Irish firms’ energy costs slashed by up to 18%

Large Irish companies will have seen a reduction of 9% to 18% in their energy costs, this year, a result of a near 30% drop in wholesale gas prices.

The cost of buying natural gas on the wholesale market dropped dramatically in the past year, with independent energy supplier Vayu quoting a 27% reduction in average wholesale prices for 2014, compared to last year in its latest report on the market.

A perfect storm of falling demand (on the back of warmer-than-expected weather conditions and resultant under-usage) and strong supplies has been the main downward driver on prices and Vayu forecasts the positive knock-on effect will continue.