Energy prices increase 4% in July

PAMELA NEWENHAM

Irish energy prices rose 4 per cent last month, as wholesale prices for oil, gas, coal and electricity all increased.

Rising UK gas prices and a drop in the volume of electricity produced by wind turbines pushed wholesale Irish electricity prices 7 per cent higher month-on-month, while oil prices increased 3 per cent due falls in US crude stocks and supply concerns.

The volume of electricity produced by wind fell in July due to the exceptionally warm and stable climatic conditions. In the month, wind generated electricity met 5 per cent of Ireland’s electrical needs - the lowest monthly level this year and a reduction from the 10 per cent recorded in June.

Overall, the Bord Gáis Energy Index, which measures wholesale energy prices, increased to 142 in July, but is still two per cent lower than July 2012.

Bord Gáis trader John Heffernan said the events of last winter, when gas supply concerns were raised following the depletion of storage levels amid the prolonged cold snap, seem to be lingering in the memories of traders.

In July, Brent crude oil prices rose 3 per cent, while gas prices increased by 7 per cent due to heightened sensitivity to UK gas supplies as a result of planned and unplanned maintenance of fields and terminals.

Irish wholesale electricity prices jumped by 7 per cent on the back of a 6 per cent rise in UK wholesale gas costs and lower volumes of wind energy.