An increase in pipeline gas supplies has benefited Irish businesses by significantly lowering wholesale energy prices in recent weeks.
Latest available data from leading independent energy supplier, Vayu shows that Irish wholesale gas prices were 8% lower in September compared to the same month last year, although 2% higher than August.
Irish wholesale gas prices are now 21% lower in euro terms than the average monthly price recorded for September in each of the past three years.
This has had an impact on the energy costs of many Irish businesses purchasing gas on the wholesale market, particularly in the industrial and commercial sectors and prices aren’t expected to rise any time soon.
“While gas inventories are significantly down across European hubs, such as the UK and Germany, this is not proving to be a major cause for concern at the moment,” according to Gillian Lawler, senior energy analyst at Vayu, which supplies gas to 20% of Ireland’s industrial and commercial market.
“We’re seeing a flexible supply picture in Europe with strong gas exports from Russia forecast for the fourth quarter, a surge in flows from Norway and a healthy LNG supply line from the Middle East.
"At the current time, it’s difficult to see a significant increase in price short of a weather-related boost in demand.”
Vayu also noted that wind energy accounted for 17% of Ireland’s overall electricity generation this month, with that figure rising to 22% for the year to date.
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