ESB subsidiary Electric Ireland noted that its wholesale energy costs will rise to €2 billion this year, from €300 million in 2020. “Unfortunately we expect this volatility to continue over the coming months given the ongoing uncertainty in the geopolitical situation and international markets,” said the company, adding that it was keeping prices under review.
Energia said it monitored wholesale electricity and gas prices. “Any changes in pricing are carefully considered with updates to customers being a primary focus,” the company added. Energy companies buy the gas used to generate electricity or to supply direct to homes for heating and cooking a year or more in advance on forward markets rather than the more volatile spot market.
Russian state company Gazprom’s move to cut supplies to Europe this summer, sparking accusations that the country was weaponising energy, drove most of the increase in the forward price. That briefly hit a high of 850 cent a therm in August as buyers panicked following predictions of severe shortages next year.