Fossil fuel prices drive cost of electricity up 11%

Bord Gáis Energy Index for September shows gas was the primary driver of increase

Fewer liquefied natural gas deliveries into Europe resulted in a 13 per cent increase in gas prices

Fewer liquefied natural gas deliveries into Europe resulted in a 13 per cent increase in gas prices

 

Rises in oil, gas and coal prices last month led to an 11 per cent increase in electricity prices, according to the latest Bord Gáis Energy Index.

Oil prices continued to recover, up 11 per cent, while lower temperatures and fewer liquefied natural gas (LNG) deliveries into Europe resulted in a 13 per cent increase in gas prices.

Coal rose by 5 per cent and the higher gas prices fed through to an 11 per cent increase in electricity prices.

Bord Gáis Energy energy trader Darragh Crowley said September gas was “the standout category” in terms of price rises.

“This was due to lower temperatures and fewer LNG deliveries into Europe,” he said. “The oil market has restored its faith in OPEC’s ability to drain the world market of the glut of oil that has depressed prices since 2014.

“As we enter the last quarter of the year, we expect energy prices to remain volatile as temperatures drop and geopolitical tensions continue to ratchet higher.”