Gas Price Hikes Fuel Ireland's Energy Crisis
The energy crisis in Ireland is intensifying as several major energy suppliers announce price hikes for gas and electricity. Bord Gáis Energy, SSE Airtricity, and Energia will increase prices from October, following Pinergy's August hike. Flogas, Yuno Energy, and Electric Ireland had previously raised their charges.
The jump in gas prices is driving the price increases, with the cost of buying replacement contracts for future delivery closely matching current prices. The conflict in the Middle East and Russia's invasion of Ukraine have led to shortages of supplies and increased competition for Asian demand for liquid natural gas (LNG).
The EU's gas stockpiles are at a five-year low, with only 68% full as of this week. The usual summer refill period was disrupted by the exceptionally hot and dry weather, which led to curtailments in electricity generation from nuclear sources.