Drop reported in Irish gas and electricity prices in compared with last year

Business, Life sciences and energy | Tue 27 Oct | Author – Business & Finance
Joanne Daly Vayu
Joanne Daly, senior energy analyst, Vayu

Irish wholesale gas prices are 13% lower on average in October compared with October 2014 and 2% lower compared with last month, according to the latest Wholesale Energy Market Report published by Vayu Energy.

The report states that the year-on-year decrease in prices is due to an oversupplied LNG (liquefied natural gas) market coupled with increased North Sea exports, which are close to three-year highs.

It also pointed to a fall in the value of the euro against the pound sterling over the last year was another major factor.

Irish wholesale gas prices are now 26% lower compared with the average monthly price recorded for October over the previous three years.

Joanne Daly, senior energy analyst, Vayu, said: “With demand expected to be just slightly up on last year’s mild winter and supply looking healthy, it’s difficult to see any upward movement in price being sustained. Wholesale gas prices for the coming months present a picture of a well-supplied and stable system with Norwegian exports on track for a potential annual production record and high levels of LNG supply set to continue.”

The average wholesale price of electricity in the Irish market decreased 17% compared with October 2014. This reduction has been attributed to lower prices for gas, which is the main energy source used to generate electricity in Ireland.