Energy prices below the EU average

CONSUMERS might find it hard to believe but Irish households were still paying less than the EU average on energy costs to the end of last year, according to new analysis.

Bord Gáis has already flagged its intention to increase prices, but according to research by the Sustainable Energy Authority of Ireland, consumers here paid 15% below the EU average for electricity and 31% less for gas.

Charting the fluctuations in energy prices, the SEAI found there were considerable price drops in the first half of last year, following by increases in the latter half of 2010.

From July to December last year, there was a 4.2% rise in electricity prices while gas customers experienced a 6.1% increase in prices in the same time period.

The aggregate fall in electricity and gas prices for businesses was less pronounced than for householders, but there was a similar increase in the second half of the year.

Small to medium business users of gas saw the greatest price increases in the second half of last year at 27%, significantly more than larger business users.

Dr Brian Motherway, chief operations officer at SEAI, said the trends contained in the analysis emphasised the dependence in Ireland on imported fossil fuels at a time of increased volatility in the global market.

He said there was now a need to exploit natural energy resources.

“There is undoubtedly a continuing upward pressure on prices due to our dependence on these imported fuels. This is a cause of concern for both homeowners and businesses.”

Just last week Bord Gáis said its residential electricity prices will be increased by 12% from the beginning of next month, with its residential gas prices to rise from the start of October.