Consumers may face higher energy costs

THERE WERE growing signs yesterday that Irish businesses and consumers are facing increased energy costs.

The Bord Gáis energy index showed that wholesale prices rose by 8 per cent last month, with a weak euro aggravating the impact of increases in the cost of oil, coal and electricity.

Oil price rises, which saw Brent crude top €90 a barrel and US crude reach $89.70, contributed to the overall index increase.

Oil began to climb in New York late yesterday after prices fell earlier in the day. At 7.30pm crude futures for January were being quoted at $89.46 a barrel.

Cold weather pushed up natural gas prices late in November. They were steady for much of the period at between 45p and 47p sterling a therm (the unit in which the fuel is measured) but they rose to 55p as the freeze hit northern Europe.

Wholesale electricity prices increased slightly to €57 per mega watt-hour (MWh) from €55. The arrival of newer, more efficient gas-fired power plants in the system helped ease day-time costs but night-time costs increased.

Demand and production delays drove coal prices higher to $114 a metric tonne.

The Bord Gáis index said that the weak euro exacerbated the impact of energy prices rises on international markets.