Decrease in Irish energy costs

THE 30%-plus gap between Irish and EU energy costs has narrowed dramatically in some cases, new data reveals.

Sustainable Energy Ireland (SEI) says a new analysis shows “a significant fall in both gas and electricity prices to Irish businesses while many EU states experienced rises”.

The report which covers energy pricing trends for the first half of 2009, shows that while prices to Irish businesses remain above the European average, the gap is closing.

Electricity prices to businesses in Ireland fell by 15% in the first half of 2009 compared with the last six months of 2008.

Against that the average price across the EU increased by 2.2%.

“This has closed the gap in electricity prices between Ireland and the EU as prices fell from 38% above the EU average for medium-sized businesses in the latter half of 2008 to 15% above, for the first half of 2009.”

Gas prices for Irish business continued to fall and in the first half of 2009 by over 15%.

Business sector gas prices in Ireland for the smallest consumers were 13% above the average for EU countries, but were between 7%-10% below the EU average for medium sized gas consumers.

Domestic users have not fared as well, the figures showed. On the residential front, electricity prices rose by almost 15% year-on-year to June 2009.

As a result Irish domestic electricity charges were 22% above the EU average over the period.

When cost of living differences between EU countries are included the SEI said “typical Irish domestic electricity prices were just 4% above the EU average, and were actually below the EU average for higher volume domestic users”.

Again adjusting for cost of living differences, Ireland is cheaper for all domestic gas, ranging from 15% to 30% below the EU average. The SEI said that as energy prices are increasing across Europe, “Ireland is doing well in closing the gap”.

It acknowledged energy prices remain a concern for all consumers, “in particular for businesses trying to maintain economic competitiveness”. It noted also that states, such as Ireland, who are dependent on imported fossil fuels for electricity generation, tend to have higher electricity prices. “This reinforces the importance of diversifying sources of energy in Ireland, particularly into indigenous renewable resources.”

Owen Lewis, chief executive of the SEI, said: “The analysis for the first half of 2009 clearly shows that while energy prices in Ireland remained above the EU average, the gap closed, which is positive news for all energy users and for Ireland as a whole.”