ELECTRICITY DEMAND is falling and wholesale prices have dropped by almost 50 per cent, according to the electricity grid operator, EirGrid.
Chief executive Dermot Byrne said there had been a 4 per cent reduction in the demand for electricity in the first quarter this year compared to 2008.
“We are seeing a softening of demand which began in the latter half of 2008 and has continued in 2009. That reflects the underlying economic conditions.” he said.
Meanwhile wholesale electricity prices are half the cost they were this time last year.
“That reflects a number of things. It reflects the drop in fossil fuel prices and the effectiveness of the single electricity market itself in putting downward pressure on prices,” he added. “We are beginning to see that fall of wholesale prices become reflected in retail prices.”
The State-owned company returned an operating profit of €8.6 million in the nine months to September 2008, compared to €8.8 million during 2007, according to the EirGrid annual accounts for 2008. EirGrid reported on a nine-month basis to bring its financial year in line with the “tariff year” used by the Commission for Energy Regulation to set prices. Mr Byrne said the results were satisfactory.
“2008 was a successful and productive year for EirGrid. We are committed to providing world class service, which will boost competition, renewable energy and economic development,” he said.
