Irish wholesale gas prices for December are down 25 per cent compared to this time last year, due to consistently weak demand and strong supplies, according to a new energy report by the utility Vayu.

The monthly Wholesale Market Report compiled by Irish energy supplier Vayu said gas consumption is lower-than-average, with demand currently 11 per cent below seasonal norms due to warmer than expected weather conditions.

Vayu senior energy analyst Joanne Daly said the gas supply outlook remains extremely positive, boosted by increased shipments of liquefied natural gas from major suppliers.

She said Europe is fast becoming a prime market for liquefied natural gas ahead of the usually more expensive Asian gas hubs.

“We’re entering a period of particularly low demand during the festive season as gas consumption tails off among large industrial users and businesses – with Christmas day itself often experiencing the lowest demand for any day in the year,” she added.

She said Russian gas flows to Ukraine have been stable this month and that supplies delivered into Europe via Ukraine are expected to continue this winter without disruption.

According to the report, about 86 per cent of the UK’s storage capacity is taken up, compared to 50 per cent last year. Total storage levels across other major European hubs are above 79 per cent fullness, pointing to very positive inventories entering 2015.

The average wholesale price of electricity so far in December is up 3.5 per cent from November and down 3.7 per cent compared to December last year. Wind generation has accounted for 26 per cent of electricity generated so far in December.