Metered natural gas consumption in February climbed 7.8 per cent compared with the same month last year as wind speeds plummeted and power plants picked up the slack by burning more natural gas to generate electricity.
Central Statistics Office (CSO) data published on Wednesday showed that consumption by non-daily metered customers – mostly small businesses and households who use natural gas for heating purposes – was 19 per cent lower in February compared with February 2022. This coincided with a rise in average temperatures compared with February 2022, the CSO said.
At the same time, natural gas consumption by electricity-generating power plants surged 33 per cent from February 2022 and 17 per cent from the same month in 2021, driving up the overall volume of gas consumed by 7.8 per cent. This coincided with a drop-off in wind speeds compared with February 2022 with wind speeds at Dublin Airport lower on 24 days in February 2023 compared with February 2022.
“The lower wind speeds reduce the amount of electricity that can be generated by wind farms and consequently result in more electricity being generated by power plants,” said Dympna Corry, statistician in the CSO’s environment and climate division.
Electricity, gas and other fuel priced fell 0.9 per cent in the month, the CSO’s February consumer price index previously indicated, while natural gas prices were flat from January in what was a drier and warmer February than average, according to Met Éireann. But over the 12 months to the end of February, household energy prices had climbed by more than 54 per cent with natural gas prices, in particular, up by more than 92 per cent after Russian pipeline flows into Europe were impacted by the war in Ukraine.
European benchmark natural gas prices have, however, retreated in the early part of 2023 due to lower industrial demand across the Continent. Bloomberg reported on Tuesday that energy traders are looking for signs of a pickup amid an almost 50 per cent decline in gas futures prices since the start of the year.
As prices fall, energy companies are facing renewed pressure from Government to bring down bills with Green Party leader Eamon Ryan saying prices need to fall “quicker” amid growing frustrations.
In a statement, a spokeswoman for Mr Ryan told The Irish Times that he had been meeting energy companies on a continuing basis and, while the market is competitive, “he has relayed his frustration, particularly over recent months, with continued high retail prices, considering that wholesale gas prices are significantly lower and falling”.
