Wholesale gas prices rise 30% year on year in July

Wholesale gas prices rose at a rate of 30 per cent year on year in July, according to the latest business energy report by Vayu. Prices have climbed after reaching a four-year low in July 2014.

Vayu, which supplies gas to more than 20 per cent of Ireland’s industrial and commercial market, attributed the increase to a weaker euro on currency markets, as well as higher demand for gas and lower storage levels throughout Europe compared with a year ago.

An 11 per cent fall in the value of the euro against sterling over the last year has made euro-equivalent purchases more expensive in the UK wholesale gas market, the source from which Ireland purchases its natural gas.

The report suggests the gas market regularly experienced undersupply in July as a result of a combination of increased demand and restricted flows from Norway due to network maintenance.