New figures from Bord Gáis show that the energy price index in July is 24% higher than the same time last year and 55% higher than in July 2009.
The Bord Gáis Energy Index rose by 2% in July and now stands at 139, up from 135 in June. The increase is mostly due to a rise in the wholesale price of oil.
Bord Gáis said that economic and geopolitical issues were the main reasons for the increase in oil prices with prices moving higher as a result of strong Chinese demand and the continuing instability in the Middle East.
The oil element of the index is up 5% to 150 with debt issues in the EU and US contributing to uncertainty in oil prices in the latter part of the month.
The natural gas element of the index is down 2% to 180 with lower levels of demand and steady LNG arrivals to the market combining to drag prices lower.
The coal element of the index is up 2% to 147. Prices were little changed due to low summer demand and Bord Gáis said that the week long strike by miners in South Africa had not yet had an effect on European prices.
The index's electricity element is down 2% to 109 with the usual drop in power demand due to the summer weather. Wind generation fell by 25% compared to the previous month.
Michael Kelleher, Bord Gáis energy trading analyst, said he anticipates an increase in the energy index in the fourth quarter of the year with the markets putting more emphasis on increasing demand for oil from China and the likely increase in demand for gas in Germany after its decision to end nuclear power generation there.
'The potential for further unrest in the Middle East is also lending support to higher future oil prices. The futures market also point to wholesale gas price increases with pries for this winter currently more than 30% higher than last winter,' he added.
