Wholesale energy prices were 3% lower in April than a year earlier, according to the Bord Gáis Energy Index, even though they rose overall by 4% that month.
The index stood at 105 in April, up four points since March, but the month was variable in terms of price movement for different products. Oil rose 6% in the month due to throttled production, a rebound in China and tougher US sanctions on Iran.
However, gas prices fell 10% and coal by 16%, and these factors combined to yield a marginal fall in electricity prices from the previous month.
Energy trader Joe Egan (pictured) said: “Gas prices continued to fall as a combination of mild weather, lower demand and strong stable supplies added to bearish momentum. April saw mild temperatures, with average demand five million cubic metres below the seasonal norm. A key driver of the relentless decline in gas prices since October 2018 has been a surge in LNG deliveries to Europe. A total of 2.1 billion cubic metres of LNG was delivered to the UK system, a year-on-year increase of 270%, as weak Asian demand and pricing meant surplus cargoes found their way to Europe."
The average day-ahead price for electricity was €49.41/MWh, a marginal reduction. Wholesale electricity prices typically track the cost of imported gas as it is the most significant cost in the production of electricity. Wind output was down 17% to 1,360MW versus 1,639MW the previous month. The average portion of demand met by wind in April was 32%.
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The full report from Bord Gais Energy is available here.
