Trust

1. Ensure competition continues to deliver lower energy prices

2. Improve energy affordability by reducing consumption

3. Provide greater support for prepayment meters

4. Deliver Smart Meters that effectively address risk

5. Access to low cost finance to deliver thermal efficiency investment, PAYS

16