A new energy index designed to track movement in the wholesale energy market has been launched by Bord Gáis.
The new monthly index will help consumers and small businesses anticipate future trends in their energy prices.
State company, Bord Gais, yesterday launched the new Energy index, based on the cost of oil, electricity, gas, coal and other fuels, which tracks world market prices for each commodity.
The trends it identifies should aid consumers and businesses in anticipating in what direction costs are going and in clarifying how the energy they pay for is priced.
The index covers four energy commodities - oil, gas, coal and electricity. It will be issued on the second Monday of every month and will track the monthly global price movements of the four commodities by factoring in any currency shift.
The index measures wholesale prices and as such will not have an impact on consumer prices. The price Bord Gais charges consumers is set by the Commission for Energy Regulation.
Speaking at the launch of the Index, energy trading managing director with Bord Gáis Energy, Jason Scagell said the index will allow the company to inform public commentary on energy prices.
"As a small player in the global energy market, Ireland is always going to be affected by the movements of the global market. The Bord Gáis Energy Index will track the global trends in energy prices that will influence the competitiveness of the Irish economy” he said.
The index has set December 31st, 2009 as the baseline date for the index setting prices at close of trading that day at 100 points.
It looks back two years to December 31st, 2007 exposing a peak in June 2008 of 180 points, when oil prices were at record highs, and a low of 80 points in March 2009 as the impact of the global recession hit.
Bord Gais Energy anticipates the index will rise in line with the improving global economic situation. "We can already see a rise to 109 in May from 100 on January 1st.”
