New index to track energy prices launched

A new energy index, specific to Ireland and designed to track movement in the wholesale energy market, was launched today.

The Bord Gáis Energy Index, the first of its kind in the Irish market, is made up of four key energy commodities: oil, gas, coal and electricity.

It tracks the monthly global price movements of these commodities factoring in any currency shifts producing an overview and insight into the global energy sector and will be issued on the second Monday of every month.

The index has set has set December 31, 2009 as the baseline date setting prices at the close of trading that day at 100 points.

Publishing its first index today, Bord Gáis Energy said it fell to 109.8 in May, from 111.4 in the previous month.

The decline was due largely to an 8% fall in the price of oil due to continued unease over the sovereign credit problems in Europe and uncertainty surrounding changes to financial regulations in the US, a statement said.

“This significant reduction in oil prices more than offset by rising prices in gas, coal and electricity which were compounded by the weakening of the euro.”

Jason Scagell of Bord Gáis said energy prices “are an important barometer of how the global economy is performing and that has a particular relevance to a small open economy like Ireland”.

“The Bord Gáis Energy Index will track the global trends in energy prices that will influence the competitiveness of the Irish economy.”