Wholesale gas and electricity prices increased over past year

Wholesale gas prices increased by 30% and electricity prices increased by 10%

David Baker
by David Baker on 5th August, 2015

Irish wholesale gas prices were 30% higher on average in July compared with July 2014, when they reached four-year lows, according to the latest Wholesale Energy Market Report published by Vayu Energy.

Vayu Energy states that the year-on-year increase was due to a weaker euro, higher demand for gas and lower storage levels throughout Europe compared to last year.

Ireland purchases its natural gas from the UK, and due to an 11% fall in the value of the euro against the pound sterling over the last year, euro-equivalent purchases have been more expensive in the UK wholesale gas market.

Read more: Wind energy supplied over 25% of electricity demand

The average wholesale price of electricity in the Irish market for the month of July was 5.24c/kWh – an increase of 5% on the average in June and up 10% compared with July 2014.

This year on year rise can be attributed to higher prices for wholesale gas, which is the main energy source used to generate electricity in Ireland.

During July, wind energy accounted for 23% of overall electricity generation in Ireland.

Some 18,567 gigawatt hours of wind energy has been generated in Ireland since the start of the year, representing 25% of total electricity demand for the country during this period.

Wind generation during the month of July reached a peak of 2,221 MW on the 11th of July when it accounted for 55% of demand at the time.

Start saving: Compare the latest gas and electricity tariffs