Wholesale energy prices fell to levels not seen since the end of 2010 last month, despite the volatility caused by the conflict in Ukraine.

Gas and electricity prices dipped a further 4 per cent in July, according to the latest Bord Gáis Energy Index.

"The drop of 4 per cent in the energy index this month conceals some extreme wholesale gas price volatility that was in the markets this month," said John Heffernan, gas and power trader at Bord Gáis Energy.

"The uncertain backdrop of the conflict in eastern Ukraine and Ukraine's ongoing gas war with Russia has created an uneasy trading environment and, at times, wholesale prices rose dramatically day-on-day in reaction to breaking news."

However, over the month as a whole, prices were 4 per cent lower than in June with the index reading 127.

“Overall supplies of oil and gas remained undisrupted despite the volatile geopolitical environment and the high number of LNG cargoes arriving to Britain ultimately resulted in both electricity and natural gas hitting a four year low,” said Mr Heffernan.

He said there were factors suggesting prices would remain “soft” in the near term, such as healthy stocks, summer weather and gas supplies. However, as colder weather approaches, the possibility of interruption of Russian gas supplies to Europe could see prices rise.