EA Ireland

Why Are Customer Bills High?

Gas prices on wholesale markets have increased dramatically through 2021 and 2022 as a result of the Russian invasion of Ukraine and the subsequent conflict as well as economies such as China reopening since Covid. Prior to the summer of 2021 gas prices were about 38p sterling/therm, and by August 2022 the price had reached 642p/therm a rise of over 1,500%.  While gas prices have fallen to 131p/therm (March 2023), the price to buy gas a year from now (March 2024) is 219p/therm (1) so future price uncertainty is still a major issue for  generators, and suppliers, leading to expensive energy far above the historic average.


(1) UK Natural Gas – 2023 Data – 1997-2022 Historical – 2024 Forecast – Price – Quote (tradingeconomics.com)