Irish energy supplier Vayu is entering the UK market, targeting business users.

The company said it seeks to supply businesses in the industrial and commercials sectors. It says the UK market is valued, at over £7 billion (€8.6 billion) a year, almost 10 times the size of the sector in Ireland, and offers significant growth potential for Vayu.

"We believe there remains a large untapped opportunity to deliver new services into the UK market," said Vayu's commercial director Liam Faulkner.

He said the company invests heavily in winning customers by offering a flexibility not previously available in the market. “We have . . . a business model that has worked exceptionally well in Ireland, creating flexibility for gas users that wasn’t there previously.”

Established in 2003, Vayu says it supplies 22 per cent of Ireland’s largest natural-gas business users and 15 per cent of the mid-sized gas-user segment.

UK industry veteran Simon Firth will head up the group's UK business.

Vayu's move into the UK market was announced as the latest Bord Gáis Energy Index was unchanged with rising Brent crude oil prices in May being offset by falling wholesale gas and electricity prices.

Oil prices were up 3 per cent on the month in euro terms, pushed higher in part by the euro weakening against the dollar.

Last week's European Central Bank decisions are seen as likely to exacerbate this move over coming months.

Yet, the fundamental driver of oil prices remains tightening supply and expected increase in demand.

While oil supplies are raising concerns, natural gas prices slipped 8 per cent last month with John Heffernan, gas and power trader at Bord Gáis Energy, saying "bumper" supplies last month pushed prices down to levels not seen since late 2010.