Wholesale electricity prices fall by over 40%

According to the CSO, the overall Energy Products Index decreased by 36.7% since the end of last year.

Despite other energy providers including Bord Gais parent company, Centrica and Energia recording record high profits, households could be waiting up to two years before they see a significant drop in energy costs, according to leading suppliers.

Wholesale electricity prices fell by 41.4% in January 2023 compared with the previous month, falling year-on-year by 19.5%.

Figures released by the CSO show a sharp decline in wholesale electricity, following a month-on-month price surge of 93% in December 2022. 

Additionally, the statistics office reported that the overall Energy Products Index decreased by 36.7% since the end of last year.

The fall in wholesale prices follows announcements from energy provider, Pinergy that the company would be decreasing their retail prices for households by 7.1%, equating to roughly €183 annually.

Despite other energy providers including Bord Gais parent company, Centrica and Energia recording record high profits, households could be waiting up to two years before they see a significant drop in energy costs, according to leading suppliers.

Speaking to the Irish Examiner last week, a spokesperson for Electric Ireland said that the wait was due to a lag between movements in the wholesale market and movements in retail prices, with the hedging positions of suppliers also further delaying a fall in price.

Despite a notable fall in wholesale electricity, domestic producer prices for manufactured goods saw a year-on-year rise of 8.2% rise in January 2023, with producer prices for exported goods increasing by 3.5%.

Producer prices for food products also rose by 6.2% in the 12 months to January 2023, while the Food Products, Beverages & Tobacco index experienced an increase of 6.1%.

Diary products saw the most significant increases among food products, rising by just under 27%, followed by fruit and vegetables and fish products, increasing by 19% and 17% respectively.

"Producer prices in several food categories were significantly higher in January 2023 compared with the same month in 2022," explained CSO statistician, Jillian Delaney. "Outputs from Irish manufacturers also increased in price in several other categories."

Additionally, wood product prices increased by over 23%, followed by other non-metallic products and beverages, falling by 18% and 10.7% respectively.

Overall, wholesale prices for construction products rose by 0.6% month-on-month, and by 15.5% in the 12 months since January 2022.