Conflicts keep cost of energy high despite weaker dollar and oil price

The cost of energy fell over the last month but remains higher than at this time last year due to the unrest in the Middle East and North Africa

The Bord Gáis Energy Index fell by 2% in December as eurozone oil buyers benefited from a combination of a weaker US dollar and marginally lower Brent crude oil prices. Lower wholesale Irish electricity prices in December also contributed to a fall in the index. As a result, the Bord Gáis Energy Index now stands at 149, an increase of 4% on Dec 2011.

John Heffernan, power trader at Bord Gáis Energy, said oil had maintained a record high price throughout 2012, but that the controversial practice of hydraulic fracking could drive prices down.