Electricity & Gas Prices in Ireland. 2 nd Semester (July December) 2013

Transcription

1 Electricity & Gas Prices in Ireland 2 nd Semester (July December) 2013

2 ENERGY POLICY STATISTICAL SUPPORT UNIT

3 Electricity & Gas Prices in Ireland 2 nd Semester (July December) 2013 Report prepared by Martin Howley & Mary Holland Energy Policy Statistical Support Unit June 2014

4 2 ENERGY POLICY STATISTICAL SUPPORT UNIT Sustainable Energy Authority of Ireland The Sustainable Energy Authority of Ireland was established as Ireland s national energy authority under the Sustainable Energy Act SEAI s mission is to play a leading role in transforming Ireland into a society based on sustainable energy structures, technologies and practices. To fulfil this mission SEAI aims to provide well-timed and informed advice to Government, and deliver a range of programmes efficiently and effectively, while engaging and motivating a wide range of stakeholders and showing continuing flexibility and innovation in all activities. SEAI s actions will help advance Ireland to the vanguard of the global green technology movement, so that Ireland is recognised as a pioneer in the move to decarbonised energy systems. SEAI s key strategic objectives are: Energy efficiency first implementing strong energy efficiency actions that radically reduce energy intensity and usage; Low-carbon energy sources accelerating the development and adoption of technologies to exploit renewable energy sources; Innovation and integration supporting evidence-based responses that engage all actors, supporting innovation and enterprise for our low-carbon future. The Sustainable Energy Authority of Ireland is financed by Ireland s EU Structural Funds Programme co-funded by the Irish Government and the European Union. Energy Policy Statistical Support Unit (EPSSU) SEAI has a lead role in developing and maintaining comprehensive national and sectoral statistics for energy production, transformation and end use. This data is a vital input in meeting international reporting obligations, for advising policymakers and informing investment decisions. Based in Cork, EPSSU is SEAI s specialist statistics team. Its core functions are to: Collect, process and publish energy statistics to support policy analysis and development in line with national needs and international obligations; Conduct statistical and economic analyses of energy services sectors and sustainable energy options; Contribute to the development and promulgation of appropriate sustainability indicators. Sustainable Energy Authority of Ireland Reproduction of the contents is permissible provided the source is acknowledged.

5 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Highlights This report analyses electricity and natural gas price data published by Eurostat, collected for Ireland and other European countries under the methodology for the EU Gas and Electricity Price Transparency Directive 90/377/EEC as amended by Council Decision 2007/394/EC. Since 2008, comparable data for all EU states is published every six months. The focus of this latest report is on the comparative electricity and gas price data for the second semester (July December) of 2013, classified into different customer bands. The report uses updated and revised data from Eurostat. Global Energy Prices There has been significant fluctuation in oil and gas prices since Crude oil prices peaked in July 2008 at $148 per barrel. The average price over the year in 2008 was $97. During the second half of 2013 the average price of a barrel of oil was $110, an increase of 2.2% relative to the first half of During the first semester of 2013 at the UK gas balancing point there was a 7.5% increase in the euro price of gas followed by a 4.6% fall in the second semester. Electricity Price to Business Consumers Electricity prices in Ireland for business customers remained relatively stable during the second half of 2013 with bands IC, ID and IF experiencing increases of just 0.6%, 0.4% and 0.5% respectively. Prices in band IA, IB and IE fell respectively by 3.6%, 0.4% and 1.2% compared with the previous semester. In this semester, the consumption bands ID and IF, representing 33% of the business electricity market in Ireland, disimproved one place each to rank at 5 th and 8 th respectively most expensive in the EU. During the same semester, bands IA, IB and IE improved one place to 8 th, 6 th and 8 th respectively. These bands represented 49% of the business electricity market. Ranking band IC remained the same at 5 th place. Over the 12 months to the end of 2013 prices in bands IC and ID respectively fell by 1.7% and 2.7%, while prices in the EU increased by 2.4% and 1.9% respectively. The larger consumption band I4, which represents 37% of the market, experienced a smaller increase of 3.2%. Prices for gas to business in Ireland ranked above the EU average in all consumption bands, ranging from 2% above in band I1 to 19% above in band I3. Ireland was ranked 4 th most expensive of the EU countries for gas price to business in band I3. It was ranked 8 th in band I1 and 11 th in bands I2 and I4. Electricity Price to Households The price of electricity to households in the second semester of 2013 increased for all levels of consumption, with an average increase of 5.5%. The average increase was 1.3% in the EU and 1.4% in the Euro Area. Ranking in the two main consumption bands DC and DD, which represent 81% of the household electricity market, remained the same as in the previous semester at 4 th and 6 th most expensive. Prices in these bands were 20% and 9% respectively above the EU average. When purchasing power parities are applied, prices in these bands were 11% and 1% above the EU average. Natural Gas Price to Households In the second semester of 2013 natural gas prices to residential customers in Ireland increased by 10.6% for most (94%) consumers. Gas prices to Irish households moved to a position of 2% above the EU average during this semester compared to being at the EU average in the previous semester. Gas prices to residential customers in Ireland remained 8.5% below the Euro Area average. When purchasing power parities are applied, gas prices to Irish households were 5% below the EU average. Natural Gas Price to Business Consumers In the second semester of 2013 natural gas prices to business customers in Ireland increased in all consumption bands compared with the previous semester. The increase in bands I1, I2 and I3, representing 47% of the market, was 11.6% on average.

6 4 ENERGY POLICY STATISTICAL SUPPORT UNIT Overview Business Electricity Prices (ex-vat) 2 nd Semester 2013 Business Electricity Band Share Ireland c/kwh Ireland relative to: Ranking in: Semester price change: EU Euro Area EU (30) Euro Area(17) Ireland EU Euro Area Band IA 7.6% % 92% % 3.3% 3.5% Band IB 33.7% % 106% % 0.8% 1.1% Band IC 17.2% % 109% % -0.9% -0.6% Band ID 28.7% % 103% % -0.2% -0.1% Band IE 8.1% % 105% % 0.1% 0.9% Band IF 4.7% % 109% % -3.2% -3.2% & SEAI Business Gas Prices (ex-vat ) 2 nd Semester 2013 Business Gas Band Share Ireland c/kwh Ireland relative to: Ranking in: Semester price change: EU Euro Area EU (25) Euro Area(14) Ireland EU Euro Area Band I1 9.2% % 98% % 3.4% 3.0% Band I2 15.2% % 99% % -3.0% -4.8% Band I3 22.8% % 115% % -3.1% -4.2% Band I4 37.1% % 103% % -0.9% -0.6% Band I5 15.7% % -4.0% & SEAI Residential Electricity Prices (all taxes included) 2 nd Semester 2013 Household Electricity Band Share Ireland c/kwh Ireland relative to: Ranking in: Semester price change: EU Euro Area EU (30) Euro Area(17) Ireland EU Euro Area Band DA 1.3% % 191% % 1.3% 5.3% Band DB 8.9% % 132% % 1.3% 3.0% Band DC 32.7% % 113% % 0.8% 2.8% Band DD 48.3% % 100% % 1.8% 3.4% Band DE 8.7% % 90% % 1.2% 2.0% & SEAI Residential Gas Prices (all taxes included) 2 nd Semester 2013 Household Band Ireland Ireland relative to: Ranking in: Semester price change: Gas Share c/kwh EU Euro Area EU (25) Euro Area Ireland EU Euro Area (13) Band D1 4.4% % 74% % 16.3% 15.9% Band D2 93.6% % 92% % 8.1% 8.2% Band D3 2.0% % 97% % -0.6% -1.9% & SEAI Note: A ranking of 1 denotes most expensive.

7 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table of Contents Highlights 3 Overview 4 1 Introduction 8 2 Factors Affecting Electricity and Gas Prices in Ireland Global Energy Prices Fuel Mix for Electricity Generation Investment in Electricity and Gas Infrastructure Share of Taxes in the Prices Paid by Consumers in Europe Purchasing Power 18 3 Energy Prices for Business Business Electricity Prices Business Electricity Prices in Consumption Band IB Business Electricity Prices in Consumption Band IC Business Electricity Prices in Consumption Band ID Business Electricity Prices EU Comparison Business Electricity Prices Euro Area Comparison Disaggregation of Business Electricity Prices Business Gas Prices Business Gas Prices in Consumption Band I Business Gas Prices in Consumption Band I Business Gas Prices EU Comparison Business Gas Prices Euro Area Comparison 45 4 Energy Prices for Households Residential Electricity Prices Residential Electricity Prices in Consumption Band DC Residential Electricity Prices in Consumption Band DD Residential Electricity Prices EU Comparison (in ) Residential Electricity Prices EU Comparison (in PPP) Residential Electricity Prices Euro Area Comparison (in ) Disaggregation of Residential Electricity Prices Residential Gas Prices Residential Gas Prices EU Comparison (in ) Residential Gas Prices EU Comparison (in PPP) Residential Gas Prices Euro Area Comparison (in ) 64 References 66 Appendix 1 Electricity & Gas Prices in Ireland 67 Appendix 2 Methodologies for Assessing Prices 68

8 6 ENERGY POLICY STATISTICAL SUPPORT UNIT Table of Figures Figure 1 Crude Oil Price Trend 2007 to January 21 st Figure 2 Exchange Rates 2008 to May 8 th Figure 3 Natural Gas System Average Price (p & c/kwh) (actual day UK balancing point) 2009 to May 6 th Figure 4 Gross Electricity Generation from Fossil Fuels (excl. peat) in Europe (2012) 11 Figure 5 Public Service Obligation Levy cost breakdown Figure 6 Business Electricity Prices (ex-vat) in band IB (2 nd semester 2007 to 2 nd semester 2013) 20 Figure 7 Percentage change (national currency) in business electricity price (band IB) semester and 12 months 22 Figure 8 Business Electricity Prices (ex-vat) in band IB relative to EU and Euro Area 23 Figure 9 Business Electricity Prices (ex-vat) in band IC (2 nd semester 2007 to 2 nd semester 2013) 24 Figure 10 Percentage change (national currency) in business electricity price (band IC) semester and 12 months 26 Figure 11 Business Electricity Prices (ex-vat) in band IC relative to EU and Euro Area 27 Figure 12 Business Electricity Prices (ex-vat) in band ID (2 nd semester 2007 to 2 nd semester 2013) 28 Figure 13 Percentage change (national currency) in business electricity price (band ID) semester and 12 months 30 Figure 14 Business Electricity Prices (ex-vat) in band ID relative to EU and Euro Area 31 Figure 15 Business Electricity Prices (ex-vat) 2 nd Semester Figure 16 Business Gas Prices (ex-vat) in band I3 (2 nd semester 2007 to 2 nd semester 2013) 36 Figure 17 Percentage change (national currency) in business gas price (band I3) semester and 12 months 38 Figure 18 Business Gas Prices (ex-vat) in band I3 relative to EU and Euro Area 39 Figure 19 Business Gas Prices (ex-vat) in band I4 (2 nd semester 2007 to 2 nd semester 2013) 40 Figure 20 Percentage change (national currency) in business gas price (band I4) semester and 12 months 42 Figure 21 Business Gas Prices (ex-vat) in band I3 relative to EU and Euro Area 43 Figure 22 Business Gas Prices (ex-vat) 2 nd Semester Figure 23 Residential Electricity Prices (all taxes included) in band DC (2 nd semester 2007 to 2 nd semester 2013) 47 Figure 24 Percentage change (national currency) in household electricity price (band DC) semester and 12 months 49 Figure 25 Residential Electricity Prices (all taxes included) in band DC relative to EU and Euro Area 50 Figure 26 Residential Electricity Prices (all taxes included) in band DD (2 nd semester 2007 to 2 nd semester 2013) 51 Figure 27 Percentage change (national currency) in household electricity price (band DD) semester and 12 months 53 Figure 28 Residential Electricity Prices (all taxes included) in band DD relative to EU and Euro Area 54 Figure 29 Residential Electricity Prices (all taxes included) 2 nd Semester Figure 30 Residential Gas Prices (all taxes included) in band D2 (2 nd semester 2007 to 2 nd semester 2013) 59 Figure 31 Percentage change (national currency) in household gas price (band D2) semester and 12 months 61 Figure 32 Residential Gas Prices (all taxes included) in band D2 relative to EU and Euro Area 62 Figure 33 Residential Gas Prices (all taxes included) 2 nd Semester

9 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table of Tables Table 1 Percentage of Gross Electricity Generation from Fossil Fuels (excl. peat) in Europe (2012) 12 Table 2 South North Pipeline Tariff 13 Table 3 Interconnectors, Inch and Onshore Tariff 13 Table 4 Electricity Prices and Taxes for Industrial Consumers in band IC (2 nd semester 2013) 15 Table 5 Gas Prices and Taxes for Industrial Consumers in band I3 (2 nd semester 2013) 16 Table 6 Electricity Prices and Taxes for Residential Consumers in band DC (2 nd semester 2013) 17 Table 7 Gas Prices and Taxes for Residential Consumers in band D2 (2 nd semester 2013) 18 Table 8 Categories for Business End Use of Electricity 19 Table 9 Business Electricity Prices in band IB in Europe (S to S2 2013) 21 Table 10 Business Electricity Prices in band IC in Europe (S to S2 2013) 25 Table 11 Business Electricity Prices in band ID in Europe (S to S2 2013) 29 Table 12 Business Electricity Prices (cents) in Ireland (2 nd semester 2013) EU Comparison 31 Table 13 Ireland s Ranking in EU for Business Electricity Prices (ex-vat) 32 Table 14 Business Electricity Prices (cents) (2 nd semester 2013) Euro Area Comparison 33 Table 15 Disaggregated Business Electricity Prices 2 nd Semester Table 16 Categories for Business End Use of Natural Gas 35 Table 17 Business Gas Prices in band I3 in Europe (S to S2 2013) 37 Table 18 Business Gas Prices in band I4 in Europe (S to S2 2013) 41 Table 19 Business Gas Prices in Ireland (2 nd semester 2013) EU Comparison 44 Table 20 Ireland s Ranking in EU for Business Gas Prices (ex-vat) 44 Table 21 Business Gas Prices in Ireland (2 nd semester 2013) Euro Area Comparison 45 Table 22 Categories for Residential End Use of Electricity 46 Table 23 Residential Electricity Prices in band DC in Europe (S to S2 2013) 48 Table 24 Residential Electricity Prices in band DD in Europe (S to S2 2013) 52 Table 25 Residential Electricity Prices (cents) (all taxes included) in Ireland (2 nd semester 2013) EU Comparison 54 Table 26 Ireland s Ranking in EU for Residential Electricity Prices (all taxes included) 55 Table 27 Residential Electricity Prices at Purchasing Power Parity (2 nd Semester 2013) EU Comparison 55 Table 28 Residential Electricity Prices ( ) in Ireland (2 nd semester 2013) Euro Area Comparison 56 Table 29 Disaggregated Residential Electricity Prices 2 nd Semester Table 30 Categories for Residential End Use of Natural Gas 58 Table 31 Residential Gas Prices in band D2 in Europe (S to S2 2013) 60 Table 32 Residential Gas Prices in Ireland (2 nd semester 2013) EU Comparison 62 Table 33 Ireland s Ranking in EU for Residential Gas Prices (all taxes included) 63 Table 34 Residential Gas Prices (Purchasing Power Parity) (2 nd semester 2013) EU Comparison 64 Table 35 Residential Gas Prices in Ireland (2 nd semester 2013) Euro Area Comparison 64 Table 36 Business Electricity Prices 2 nd Semester Table 37 Business Gas Prices 2 nd Semester Table 38 Residential Electricity Prices 2 nd Semester Table 39 Residential Electricity Prices (Purchasing Power Parities) 2 nd Semester Table 40 Residential Gas Prices 2 nd Semester Table 41 Residential Gas Prices (Purchasing Power Parities) 2 nd Semester

10 8 ENERGY POLICY STATISTICAL SUPPORT UNIT 1 Introduction 1 Introduction The fluctuations in energy prices over the past number of years are a key concern for all energy consumers in Ireland, as they impact on the rate of inflation and on competitiveness. Understanding the main contributing factors and the precise impacts of energy price changes is of key importance in developing appropriate, sensible and measured responses from businesses, householders and policymakers. Comparing energy prices in Ireland with those of other EU Member States and elsewhere is a particularly important aspect of any analysis of the impact of price changes and competition. This report seeks to inform that analysis and thereby increase the understanding of energy price changes in Ireland. This report draws on the results of the improved EU methodology for gathering energy price data that came into effect on 1 st January The focus of the report is on the electricity and gas price data gathered under this improved methodology and on the period July December 2013, i.e. the second semester 2013 (S2 2013). Revisions to Eurostat s data have been incorporated into this report. Eurostat data presented in this report are as posted on Eurostat s website 1 on 20 th May An addition to this report is a disaggregation of electricity prices into the components of energy and supply, network costs, and taxes and levies for the second semester of See sections and Charts showing the percentage change in price in the last semester and the last 12 months now show the change in national currency rather than the euro values. This better reflects the actual price inflation in the individual countries as it omits currency fluctuations. The report is structured as follows: Section 2 provides a context for the analysis, touching on global factors affecting energy prices, discussing some characteristics that particularly impact on prices in Ireland. Section 3 focuses on electricity and gas prices paid by industrial and services (business) customers, informing the discussion on impacts of energy price changes for business in Ireland. Section 4 focuses on price changes for residential customers, comparing prices for households in Ireland with those of other EU Member States. Appendix 1 shows the average electricity and natural gas prices in the various consumption bands in Ireland during the 2 nd semester Six separate Annexes are available in pdf from detailing, for the latest five semesters, for all countries and all consumption bands, the electricity and gas price to business and residential consumers. There are separate annexes for gas prices in GJ and kwh. Tables in the Annexes show the ex-tax, ex-vat and all-taxes-included prices for all categories. SEAI acknowledges the co-operation of electricity and gas suppliers in providing the information necessary for Ireland to comply with the European Commission Decision (2007/394/EC) 2 and enabling this analysis to be carried out. This is the thirteenth edition of this report focusing on energy prices. Feedback and comments on the report are welcome and should be addressed by post to the address on the back cover or by to [email protected]. Readers may also be interested in previous statistical analysis related to energy prices carried out by SEAI. The report Energy in Ireland (2013 Report) tracks changes in aggregated energy prices from The report Energy in Industry 2007 assesses the significance of energy costs as a proportion of the overall cost base for business enterprises, drawing on data from the CSO s Census of Industrial Production. Both reports are available from www. seai.ie/statistics Amending Directive 90/377/EEC with regard to the methodology to be applied for the collection of gas and electricity prices charged to business and household end-users.

11 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Factors Affecting Electricity and Gas Prices in Ireland There are a number of factors that influence energy prices in Ireland and how prices here compare with prices elsewhere. These factors include, but are not limited to, imported fuel prices, energy infrastructure investment costs, Ireland s electricity generating fuel mix and non-energy costs that affect energy prices (for example, taxes levied, employment costs, raw material and shipping costs). 2.1 Global Energy Prices The most significant factor affecting energy prices in Ireland is change in global oil prices which have shown dramatic fluctuations in recent years. This has particular effect in Ireland due to our high dependence on oil. In addition there is the knock-on impact that oil prices have on other energy prices, in particular natural gas and as a consequence electricity prices. According to Ireland s energy balance, oil accounts for 57% of Total Final Consumption (TFC) 4 in Ireland, 98% of transport TFC, 33% of residential TFC, 23% of industry TFC, 27% of services TFC and 45% of Ireland s primary energy supply 5. According to EU statistics 6, Ireland s oil dependence (as a proportion of primary energy supply) is the fifth highest in the EU. Figure 1 tracks the nominal crude oil prices 7 over the period As shown in Figure 1, crude oil prices doubled between July 2007 and July During the first semester (S1) of 2008, nominal crude oil prices increased by 39%. After July 2008, there was a sharp decline in the price of crude oil to a low of around $34/barrel in late December Average oil prices rose steadily during the second half of 2010 and peaked at $127/barrel at the start of May During the first half of 2012 the average price of crude oil was $113/barrel and settled back to $110/barrel during the second half of the year. The average price of crude oil fell further to $107/barrel in the first half of 2013 but increased again to an average of $110/barrel during the second half. This compares with an average price in 2008 of $97/barrel and 80/barrel in Electricity and Gas Prices in Ireland Figure 1 Crude Oil Price Trend 2007 to June 2 nd Nominal Prices $/barrel Jul 02, 2007 Jul 02, 2008 Jul 02, 2009 Jul 02, 2010 Jul 02, 2011 Jul 02, 2012 Jul 02, S S S S1 Europe Brent Spot Price FOB ($/Barrel) Source: EIA S S S S S S S S S2 3 For the latest energy balance see 4 Total Final Consumption represents all energy that end users are billed for directly. 5 Primary Energy Supply is the TFC plus primary energy used in transformation (electricity generation, oil refining, peat briquetting, etc.) 6 Eurostat, Energy Statistics Database, (nrg_100a, nrg102a). 7 These prices are daily spot prices of Brent crude oil, which is sourced from the North Sea, and are used as a benchmark to price European, African and Middle Eastern oil that is exported to the West. 8 The Energy Information Administration (EIA) is a statistical agency of the U.S. Department of Energy that publishes price energy data at

12 10 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 2 Exchange Rates 2008 to May 8 th Sterling Dollar 2 Electricity and Gas Prices in Ireland Euro Exchange Rates Source: Central Bank of Ireland Figure 2 tracks exchange rates from 2008 to Economic uncertainty in Europe caused a fall in the value of the euro 9 of approximately 7.8% against the dollar and 7.9% against sterling during the twelve months of the second half of 2011 and the second half of These losses were slightly recouped during 2013 with the Euro value increasing by 5.4% against the dollar and 6.0% against sterling. These currency changes contributed to the changing cost of gas and subsequently electricity in Ireland. Figure 3 Natural Gas System Average Price (p & c/kwh) (actual day UK balancing point) 2009 to June 4 th Sterling Euro c/kwh S S S S S S S S S S2 0 Source: National Grid UK emeu/international/contents.html 9 Central Bank of Ireland, Exchange Rates,

13 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 3 shows the actual day System Average Price for gas at the UK balancing point. This is the average price of all gas traded via the On the Day Commodity Market (OCM) mechanism 10. This illustrates the trend in the wholesale price of gas and the effect of the currency fluctuation on the price paid in Ireland. Since the second half of 2009 the price has been increasing steadily and on average the price in the second half of 2013 was 170% higher than at the end of 2009 in sterling terms and 190% higher in euro terms. More recently, on average between the first semester of 2013 and the second semester of 2013 the price in sterling fell by 5% which corresponds to a euro price decrease of 4.6%. Interestingly between the 1 st January and 4 th June 2014 there has been a 36% fall in the sterling System Average Price at the UK balancing point. 2.2 Fuel Mix for Electricity Generation The fuel mix for electricity generation has a key bearing on the variation in the price of electricity in different countries. This is particularly significant with respect to an electricity fuel mix which relies on internationally traded fuels such as gas, oil and coal. During periods of volatile price movements in these fuels there is a strong knock-on impact on electricity prices. Other factors that affect electricity prices include the level of competition in electricity generation, labour costs, taxation policy and the level of investment in infrastructure (i.e. improving the transmission and distribution networks). Figure 4 and Table 1 show the percentage of electricity generation in Europe that is fossil fuel based (coal, oil & gas) and separately the proportion of electricity generated from gas and oil. Figure 4 Gross Electricity Generation from Fossil Fuels (excl. peat) in Europe (2012) 100% 2 Electricity and Gas Prices in Ireland 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: Based on Eurostat data % Gross electricity generation from coal, oil and gas % Gross electricity generation from oil and gas As highlighted in Table 1, Ireland has close to the highest overall dependency of electricity generation on fossil fuels at 71%, behind the Netherlands at 79%, Cyprus 95% and Malta at 99%. Ireland also has a high dependency on oil and gas generation at 51%. Apart from Malta and Cyprus, only Lithuania, Luxembourg and the Netherlands at 62%, 63% and 55% respectively have higher gas and oil generation dependency than Ireland. Regarding gas dependency in electricity generation, Ireland has the fourth highest share at 50% behind Lithuania, Luxembourg and the Netherlands. 10

14 12 ENERGY POLICY STATISTICAL SUPPORT UNIT Table 1 Percentage of Gross Electricity Generation from Fossil Fuels (excl. peat) in Europe (2012) Austria Belgium Bulgaria Croatia Czech Republic Cyprus Percentage electricity generated from: Coal, Oil & Gas 20% 33% 11% 50% 7% 95% 49% 2% 20% 8% 32% 32% 28% 71% Gas & Oil 14% 29% 5% 29% 1% 95% 15% 2% 10% 5% 14% 32% 28% 51% Gas 13% 28% 5% 24% 1% 0% 14% 1% 10% 4% 12% 22% 27% 50% Denmark Estonia Finland France Germany Greece Hungary Ireland 2 Electricity and Gas Prices in Ireland Percentage electricity generated from: Coal, Oil & Gas 66% 33% 62% 63% 99% 79% 55% 56% 18% 16% 6% 48% 1% 68% 36% Gas & Oil 49% 33% 62% 63% 99% 55% 5% 28% 16% 12% 3% 30% 1% 28% 20% Gas 43% 33% 57% 63% 0% 54% 4% 23% 15% 10% 3% 25% 1% 28% 18% Italy Latvia Lithuania Luxembourg Malta Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden United Kingdom EU Investment in Electricity and Gas Infrastructure Investment in electricity and gas infrastructure assets is a further contributing factor to electricity and gas prices, depending on the level of costs and the extent to which these costs are passed through to final customers. In terms of electricity infrastructure, Ireland relies on an extensive high-voltage transmission network and a medium- and low-voltage distribution network to transport electricity from electricity generation locations to consumers. Rapid growth in electricity demand in Ireland (3.6% per annum average annual growth ) coupled with a long period of significant under-investment in the electricity transmission and distribution networks led to a network investment programme since 2000, in both transmission and distribution networks. The Transmission System Operator (TSO), EirGrid, and Transmission Asset Owner (TAO), ESB Networks, are allowed to recover revenue from the Transmission Use of System (TUoS) customer over the period 2011 to 2015, to cover their costs. The allowed revenues are reviewed annually. For the period , the Commission for Energy Regulation approved an expenditure of 1.45 billion for the transmission system (CER, Decision Paper CER/10/ ) and 2.3 billion for the distribution system (CER, Decision Paper CER/10/ ). According to the CER 13, the transmission average unit price (AUP) for the tariff period of 1 st October 2013 to 30 th September 2014 is estimated to be 1.26 c/kwh, a 9.2% increase from the previous twelve month period. The significant rise in the transmission AUP according to the CER can be attributed mostly to the following factors: the continued ramp-up in transmission capital expenditure so to allow Ireland to meet its 2020 renewables targets ( 330 million in 2014 compared with 313m in 2013, an increase of 5.4%); the continued weak energy throughput growth in the PR3 period, which reflects the current economic climate. It is important to note that the PR3 model of November 2010 (CER/10/102f) assumes energy throughput for the period 2013/2014 of 28,862 GWh. The current forecast for the same period is for 25,650 GWh a 12.5% difference. For the distribution system the AUP for Distribution Use of System charge for the 1 st October 2013 to 30 th September 2014 period is 3.35c/kWh. This is a 2.4% increase relative to the AUP of 3.27c/kWh for the previous twelve month period. The natural gas transmission network in Ireland has been operated by Gaslink since The total transmission network length at the end of 2012 was 2,417 km while that of the distribution networks was 11,131 km. The Irish system has three compressor stations, Beattock and Brighouse Bay in southwest Scotland, and Midleton near Cork. The high pressure transmission network conveys gas from two entry points (at Inch and Moffat) to directly connected customers and distribution networks throughout Ireland, as well as to connected systems at exit points in Scotland (the Scotland-Northern Ireland Pipeline) and the Isle of Man

15 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) The maximum import capacity for the interconnectors is determined by the capability of the compressor stations to deliver high pressure flows into the pipelines. This current limit is 1.24 million cubic metres per hour. According to the latest forecasts from Bord Gáis Éireann s annual report, Ireland s transmission network infrastructure has sufficient capacity to transport the anticipated gas demand to all end consumers into the near future. The current set of revenue controls for the gas transmission and distribution networks (CER/12/196) was published on 23 rd November 2012 and runs until September During the period yearly updates will be completed. The CER directed (CER/13/192) Gaslink to implement the following distribution tariff changes from 1 st October th September Nominal capacity tariff decrease of 1.8% Nominal commodity tariff increase of 4% Nominal overall tariff decrease of 0.4% For the transmission system, the CER directed (CER/13/193) Gaslink to implement the following tariffs from 1 st October th September 2014: Table 2 South North Pipeline Tariff Tariff Element Units South North Pipeline Exit Default Daily Capacity /MWh/per peak day MWh Default Daily Commodity /MWh Table 3 Interconnectors, Inch and Onshore Tariff Tariff Units Interconnectors Inch Onshore Exit Capacity /per peak day MWh Commodity /MWh Electricity and Gas Prices in Ireland 2.4 Share of Taxes in the Prices Paid by Consumers in Europe Another factor that affects the prices paid by consumers is the amount of non-recoverable taxes that are levied on energy. Business can generally recover value-added tax (VAT) but not other taxes including energy taxes, carbon taxes and climate-change levies, so the level of ex-vat taxes is important. Householders cannot generally recover any taxes so the level of total tax levied is important. Table 4 to Table 7 show the level of taxes applicable to assessing price comparisons in Europe for industry and households. In Ireland s case there were no non-recoverable taxes on gas 14 for industry up to the 2 nd semester 2009 but from the 1 st May 2010 carbon tax has been levied. There is a small level of excise duty levied on non-household use of electricity 15 since October The level of VAT levied on households at 11.9% of total price (13.5% VAT is levied on the basic price) is at the lower end compared with the other countries. In addition a Public Service Obligation (PSO) levy is charged to all electricity customers. The PSO levy is designed to support certain peat, gas and renewable generation plant as mandated by Government and approved by the European Commission. The underlying policy objectives are security of energy supply including the use of indigenous fuels and the promotion of renewable energy generation. Figure 5 shows the PSO cost breakdown for the period In the period 2008 to 30 th September 2010 the effective PSO levy was set at zero. This changed for the 2010/2011 period. In that period, peat generation accounted for 50% of the levy, renewables 28%, capacity 9% and other (admin and R-factor correction 16 ) 14%. 14 Emissions trading has resulted in an increase in wholesale electricity prices affecting all customers. The level of increase varies across the EU and depends on the carbon content of fuel mix used in electricity generation and the level of price pass-through to customers. This increase is not explicitly quantified and forms part of the basic electricity price. Emissions trading will also tend to increase the cost of using gas for companies involved in emissions trading. This is not reflected in the basic price nor is it captured in the recoverable or non-recoverable taxes. 15 In accordance with the EU Energy Tax Directive, the Finance Act 2008 introduced excise duty, called electricity tax, on supplies of electricity made on or after 1 October There are two tax rates: 0.50 per megawatt hour (MWh), for electricity supplied for business use; and 1 per MWh, for electricity supplied for non-business use. This is not applied to electricity for residential use. 16 R-factor is the over/under recovery of PSO in the previous period.

16 14 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 5 Public Service Obligation Levy cost breakdown Electricity and Gas Prices in Ireland Millions / / / / /2014 Renewable Energy Peat Capacity (2005) Other Source: Commission for Energy Regulation (CER) Peat accounted for 35% of the positive costs of the total PSO levy shown in Figure 5 for 2013/2014, renewables 20% and capacity 23%. Admin and R-factor correction, grouped as other in Figure 5, accounted for 21%. From 1 st October domestic electricity consumers are charged a flat rate of 3.57 per month for PSO, a 54% increase on the previous year. Small business consumers have a flat rate charge of per month in 2013/2014, a 52% increase on 2012/2013. Medium and large business consumers are being charged at a rate of 1.54 per month per kva of maximum import capacity - up 56% on the previous year. In June 2014 the CER released a proposed decision paper Public Service Obligation Levy 2014/15 (CER14125) 18 which sets out the proposed PSO cost per customer for 2014/2015. It is proposed that from 1 st October 2014 domestic consumers will be charged a flat rate of 5.25, a 47% increase on the current charge. Small business consumers will have a flat rate charge of 18 per month, a 66% increase. Medium and large consumers will have a proposed charge of 2.78 per month per kva of maximum import capacity, an increase of 81%. The CER notes that the proposed increases are due to; Lower wholesale electricity prices. The estimated wholesale electricity price in the all-island Single Electricity Market (SEM) for the 2014/15 period is 58.41/MWh. This is down circa 9% on the 64.28/MWh used to determine the levy for the current PSO period. A lower wholesale price for next year PSO Levy 14/15 Proposed Decision Paper CER/14/125 results in the PSO plants needing more PSO money to cover their allowed costs, to offset the lower money they are predicted to receive from the market. This applies across-the-board for renewables, peat and security of supply plants supported by the PSO. It is the biggest single driver of the rise in the proposed levy. The lower estimated wholesale price for next year is reflective of a trend in recent months in the SEM of lower spot and forward contracting prices, related to lower gas prices; Lower running of Tynagh, a 400 MW gas plant provided with a PSO for security of supply reasons. In recent years the Tynagh plant has being running less in the SEM due to a variety of factors, including more wind generation being available to run instead. As a result, the plant receives lower revenues from the SEM. Under the terms of its PSO, most of its allowed costs are fixed, and so lower SEM running and revenue is largely being compensated for by a higher PSO payment; and, More renewable generation. Overall the amount of renewable generation, mostly wind, estimated to receive the PSO levy next year is 234 MW more than the current year, hence increasing the levy. Table 4 shows the basic price for electricity and the non-recoverable taxes for industrial electricity consumers whose annual consumption is between 500 and 2,000 MWh 19. The Member States are ranked in increasing order of basic price plus non-recoverable taxes. 17 CER (July, 2013), Public Service Obligation 2013/2014 (CER/13/168), 18 Available from 19 Based on business electricity consumption band IC which accounts for 16.4% of business electricity consumption..

17 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) The non-recoverable tax varies from zero for three Member States to 5.99 per 100 kwh in Italy, the latter representing 35% of the ex-vat price of electricity. Non-recoverable tax on electricity to business in Ireland amounted to 0.39 per 100 kwh or 2.8% of the ex-vat price the fifth lowest levels of non-zero non-recoverable tax applied in Europe in percentage terms. The average non-recoverable tax on electricity to business in the EU was 21% and in the Euro Area 27% of the ex-vat price. Table 4 Electricity Prices and Taxes for Industrial Consumers in band IC (2 nd semester 2013) Basic price plus nonrecoverable taxes Basic price Non-recoverable taxes Non-recoverable taxes in per 100 kwh in per 100 kwh as % of ex-vat price Bulgaria % Sweden % Finland % Romania % France % Norway % Poland % Netherlands % Croatia % Slovenia % Estonia % Hungary % Czech Republic % Denmark % Luxembourg % Belgium % Austria % Portugal % Latvia % United Kingdom % Spain % Lithuania % Greece % Slovakia % Ireland % Germany % Italy % Malta % Cyprus % 2 Electricity and Gas Prices in Ireland Euro Area % EU % In the case of gas prices to industrial customers, there is one Member State for which the non-recoverable taxes are zero, as shown in Table 5. These prices relate to gas customers who use between 10,000 and 100,000 GJ (2,800 28,000 MWh) of gas per annum 20. The non-recoverable taxes vary from zero to 1.03 per 100 kwh in Denmark and Finland, the latter representing 22% of the ex-vat price of gas. Non-recoverable tax on gas to business in Ireland amounted to 0.37 per 100 kwh or 7.8% of the ex-vat price. The average non-recoverable tax on gas to business was 7.3% in both the EU and the Euro Area. 20 Based on business gas consumption band I3 which accounts for 23.2% of business gas consumption.

18 16 ENERGY POLICY STATISTICAL SUPPORT UNIT 2 Electricity and Gas Prices in Ireland Table 5 Gas Prices and Taxes for Industrial Consumers in band I3 (2 nd semester 2013) Basic price plus nonrecoverable taxes Basic price Non-recoverable taxes Non-recoverable taxes in per 100 kwh in per 100 kwh as % of ex-vat price Romania % Czech Republic % Belgium % Bulgaria % Estonia % United Kingdom % Netherlands % Poland % Latvia % Italy % Spain % Slovakia % France % Lithuania % Portugal % Croatia % Austria % Luxembourg % Finland % Denmark % Ireland % Slovenia % Hungary % Germany % Greece % Sweden % Euro Area % EU % The level of taxes applied to household electricity prices is significantly higher than that applied to industrial electricity prices, as shown in Table 6. These prices are for customers who use between 2,500 and 5,000 kwh per annum 21. The VAT charges are shown separately from other taxes for the purposes of comparison. There are five Member States listed in Table 6 which apply VAT charges only to residential customers. Total taxes (VAT plus other taxes) vary from 0.85 per 100 kwh (Malta and UK) to per 100 kwh (Denmark), or between 4.7% and 57% of total prices. For Ireland, on average taxes and levies account for 16% of the final electricity prices to household consumers. The average non-recoverable tax on electricity to households in the EU was 31% and in the Euro Area 36% of the ex-vat price. 21 Based on household electricity consumption band DC which accounts for 30.8% of electricity consumption in households.

19 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table 6 Electricity Prices and Taxes for Residential Consumers in band DC (2 nd semester 2013) Other taxes VAT Price including all taxes Basic price (excl. VAT) All taxes in per 100 kwh in per 100 kwh as % of total price Bulgaria % Romania % Hungary % Croatia % Latvia % Estonia % Lithuania % Poland % Czech Republic % Finland % France % Luxembourg % Slovenia % Slovakia % Greece % Malta % Norway % United Kingdom % Netherlands % Austria % Sweden % Spain % Portugal % Belgium % Italy % Ireland % Cyprus % Germany % Denmark % 2 Electricity and Gas Prices in Ireland Euro Area % EU % Table 7 shows the level of taxes applied to gas prices for residential customers within the EU who have an annual consumption of between 5,600 and 56,000 kwh per annum 22. As in the case of electricity, the taxes applied to residential customers generally exceed those applied to industrial customers. For residential customers there are eight Member States that apply zero non-vat tax to gas prices. The amounts of total tax vary from 0.28 per 100 kwh (UK) to 6.27 per 100 kwh (Denmark) or 4.8% to 56% of final residential gas prices. Up to the end of 2009, non-vat taxes were zero in Ireland. However, the carbon tax on natural gas was introduced from 1 st May Carbon tax was initially levied at 3.07/MWh and this has since been increased to 4.10/MWh from 1 st May Total taxes and levies accounted for 17% of the gas price paid by Irish households in the 2 nd semester 2013 (band D2). The average non-recoverable tax on gas to households in the EU was 23% and in the Euro Area 28% of the ex-vat price. 22 Based on household gas consumption band D2 which accounts for 94% of gas consumption in the household sector.

20 18 ENERGY POLICY STATISTICAL SUPPORT UNIT 2 Electricity and Gas Prices in Ireland Table 7 Gas Prices and Taxes for Residential Consumers in band D2 (2 nd semester 2013) Other taxes VAT Price including all taxes Basic price (excl. VAT) All taxes in per 100 kwh in per 100 kwh as % of total price Romania % Hungary % Croatia % Estonia % Latvia % Poland % Bulgaria % Slovakia % Luxembourg % Czech Republic % United Kingdom % Lithuania % Slovenia % Belgium % Germany % Ireland % France % Austria % Netherlands % Greece % Spain % Portugal % Italy % Denmark % Sweden % Euro Area % EU % 2.5 Purchasing Power When comparing prices of goods across countries it is important to not only correct for differences in currencies but also for the differences in income and living standards. This is of particular importance when comparing prices paid by residential consumers. Comparisons using the purchasing power parity method for residential consumers are detailed in sections and A factor affecting gas and electricity prices in a country is the costs associated with labour and services. In wealthier countries the cost of living as well as labour and services costs tend to be higher. For residential consumers, comparing electricity and gas prices on the basis of purchasing power parity is a method that may be used to separate the price differences associated with differences in wealth from those associated with other factors. Purchasing Power Parities (PPPs) are currency conversion rates that convert to a common currency as well as equalising the purchasing power of different currencies. In other words, they seek to eliminate the differences in price levels between countries due to differences in currency exchange rates and in living standards. This purchasing power exchange rate equalises the purchasing power of different currencies in their home countries for a given basket of goods. Using a PPP basis is arguably more useful when comparing differences in living standards on the whole between nations because PPP takes into account the relative cost of living and the inflation rates of different countries, rather than just a nominal gross domestic product (GDP) comparison.

21 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Energy Prices for Business The EU Gas and Electricity Price Transparency Directive refers to gas and electricity prices charged to business endusers, but it recognises that suppliers generally cannot always distinguish between industrial and commercial services users and so accepts that business end-users may include other non-residential users. In essence therefore, business prices refer to non-residential prices. Gas and electricity prices include all charges payable including: energy consumed, network charges, other charges (capacity charges, commercialisation, meter rental, public service obligation, etc), all netted for any rebates or premiums due. Initial connection charges are not included. Prices are recorded as national average prices. 3.1 Business Electricity Prices The prices represent weighted average prices, using the market share of the electricity suppliers surveyed as weighting factors. Arithmetic average prices were provided by Member States only when weighted figures could not be calculated. In either case, Member States are required to ensure that a representative share of the national market is covered in the survey. In Ireland the weighted average price is used and represents the full market. The weighting is based on the volume sold by suppliers. Market shares are based on the quantity of electricity invoiced by electricity suppliers to business end-users. If possible, the market shares are calculated separately for each consumption band. The information used for calculating weighted average prices is managed by Member States, respecting confidentiality rules. In order to ensure confidentiality, data relating to prices are communicated only where there are, in the Member State concerned, at least three end-users in each consumption band. Three levels of prices are provided: Prices excluding taxes and levies, Prices excluding VAT and other recoverable taxes, Prices including all taxes, levies and VAT. 3 Energy Prices for Business Electricity prices are surveyed for the following categories of business end-user: Table 8 Categories for Business End Use of Electricity Annual electricity consumption (MWh) Band share of business electricity Consumption band consumption in Ireland Lowest Highest S Band - IA < % Band - IB 20 < % Band - IC 500 < 2, % Band - ID 2,000 < 20, % Band - IE 20,000 < 70, % Band - IF 70,000 <= 150, % In its December 2011 newsletter 23 the CER notes the doubling of the international cost of gas in the previous two years. With gas accounting for over 56% of the fuel mix for electricity generation in Ireland there was a knock-on effect on electricity prices. The upward pressure on gas prices continued into 2012 and 2013, as shown in Figure 3 causing a knock-on effect on electricity prices. Actual day System Average Price of gas at the UK balancing point was on average 8% higher in euro terms in the second half of 2012 compared with the first half of Compounding this, the rebates on electricity for large energy user (LEUs) in Ireland ended on the 30 th September 2012 which contributed to the higher rates of price increase in the larger consumption bands ID, IE and IF. Actual day System Average Price of gas at the UK balancing point during the first half of 2013 was 7.5% higher than in the second half of More recently, on average between the first semester of 2013 and the second semester of 2013, the price in sterling fell by 5% which corresponds to a euro price decrease of 7.2%. Data and analysis on electricity prices in this section are based on the survey results from the revised Gas & Electricity Price Directive in respect of the second semester of Analysis here is confined to the average electricity price excluding VAT and other recoverable taxes as this is the most relevant for business consumers. Data is presented on the trend in electricity prices since the start of the data collection under the new methodology as well as focusing on the latest semester data and including data revisions published by Eurostat. The prices shown refer to average 23 CER Newsletter, December

22 20 ENERGY POLICY STATISTICAL SUPPORT UNIT prices being charged by suppliers. For individual business customers, the price paid for electricity to a supplier will depend to some extent on the load profile of the customer and may be higher or lower than the average because of this. Data and analysis are provided for three consumption bands, IB, IC and ID. IC is the band typically reported on by Eurostat for international comparison, but as band IB and band ID have market shares of 34% and 29% respectively in Ireland they are analysed here also Business Electricity Prices in Consumption Band IB Figure 6 shows the trend in electricity prices in consumption band IB for Ireland, EU and Euro Area. For reference, band IB accounted for 34% of the electricity use in the business market in Ireland in this semester (see Table 12). The price of electricity to Irish business in this consumption band fell throughout 2009 and 2010 and into the first half of Prices in this band have been increasing since with the exception of a small (0.4%) fall in the second semester of 2013 but were still 19.4% higher at the end of 2013 than the first semester of Figure 6 Business Electricity Prices (ex-vat) in band IB (2 nd semester 2007 to 2 nd semester 2013) Energy Prices for Business c/kwh S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 Ireland Euro Area EU 28 In the second half of 2013 in this band, prices in the EU and Euro Area increased at higher rates (0.8% and 1.1% respectively) while the average price in Ireland fell by 0.4%. This resulted in prices in Ireland moving closer to the EU and Euro Area averages, to 12.6% and 5.5% above respectively during this semester as shown in Figure 6. Price changes in the second semester of 2013 ranged from a 3.8% increase in the United Kingdom to a 10.6% price decrease in Norway. Table 9 shows the ex-vat electricity prices in band IB ( MWh per annum) for the five semesters between the second half of 2011 and the second half of 2013 for all countries in Europe. Also shown is the price change for each country between each subsequent semester and for the most recent 12 months for which data is available. Over the 12 month period from second semester 2012 to second semester 2013 price change varied from a 22% increase in Estonia to a 10.8% decrease in Cyprus. Ireland experienced an increase of 1.8% over the 12 month period. This increase for Ireland compares with a 3.2% increase experienced in Europe and a 4.5% increase in the Euro Area. The price increase in Ireland in the semester was lower than the increase in the EU, and the ranking for price of electricity in this business consumption band (see Table 13) improved by one place from 5 th to 6 th most expensive. Note that the percentage price change shown in Table 9 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these as significant moves in the currency exchange rate with the euro may distort price changes. Percentage changes in national currencies are shown in Figure 7.

23 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Tables for all electricity consumption bands are published in a separate Annex which is available at Table 9 Business Electricity Prices in band IB in Europe (S to S2 2013) Band IB July '11 - Dec '11 Jan '12 - Jun '12 without VAT (c/kwh) July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 S2 '11 - S1 '12 S1 '12 - S2 '12 % change S2 '12 - S1 '13 S S months to S2 '13 Austria % 2.3% 0.8% -0.6% 0.2% Belgium % 2.2% -2.9% -0.9% -3.8% Bulgaria % 14.0% 2.3% -3.8% -1.5% Croatia % 7.0% 0.4% -1.6% -1.2% Cyprus % -10.3% -1.5% -9.4% -10.8% Czech Republic % 0.5% 1.4% -0.5% 0.9% Denmark % 2.3% 3.5% -2.3% 1.2% Estonia % 7.0% 21.2% 0.7% 22.1% Finland % 0.2% 1.7% -0.7% 1.0% France % 0.3% 7.4% 2.4% 10.0% Germany % 0.9% 10.0% 1.9% 12.1% Greece % 2.5% 7.5% 2.4% 10.1% Hungary % 3.8% -4.1% -1.7% -5.7% Ireland % 1.4% 2.2% -0.4% 1.8% Italy % 10.6% -3.7% 2.1% -1.6% Latvia % 1.3% 1.9% 2.4% 4.3% Lithuania % -0.1% 7.6% 0.3% 7.9% Luxembourg % -1.2% -1.3% 0.9% -0.4% Malta % 0.0% 0.0% 0.0% 0.0% Netherlands % -7.7% 10.2% -7.4% 2.0% Norway % -8.2% 13.5% -10.6% 1.5% Poland % 2.3% -1.8% -3.1% -4.8% Portugal % 3.4% 3.2% -2.7% 0.4% Romania % -4.4% 17.1% -7.6% 8.2% Slovakia % -0.9% -2.1% 1.0% -1.1% Slovenia % 0.1% 12.0% -10.0% 0.8% Spain % 1.8% -3.8% 2.2% -1.7% Sweden % -2.3% -1.4% -2.7% -4.1% Turkey % 8.7% -2.8% -11.2% -13.7% United Kingdom % 4.0% -3.7% 3.8% -0.1% Euro Area % 2.8% 3.4% 1.1% 4.5% EU % 2.6% 2.4% 0.8% 3.2% 3 Energy Prices for Business Ireland relative to: Euro Area 108.3% 109.8% 108.3% 107.1% 105.5% EU 114.4% 115.6% 114.1% 114.0% 112.6%

24 22 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 7 Percentage change (national currency) in business electricity price (band IB) semester and 12 months 3 Energy Prices for Business United Kingdom Latvia Greece France Spain Italy Germany Czech Republic Euro Area Slovakia Luxembourg EU 28 Estonia Lithuania Turkey Malta Sweden Ireland Austria Finland Belgium Hungary Croatia Poland Denmark Portugal Bulgaria Norway Romania Netherlands Cyprus Slovenia Estonia Germany Norway Greece France Lithuania Romania United Kingdom Czech Republic Latvia Euro Area EU 28 Netherlands Ireland Denmark Finland Turkey Slovenia Portugal Austria Malta Croatia Luxembourg Hungary Slovakia Sweden Bulgaria Italy Spain Poland Belgium Cyprus -10% -8% -6% -4% -2% 0% 2% 4% 6% % change between S and S % -10% -5% 0% 5% 10% 15% 20% 25% % change in 12 months to S Figure 8 shows the ex-vat price for electricity in Ireland for band IB consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was above the EU average price during the period ranging from a high of 30% above in the second half of 2008 to a low of 3.4% in the first half of During the latest semester prices were 12.6% above the EU average. Prices were also above the Euro Area average for most of the period ranging from 26% above in the second half of 2008 to a low of 1.4% below in the first half of During the latest semester prices were 5.5% above the Euro Area average.

25 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 8 Business Electricity Prices (ex-vat) in band IB relative to EU and Euro Area 130% Index (EU-28/EuroArea = 100) 120% 110% 100% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 90% Source: Based on Eurostat data relative to Euro Area relative to EU 28 3 Energy Prices for Business

26 24 ENERGY POLICY STATISTICAL SUPPORT UNIT Business Electricity Prices in Consumption Band IC Figure 9 shows the trend in electricity prices in consumption band IC for Ireland, EU and Euro Area. For reference, band IC, which is the consumption band normally reported on by Eurostat, accounted for 17.2% of the electricity use in the business market in Ireland in this semester (see Table 12). The price of electricity to Irish business fell throughout 2009 and into the first half of Prices in this band increased since then until the second semester of 2012, when they were 24% higher compared with the first semester of There was a 2.3% decrease in the first half of 2013 and a 0.6% increase in the second half of Figure 9 Business Electricity Prices (ex-vat) in band IC (2 nd semester 2007 to 2 nd semester 2013) c/kwh 8 3 Energy Prices for Business S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 Ireland Euro Area EU 28 In the latest 12 month period electricity prices to business in this consumption band fell by 1.7%. In the EU and Euro Area, electricity prices in the same period increased, rising by 2.4% and 3.7% respectively. This resulted in electricity prices in Ireland moving to 15.8% above the EU average and 8.7% above the Euro Area. Table 10 shows the ex-vat electricity prices in band IC ( MWh per annum) for the five semesters between the second half of 2011 and the second half of 2013 for all countries in Europe. Also shown is the price change for each country between each subsequent semester and for the most recent 12 months for which data is available. Price change in the second semester of 2013 ranged from a 2.7% increase in the UK to a 11% price decrease in France. Ireland experienced a 0.6% increase in the semester. Europe as a whole experienced a 0.9% decrease in the second half of 2013 and the Euro Area a 0.6% decrease. Over the 12 month period from second semester 2012 to second semester 2013 price change varied from a 18.6% increase in Estonia to a 14% decrease in Cyprus. Ireland experienced an decrease of 1.7% over the 12 month period. This decrease for Ireland compares with a 2.4% increase experienced in Europe and a 3.7% increase in the Euro Area. Ireland s ranking for price of electricity in this business consumption band (see Table 13) in the second half of 2013, remained at the 5 th most expensive. Note that the percentage price change shown in Table 10 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these as significant moves in the currency exchange rate with the euro may distort price changes. Percentage changes in national currencies are shown in Figure 10. Tables for all electricity consumption bands are published in a separate Annex which is available at

27 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table 10 Business Electricity Prices in band IC in Europe (S to S2 2013) Band IC July '11 - Dec '11 Jan '12 - Jun '12 without VAT (c/kwh) July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 S2 '11 - S1 '12 S1 '12 - S2 '12 % change S S1 13 S S months to S2 '13 Austria % 1.3% -0.4% -0.6% -1.0% Belgium % 2.9% -2.6% 1.9% -0.7% Bulgaria % 11.8% 4.8% -10.7% -6.4% Croatia % 4.6% 1.0% -0.5% 0.4% Cyprus % 4.6% -11.3% -3.1% -14.0% Czech Republic % -1.0% -0.6% -3.2% -3.8% Denmark % 2.8% 3.4% -2.8% 0.5% Estonia % 4.3% 19.1% -0.4% 18.6% Finland % -1.5% 0.7% 0.0% 0.7% France % -17.0% 21.6% -11.0% 8.2% Germany % 1.6% 9.9% 1.3% 11.3% Greece % 3.3% 2.1% -0.7% 1.4% Hungary % 5.4% -3.6% 1.8% -1.9% Ireland % 6.0% -2.3% 0.6% -1.7% Italy % 7.9% -5.5% 2.3% -3.4% Latvia % 0.6% 1.4% 2.4% 3.8% Lithuania % 0.4% 7.6% -0.3% 7.3% Luxembourg % -3.5% -3.0% 1.8% -1.2% Malta % 0.0% 0.0% 0.0% 0.0% Netherlands % -0.1% -0.4% -2.3% -2.7% Norway % -6.9% 12.4% -10.4% 0.7% Poland % 4.3% -2.6% -5.7% -8.2% Portugal % 0.3% 0.4% -1.3% -0.9% Romania % -8.3% 18.3% -9.3% 7.3% Slovakia % -3.4% 1.2% -1.3% -0.2% Slovenia % -0.7% 2.8% -2.3% 0.4% Spain % -1.5% 2.3% -1.8% 0.5% Sweden % -4.1% 3.6% -7.1% -3.7% Turkey % 10.7% -3.1% -12.0% -14.8% United Kingdom % 4.4% -2.3% 2.7% 0.3% Euro Area % 0.2% 4.3% -0.6% 3.7% EU % 0.6% 3.4% -0.9% 2.4% 3 Energy Prices for Business Ireland relative to: Euro Area 109.9% 108.5% 114.7% 107.5% 108.7% EU 115.9% 114.5% 120.7% 114.0% 115.8%

28 26 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 10 Percentage change (national currency) in business electricity price (band IC) semester and 12 months 3 Energy Prices for Business Latvia United Kingdom Hungary Italy Belgium Luxembourg Germany Ireland Malta Finland Croatia Lithuania Estonia Euro Area Austria Greece Turkey EU 28 Czech Republic Portugal Slovakia Spain Slovenia Netherlands Denmark Cyprus Norway Sweden Poland Romania Bulgaria France Estonia Germany Norway France Lithuania United Kingdom Romania Latvia Euro Area Hungary EU 28 Croatia Greece Finland Czech Republic Denmark Spain Slovenia Malta Slovakia Turkey Belgium Portugal Austria Sweden Luxembourg Ireland Netherlands Italy Poland Bulgaria Cyprus -15% -10% -5% 0% 5% -15% -10% -5% 0% 5% 10% 15% 20% % change between S and S % change in 12 months to S Figure 11 shows the ex-vat price for electricity in Ireland for band IC consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was above the EU average price during the period ranging from a high of 38% above in the second half of 2008 to a low of 4.8% in the first half of During the latest semester prices were 15.8% above the EU average. Prices were also above the Euro Area average for most of the period ranging from 36% above in the second half of 2008 to a low of 0.1% below in the first half of During the latest semester prices were 8.7% above the Euro Area average.

29 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 11 Business Electricity Prices (ex-vat) in band IC relative to EU and Euro Area 140% Index (EU-28/EuroArea = 100) 130% 120% 110% 100% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 90% Source: Based on Eurostat data relative to Euro Area relative to EU Business Electricity Prices in Consumption Band ID Figure 12 shows the trend in electricity prices in consumption band ID for Ireland, EU and Euro Area. The price of electricity to Irish business fell throughout 2009 and into the first half of The price in this band increased since then until the end of 2012 when it was 43% higher than the start of The price in band ID decreased by 3.1% during the first half of 2013 but increased by 0.4% during the second half of During the second half of 2013 prices decreased in the EU and Euro Area by 0.2% and 0.1% respectively. For reference, band ID accounted for 29% of the electricity use in the business market in Ireland during the second half of In October 2008, the Commission for Energy Regulation announced 24 that there would be a rebate, amounting to million or cent/kwh, to be applied for all electricity customers over the first nine months of In July 2009, in response to concern about the impact of relatively high energy prices on large energy users (LEUs), the Government decided to continue this rebate for large LEUs only on a temporary basis and at a declining rate and the rebate ended, as it was scheduled to, on 30 September LEUs are those users connected at between 10 and 110kV. The impact of the rebate is reflected in the price trend for business electricity customers in bands ID, IE and IF during the second semester of Energy Prices for Business 24 Full details are available at

30 28 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 12 Business Electricity Prices (ex-vat) in band ID (2 nd semester 2007 to 2 nd semester 2013) c/kwh S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 3 Energy Prices for Business Ireland Euro Area EU 28 As can be seen in Figure 12, the electricity price to business was increasing from 2007 until the end of This coincided with the rise in global energy prices shown in Figure 1. From the start of 2009 the price of electricity in this band fell steadily while at the same time average prices in the EU and the Euro Area were relatively stable. This resulted in prices to business in this consumption band being 8.1% below the EU average and 11.1% below the Euro Area average in the first half of Prices in this band in Ireland continued increasing until the second half of 2012 when they rose at a faster rate (15.2%) than in the EU (0.3%) which pushed Irish prices above both the EU and Euro Area averages. There was a reversal in this trend in the first semester of 2013 when prices fell by 3.1% in band ID but started to rise again in the second semester 2013 by 0.4%. Prices in the second half of 2013 fell in the EU and in the Euro Area. Irish prices were above the EU and Euro Area averages by 9.3% and 3% respectively. Table 11 shows the ex-vat electricity prices in band ID (2,000 20,000 MWh per annum) for the five semesters between the second half of 2011 and the second half of 2013 for all countries in Europe. Also shown is the price change for each country between the semesters and for the latest 12 months. Price change in the second semester of 2013 ranged from a 7.3% increase in Belgium to a 14.3% price decrease in Turkey. Ireland experienced a 0.4% increase in the semester and a 2.7% decrease for the 12 months to December Europe as a whole and the Euro Area experienced a 0.2% and 0.1% decrease respectively in the second half of 2013, both lower than the 0.4% increase in Ireland. Over the 12 month period from the second semester 2012 to the second semester 2013 price changes varied from an 11.4% increase in Estonia to a 14.2% decrease in Cyprus. Ireland experienced an decrease of 2.7% over the 12 month period. The decrease in band ID for Ireland compares with an average 1.9% increase experienced in Europe and an average 2.9% increase in the Euro Area. The picture for the larger consumption band IE in the second semester of 2012 was impacted due to the more immediate effect that higher gas price has on the electricity price for larger consumers and the ending of the Large Energy User Rebate at the end of September Prices peaked during second half of 2012 with Ireland experiencing a 17.3% increase compared with a 2.6% increase in the EU and a 3% increase in the Euro Area. Prices fell since by 4.1% in the first semester of 2013 and a further 1.2% in the second semester 2013 which resulted in prices moving closer to the EU and Euro Area averages at 9.1% and 4.7% above respectively. Note that the percentage price change shown in Table 11 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these as significant moves in the currency exchange rate with the euro may distort price changes. Figure 13 shows graphically the percentage change in national currencies, arranged in increasing order of price change. Tables for all electricity consumption bands are published in a separate Annex which is available at

31 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table 11 Business Electricity Prices in band ID in Europe (S to S2 2013) Band ID July '11 - Dec '11 Jan '12 - Jun '12 without VAT (c/kwh) July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 S2 '11 - S1 '12 S1 '12 - S2 '12 % change S S1 13 S S months to S2 '13 Austria % 0.2% -0.4% -0.3% -0.7% Belgium % -3.0% -3.9% 7.3% 3.1% Bulgaria % 10.1% 0.4% -10.1% -9.7% Croatia % 6.2% 1.0% -1.5% -0.5% Cyprus % 5.5% -11.7% -2.8% -14.2% Czech Republic % 0.3% 0.0% -1.7% -1.7% Denmark % 2.8% 3.5% -2.9% 0.5% Estonia % 4.7% 12.3% -0.8% 11.4% Finland % -0.3% -0.8% 0.7% -0.1% France % -14.3% 19.1% -10.4% 6.8% Germany % 2.1% 9.3% -0.4% 8.9% Greece % 3.6% 0.8% 0.2% 1.0% Hungary % 5.3% -2.9% 2.6% -0.4% Ireland % 15.2% -3.1% 0.4% -2.7% Italy % 3.0% -8.4% 3.5% -5.2% Latvia % 1.0% 4.4% 2.0% 6.5% Lithuania % -0.1% 10.6% -4.5% 5.6% Luxembourg % 7.6% -5.6% -3.1% -8.5% Malta % 0.0% 0.0% 0.0% 0.0% Netherlands % 1.9% 0.7% -3.9% -3.3% Norway % -6.3% 13.4% -9.6% 2.4% Poland % 3.8% -5.8% -5.4% -10.9% Portugal % -1.4% 0.1% -1.5% -1.4% Romania % -8.2% 13.6% -7.2% 5.4% Slovakia % -4.8% 2.1% -2.9% -0.9% Slovenia % 0.5% 2.2% -2.5% -0.4% Spain % -1.2% 4.3% 3.3% 7.7% Sweden % -5.6% 2.5% -2.6% -0.1% Turkey % 13.4% 1.7% -14.3% -12.9% United Kingdom % 5.3% -2.5% 4.0% 1.4% Euro Area % -0.3% 3.0% -0.1% 2.9% EU % 0.3% 2.1% -0.2% 1.9% 3 Energy Prices for Business Ireland relative to: Euro Area 94.7% 94.3% 108.9% 102.5% 103.0% EU % 99.6% 114.4% 108.6% 109.3%

32 30 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 13 Percentage change (national currency) in business electricity price (band ID) semester and 12 months 3 Energy Prices for Business Belgium United Kingdom Italy Spain Hungary Latvia Finland Ireland Czech Republic Greece Sweden Malta Euro Area EU 28 Austria Germany Estonia Croatia Portugal Slovenia Norway Cyprus Slovakia Denmark Luxembourg Turkey Netherlands Poland Lithuania Romania Bulgaria France -15% -10% -5% 0% 5% 10% Norway Estonia Germany Spain Latvia United Kingdom France Lithuania Hungary Romania Belgium Euro Area Sweden Czech Republic EU 28 Turkey Greece Denmark Croatia Malta Finland Slovenia Austria Slovakia Portugal Ireland Netherlands Italy Luxembourg Poland Bulgaria Cyprus -15% -10% -5% 0% 5% 10% 15% % change between S and S % change in 12 months to S Figure 14 shows the ex-vat price for electricity in Ireland for band ID consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was above the EU average price from the second half of 2007 to the second half of 2009 and again since the second half of Price relative to the EU ranged from a high of 38% above in the second half of 2008 to a low of 9.9% below in the first half of During the latest semester prices were 9.3% above the EU average. The trend for the Euro Area average was similar to the EU trend with price ranging from 35% above in the second half of 2008 to a low of 13.6% below in the first half of During the latest semester prices were 3% above the Euro Area average.

33 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 14 Business Electricity Prices (ex-vat) in band ID relative to EU and Euro Area 140% 130% Index (EU-28/EuroArea = 100) 120% 110% 100% 90% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 80% Source: Based on Eurostat data relative to Euro Area relative to EU Business Electricity Prices EU Comparison Table 12 shows Ireland s position, relative to the EU average electricity prices to business for the second semester 2013 with the first semester 2013 shown in grey. Also shown in Table 12 are the market shares by volume of each band. 3 Energy Prices for Business Table 12 Business Electricity Prices (cents) in Ireland (2 nd semester 2013) EU Comparison Electricity prices to business consumers (excluding VAT) Price c/kwh % change since last semester Relative to EU average 2013-S2 Relative to EU average 2013-S1 Band share of market Band IA % 99% 106% 7.6% Band IB % 113% 114% 33.7% Band IC % 116% 114% 17.2% Band ID % 109% 109% 28.7% Band IE % 109% 111% 8.1% Band IF % 110% 106% 4.7% The change in the price of electricity to business in Ireland in this semester ranged from a decrease of 3.6% in band IA to an increase of 0.6% in band IC. The ex-vat prices for business in Ireland are 1% below the EU average in band IA but above for all other consumption levels, ranging from 9% above in bands ID and IE to 16% above in band IC. In terms of market share, band IB is the most significant, accounting for 34% of the business electricity market followed by band ID on 29%. When reporting on electricity prices for Europe, Eurostat normally uses band IC to report and compare prices between countries. This consumption band has a 17% share of the Irish business electricity market. Figure 15 shows graphically the position of the ex-vat electricity price to business during the second semester of 2013.

34 32 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 15 Business Electricity Prices (ex-vat) 2 nd Semester c/kwh Energy Prices for Business 0 Band IA Band IB Band IC Band ID Band IE Band IF Ireland Euro Area EU 28 Table 13 shows Ireland s ranking in the EU for the ex-vat price paid by business for electricity over the time period ranging from the second semester of 2010 to the second semester A ranking of 1 means the most expensive. The bottom row of the table shows the number of countries on which the ranking is based. Table 13 should also be read in conjunction with the market share of each band as shown in Table 12. Table 13 Ireland s Ranking in EU for Business Electricity Prices (ex-vat) Ranking of electricity prices to business consumers (ex-vat) July 10 - Dec 10 Jan 11 - Jun 11 July 11 - Dec 11 Jan 12 - Jun 12 July 12 - Dec 12 Jan 13 - Jun 13 July 13 - Dec 13 Band IA Band IB Band IC Band ID Band IE Band IF No. of Countries While Ireland in 2007 had the second most expensive price for electricity paid by business in the EU, that is no longer the case. Ireland s ranking improved in almost all consumption bands since the second half of until the second semester of 2010 when it dipped in some bands but regained some improvement in the first semester of In the latest semester, the consumption bands ID and IF, representing 33% of the business electricity market in Ireland, dropped one place each and were ranked at 5 th and 8 th respectively most expensive in the EU. During the same semester, bands IA, IB and IE improved one place to 8 th 6 th and 8 th respectively. These bands represented 49% of the business electricity market. Ranking remained the same for bands IC at 5 th place Business Electricity Prices Euro Area Comparison Among the Euro Area countries, business electricity prices in Ireland for the second half of 2013 were above the average for all bands except IA were it was 1% below. For bands IB to IF prices in Ireland ranged from 3% above in band ID to 9% above in bands IC and IF. 25 SEAI (November, 2010), Electricity & Gas Prices in Ireland 1 st Semester (January June) 2010, Publications/Electricity_and_Gas_Prices/Electricity_and_Gas_Prices_in_Ireland_january_to_june.pdf.

35 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table 14 Business Electricity Prices (cents) (2 nd semester 2013) Euro Area Comparison Electricity prices to business consumers (excluding VAT) Price c/kwh Relative to Euro Area average S2 Relative to Euro Area average S1 Band IA (Consumption < 20 MWh) % 99% Band IB (20 MWh < Consumption < 500 MWh) % 107% Band IC (500 MWh < Consumption < 2,000 MWh) % 107% Band ID (2,000 MWh < Consumption < 20,000 MWh) % 102% Band IE (20,000 MWh < Consumption < 70,000 MWh) % 107% Band IF (70,000 MWh < Consumption < 150,000 MWh) % 105% 3 Energy Prices for Business

36 34 ENERGY POLICY STATISTICAL SUPPORT UNIT Disaggregation of Business Electricity Prices Once a year Eurostat collects a disaggregation of electricity prices from Member States, breaking the average price in each consumption band into its components of energy and supply, network costs and taxes and levies. Table 15 shows the disaggregation of electricity price to business in consumption band IC for the second semester of 2013 sorted by the share of energy and supply in the ex-tax price. With reference to Table 15, the energy and supply component in Ireland was 9.1 c/kwh out of the 13.7 c/kwh total price. This represented 68% of the price exclusive of all taxes and was the 5 th highest in absolute terms and 15 th highest as a share of the ex-tax price out of 29 countries. Network costs accounted for 32% of the ex-tax price or 4.3 c/kwh in absolute terms. This was the 4 th highest in absolute terms and 18 th in terms of the share of ex-tax price. Comparing Table 15 with Table 1 there is a strong correlation between countries that have in excess of around 40% of gross electricity generation from oil and gas and a high proportion, greater than 70%, of the ex-tax price accounted for by energy and supply. 3 Energy Prices for Business Table 15 Disaggregated Business Electricity Prices 2 nd Semester 2013 Disaggregate price in c/kwh Share in ex-tax price % Country Total Price Energy & Network Costs Non-Recoverable Energy & Network Costs Supply Taxes & Levies Supply Malta % 12.2% Cyprus % 13.5% Spain % 14.5% Greece % 14.6% Italy % 17.2% France % 24.4% Bulgaria % 24.6% Luxembourg % 25.6% United Kingdom % 26.0% Slovenia % 26.9% Finland % 27.2% Netherlands % 28.0% Hungary % 28.4% Austria % 30.7% Ireland % 31.9% Germany % 32.8% Serbia % 32.8% Belgium % 34.2% Poland % 34.6% Sweden % 35.3% Latvia % 35.4% Portugal % 35.6% Bosnia and Herzegovina % 36.2% Romania % 39.8% Czech Republic % 40.0% Croatia % 42.3% Norway % 45.6% Estonia % 45.7% Montenegro % 50.6% Slovakia % 54.3% Denmark % 54.4% Lithuania % 59.2%

37 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Business Gas Prices The gas prices presented include all charges payable: network charges plus energy consumed minus any rebates or premiums, plus other charges (meter rental, standing charges, etc.). Initial connection charges are not included. Prices are recorded as national average prices. These prices represent weighted average prices, using the market shares of the gas suppliers surveyed as weighting factors; arithmetic average prices are provided only when weighted figures cannot be calculated. In either case, Member States are required to ensure that a representative share of the national market is covered by the survey. In Ireland the weighted average price is used and, as all suppliers are surveyed, represents the full market. Market shares are based on the quantity of gas invoiced by the gas suppliers to business end-users. When possible, the market shares are calculated separately for each band. The information used for calculating weighted average prices is managed by Member States, respecting confidentiality rules. In the interest of confidentiality, data relating to prices will be communicated only where there are, in the Member State concerned, at least three end-users in each of the consumption bands. Three levels of prices are provided: prices excluding taxes and levies, prices excluding VAT and other recoverable taxes, prices including all taxes, levies and VAT. Gas prices are surveyed for the following categories of business end-user: Table 16 Categories for Business End Use of Natural Gas Annual gas consumption (MWh) Consumption bands Lowest Highest Band share of business gas consumption in Ireland S Band - I1 < % Band - I2 280 < 2, % Band - I3 2,800 < 28, % Band - I4 28,000 < 280, % Band - I5 280,000 <= 1,100, % 3 Energy Prices for Business Data and analysis on gas prices in this section are based on the survey results from the revised Gas & Electricity Price Directive in respect of the second semester of As with electricity price, the average gas price excluding (VAT and other) recoverable taxes is used as this is the most relevant for business consumers. Data is presented on the trend in gas prices since the start of the data collection under the new methodology as well as focusing on the latest semester data and including data revisions published by Eurostat. Data analysis is provided for two consumption bands, I3 and I4. I3 is the band typically reported on by Eurostat for international comparisons. Band I4 is also reported here as it the largest in terms of market share and also represents larger consumers. In aggregate, these two bands account for 60% of the non-domestic natural gas market.

38 36 ENERGY POLICY STATISTICAL SUPPORT UNIT Business Gas Prices in Consumption Band I3 As shown in Figure 16, the gas price to business in Ireland in consumption band I3 fell by 34% over the 18-month period from the first semester of 2008 to the end of The price then increased between the second half of 2009 and the second semester of 2011, by 47%. In the first semester of 2012, it fell by 2.3%. The upward trend resumed in the second semester of 2012, with the price increasing by 12.2%. Prices remained stable in the first semester of 2013 but continued to rise in the second semester of 2013 by 11.8%. In the second half of 2013 EU and Euro Area average price fell by 3.1% and 4.2% respectively. This resulted in Ireland being 18.5% above the EU and 14.8% above the Euro Area averages. Figure 16 Business Gas Prices (ex-vat) in band I3 (2 nd semester 2007 to 2 nd semester 2013) Energy Prices for Business c/kwh S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 Ireland Euro Area EU 28 For consumers in smaller consumption bands I1 and I2, prices increased in the second semester 2013 by 11.6% and 11.5% respectively. Ireland moved above the EU average price in consumption band I1 and band I2 by 4% and 2% respectively (see Table 19). Band I3 also experienced a price increase of 11.8% and moved to being 18.5% above the EU average. In the larger consumption band I4, there was an increase of 3.2%. This increase resulted in Ireland moving from 1.5% above the EU average during the first half of 2013 to being 5.6% above in the second half of Table 17 shows prices in band I3 for the five semesters between the second half of 2011 and the second half of Also shown is the price change for each country between each subsequent semester and for the most recent 12 months for which data is available. Price changes in the second semester of 2013 ranged from a 15.5% increase in Hungary to an 13.8% price decrease in Belgium. Gas prices increased by 11.8% in this consumption band in Ireland. Europe as a whole experienced a 3.1% price decrease in band I3 and the Euro Area a 4.2% decrease. Over the 12 month period S to S price changes varied from a 24.7% increase in Germany to a 14% decrease in Slovenia. Ireland experienced an increase of 11.8% over the 12 month period, which compares with a 4.7% increase experienced in Europe and a 5.9% increase in the Euro Area. Note that the percentage price change shown in Table 17 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these. Figure 17 shows graphically the percentage change in national currencies, arranged in increasing order of price change.

39 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table 17 Business Gas Prices in band I3 in Europe (S to S2 2013) Band I3 July '11 - Dec '11 Jan '12 - Jun '12 without VAT (c/kwh) July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 S2 '11 - S1 '12 S1 '12 - S2 '12 % change S S1 13 S S months to S2 '13 Austria % 0.0% 0.7% -2.1% -1.4% Belgium % 0.0% 14.7% -13.8% -1.2% Bulgaria % 10.5% -10.3% -1.7% -11.8% Croatia % 8.2% -1.1% -7.0% -8.0% Czech Republic % 0.9% -0.6% -1.2% -1.8% Denmark % 0.2% 2.5% -4.1% -1.7% Estonia % -2.7% 5.0% -6.1% -1.4% Finland % 0.6% 1.9% -3.5% -1.7% France % 3.6% 1.2% -4.9% -3.7% Germany % 2.7% 24.5% 0.2% 24.7% Hungary % 6.2% -11.0% 15.5% 2.8% Ireland % 12.2% 0.0% 11.8% 11.8% Italy % -5.9% 5.1% -9.6% -5.1% Latvia % 7.6% -5.8% -1.1% -6.8% Lithuania % 2.7% -4.6% -7.3% -11.5% Luxembourg % 0.6% -0.6% -11.6% -12.1% Netherlands % 0.0% 10.1% -10.4% -1.4% Poland % 11.3% -3.5% 0.6% -2.9% Portugal % 5.0% 0.0% 0.0% 0.0% Romania % 0.8% 6.1% 2.9% 9.1% Slovakia % 4.6% -10.7% 4.9% -6.3% Slovenia % -4.5% -10.3% -4.0% -14.0% Spain % 3.9% 3.7% -3.1% 0.5% Sweden % 2.2% 0.7% -1.4% -0.7% Turkey % 18.2% 2.3% -12.4% -10.4% United Kingdom % 4.3% 3.8% 2.0% 5.9% Euro Area % 1.6% 10.5% -4.2% 5.9% EU % 2.4% 8.1% -3.1% 4.7% 3 Energy Prices for Business Ireland relative to: Euro Area 104.0% 98.4% 108.7% 98.4% 114.8% EU % 101.3% 111.0% 102.7% 118.5% Tables for all gas consumption bands in both GJ and kwh are published in separate Annexes which are available at

40 38 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 17 Percentage change (national currency) in business gas price (band I3) semester and 12 months 3 Energy Prices for Business Hungary Ireland Slovakia Romania Poland United Kingdom Sweden Czech Republic Germany Portugal Latvia Turkey Bulgaria Austria Spain EU 28 Finland Denmark Slovenia Euro Area France Estonia Croatia Lithuania Germany United Kingdom Ireland Hungary Romania Euro Area EU 28 Turkey Czech Republic Sweden Spain Portugal Poland Belgium Netherlands Austria Estonia Denmark Finland France Italy Latvia Slovakia Croatia Italy Netherlands Luxembourg Belgium -15% -10% -5% 0% 5% 10% 15% 20% Lithuania Bulgaria Luxembourg Slovenia -20% -10% 0% 10% 20% 30% % change between S and S % change in 12 months to S Figure 18 shows the ex-vat price for gas in Ireland for band I3 consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was above the EU average price for the periods second half of 2007 to the second half of 2008 and from since the first half of 2011 to the current semester. Price relative to the EU ranged from a high of 18.5% above in latest semester to a low of 12% below in the second half of The trend for the Euro Area average was similar to the EU trend with price ranging from 14.8% above in the current semester to a low of 16.8% below in the second half of 2009.

41 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 18 Business Gas Prices (ex-vat) in band I3 relative to EU and Euro Area 120% Index (EU-28/EuroArea = 100) 110% 100% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 90% 80% Source: Based on Eurostat data relative to Euro Area relative to EU 28 3 Energy Prices for Business

42 40 ENERGY POLICY STATISTICAL SUPPORT UNIT Business Gas Prices in Consumption Band I4 As shown in Figure 19 gas prices to business in consumption band I4 fell from the second semester of 2008 to the end of 2009 and dropped by 29% over that 12 month period. The price of gas in this consumption band has been increasing since then with the exception of the second semester 2011 when it fell by 5.6%. Since the end of 2009 the price of gas in this band has increased by 55% in aggregate. Gas prices in Ireland increased in this consumption band in the first semester of 2013 by 6.7% and increased again in the second semester of 2013 by 3.2%. During the second semester of 2013 the average gas price in the EU decreased by 0.9% and by 0.6% in the Euro Area. The higher rate of increase in Ireland resulted in Ireland moving above the EU and Euro Area averages at 5.6% and 3.2% respectively above. Figure 19 Business Gas Prices (ex-vat) in band I4 (2 nd semester 2007 to 2 nd semester 2013) Energy Prices for Business c/kwh S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 Ireland Euro Area EU 28 Table 18 shows prices in band I4 for the five semesters between the second half of 2011 and the second half of Also shown is the price change for each country between each subsequent semester and for the most recent 12 months for which data is available. Price changes in the second semester of 2013 ranged from an 3.8% increase in France to a 15.4% price decrease in Luxembourg. Gas prices increased by 3.2% in this consumption band in Ireland. Europe as a whole experienced a 0.9% price decrease in band I4 and the Euro Area a 0.6% decrease. Over the 12 month period S to S price changes varied from a 10.1% increase in Ireland to a 23.8% decrease in Croatia. This price increase in Ireland compares with the 1.2% increase experienced in Europe and a 2.4% increase in the Euro Area. Note that the percentage price change shown in Table 18 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these. Figure 20 shows graphically the percentage change in national currencies, arranged in increasing order of price change.

43 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table 18 Business Gas Prices in band I4 in Europe (S to S2 2013) Band I4 July '11 - Dec '11 Jan '12 - Jun '12 without VAT (c/kwh) July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 S2 '11 - S1 '12 S1 '12 - S2 '12 % change S S1 13 S S months to S2 '13 Austria % 3.5% 3.9% -7.8% -4.2% Belgium % 1.0% 3.1% 1.0% 4.1% Bulgaria % 10.8% -11.1% -3.4% -14.1% Croatia % 27.8% -12.0% -13.4% -23.8% Czech Republic % -0.6% -2.2% -1.6% -3.8% Denmark % 3.9% 1.2% -4.7% -3.5% Estonia % -4.7% 4.4% -4.2% 0.0% Finland % 1.7% 1.5% 0.2% 1.7% France % 1.7% 3.6% 3.8% 7.5% Germany % 1.2% 6.3% 2.4% 8.9% Hungary % -5.6% -1.0% -5.0% -5.9% Ireland % 4.8% 6.7% 3.2% 10.1% Italy % -1.4% -3.1% -2.6% -5.7% Latvia % 8.8% -6.5% -1.1% -7.6% Lithuania % 5.3% -8.2% -1.2% -9.3% Luxembourg % 13.1% 2.2% -15.4% -13.5% Netherlands % 4.4% 4.6% -4.0% 0.3% Poland % 10.5% -3.3% -0.9% -4.2% Portugal % 3.7% -0.8% -1.4% -2.2% Romania % -9.7% 2.5% -2.4% 0.0% Slovakia % -3.6% 11.2% -2.8% 8.1% Slovenia % -11.4% -2.9% -14.0% Spain % 3.6% 1.2% -2.9% -1.7% Sweden % 1.8% -1.6% -3.5% -5.0% Turkey % 17.3% 0.0% -12.0% -12.0% United Kingdom % 3.4% 3.0% -1.0% 2.0% Euro Area % 2.1% 2.9% -0.6% 2.4% EU % 2.4% 2.1% -0.9% 1.2% 3 Energy Prices for Business Ireland relative to: Euro Area 84.6% 93.4% 95.9% 99.4% 103.2% EU % 94.8% 97.0% 101.5% 105.6% Tables for all gas consumption bands in both GJ and kwh are published in separate Annexes which are available at

44 42 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 20 Percentage change (national currency) in business gas price (band I4) semester and 12 months France Ireland Germany Belgium Czech Republic Finland Poland Euro Area Ireland Germany Slovakia United Kingdom France Belgium Turkey Euro Area 3 Energy Prices for Business Sweden Latvia EU 28 Turkey Romania Lithuania Portugal United Kingdom Italy Slovakia Spain Slovenia Bulgaria Netherlands Estonia Hungary Denmark Austria Croatia Luxembourg -20% -15% -10% -5% 0% 5% Finland EU 28 Czech Republic Netherlands Estonia Hungary Spain Romania Poland Portugal Sweden Denmark Austria Italy Latvia Lithuania Luxembourg Bulgaria Slovenia Croatia -25% -15% -5% 5% 15% % change between S and S % change in 12 months to S Figure 21 shows the ex-vat price for gas in Ireland for band I4 consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was below the EU average price for most of the period with the exception of the first half 2009 and the latest two semesters. Price relative to the EU ranged from a high of 3% above in the first half of 2009 to a low of 14.4% below in the first half of The price of gas in Ireland relative to the Euro Area was below the Euro Area average since the second half of 2007 until the latest semester. Price ranged from 3.2% above in the current semester to a low of 18.1% below in the second half of 2009 and the first half of 2010.

45 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 21 Business Gas Prices (ex-vat) in band I3 relative to EU and Euro Area 110% Index (EU-28/EuroArea = 100) 100% 90% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 80% Source: Based on Eurostat data relative to Euro Area relative to EU 28 3 Energy Prices for Business

46 44 ENERGY POLICY STATISTICAL SUPPORT UNIT Business Gas Prices EU Comparison Table 19 Business Gas Prices in Ireland (2 nd semester 2013) EU Comparison Gas prices to business consumers (excluding VAT) Price /GJ Price c/kwh % change since last semester Relative to EU average S2 Relative to EU average S1 Band share of market Band I % 102% 95% 9.2% Band I % 104% 90% 15.2% Band I % 119% 103% 22.8% Band I % 106% 101% 37.1% Band I % Table 19 shows Ireland s position relative to the EU average gas prices to business for the second semester 2013 with the first semester 2013 shown in grey. Table 19 also shows the market shares by volume of each band. With respect to ex-vat gas price to business, all bands experienced increases ranging from 3.2% to 11.8%. With reference to Table 19, Ireland s position, compared with the EU average gas prices to industry, went above the EU average for all bands ranging from 2% above in band I1 to 19% above in band I3. Figure 22 shows graphically the position of the ex-vat gas price to business in each consumption band during the second semester of Energy Prices for Business Figure 22 Business Gas Prices (ex-vat) 2 nd Semester 2013 c/kwh Band I1 Band I2 Band I3 Band I4 Band I5 Ireland Euro Area EU 28 Table 20 shows Ireland s ranking in the EU for the ex-vat price paid by business for gas. A ranking of 1 means the most expensive. The bottom row of the table shows the number of countries on which the ranking is based. Table 20 should be read in conjunction with the market share of each band as shown in Table 19. Table 20 Ireland s Ranking in EU for Business Gas Prices (ex-vat) Gas prices to business consumers (excluding VAT) July 10 - Dec 10 Jan 11 - Jun 11 July 11 - Dec 11 Jan 12 - Jun 12 July 12 - Dec 12 Jan 13 - Jun 13 July 13 - Dec 13 Band I Band I Band I Band I Band I No. of Countries

47 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Since the peak of the global energy prices in mid 2008 and up until the first semester of 2010 Ireland s ranking has been improving in all gas consumption bands. Some slippage occurred in the second semester of 2010 and again during the first semester of 2011 as prices generally rose faster in Ireland than in the EU on average. This was the case again during the second half of 2012 and the second half of 2013 when prices in Ireland increased faster than the EU at all consumption levels. During the second semester of 2013 in band I3, the band on which Eurostat reports, Ireland was ranked 4 th most expensive, a deterioration on the 10 th highest ranking in the previous semester. This band represents 23% of the business gas market in Ireland. In the higher consumption band I4, during the second half of 2013 Ireland lost some ground from 15 th place in the previous semester to 11 th out of 25 countries. Bands I1 and I2 ranking fell to 8 th and 11 th places respectively from 13 th and 17 th respectively in the second half of Business Gas Prices Euro Area Comparison Business gas prices in Ireland for the second half of 2013 were below the average for Euro Area countries in all consumption bands as shown in Table 21. Table 21 Business Gas Prices in Ireland (2 nd semester 2013) Euro Area Comparison Gas prices to business consumers (excluding VAT) Price /GJ Price c/kwh Relative to Euro Area average S2 Relative to Euro Area average S1 Band I1 (Consumption < 280 MWh) % 91% Band I2 (280 MWh < Consumption < 2,800 MWh) % 85% Band I3 (2,800 MWh < Consumption < 28,000 MWh) % 98% Band I4 (28,000 MWh < Consumption < 280,000 MWh) % 99% Band I5 (280,000 MWh < Consumption < 1,100,00 MWh) With reference to Table 21, in Ireland gas prices to business were below the Euro Area average in bands I1 and I2 by 2% and 1% respectively. In bands I3 and I4 prices were above the Euro Area average by 15% and 3% respectively. 3 Energy Prices for Business

48 46 ENERGY POLICY STATISTICAL SUPPORT UNIT 4 Energy Prices for Households 4.1 Residential Electricity Prices The data collection for households is based on a voluntary agreement and complements the data collection of gas and electricity prices for industrial users as specified in Council Directive 90/377/EEC. The methodology for collecting data on household electricity prices was also changed under the revised Directive. For households, electricity prices include all charges payable including: energy consumed, network charges, other charges (capacity charges, commercialisation, meter rental etc), all netted for any rebates or premiums due. Initial connection charges are not included. The Member States develop and implement cost-effective procedures to ensure a representative data compilation system based on the following rules: Prices represent weighted average prices, using the market share of the electricity suppliers surveyed as weighting factors. Arithmetic average prices are provided only when weighted figures cannot be calculated. In either case, Member States ensure that a representative share of the national market is covered by the survey. In Ireland the weighted average price is used and, as all suppliers are surveyed, represents the full market. Market shares are based on the quantity of electricity invoiced by electricity supply undertakings to household endusers. If possible, the market shares are calculated separately for each band. The information used for calculating weighted average prices is managed by Member States, respecting confidentiality rules. In Ireland the weighted averages are calculated based on the market shares of suppliers in each band. Three levels of prices are provided: prices excluding taxes and levies, prices excluding VAT and other recoverable taxes, 4 Energy Prices for Households prices including all taxes, levies and VAT. Electricity prices are surveyed for the following categories of household end-user: Table 22 Categories for Residential End Use of Electricity Annual electricity consumption (kwh) Household end-user Lowest Highest Band share of residential electricity consumption in Ireland S Very small (DA) <1, % Small (DB) 1,000 2, % Medium (DC) 2,500 5, % Large (DD) 5,000 15, % Very large (DE) 15, % There follows a comparison of electricity prices to residential consumers in Ireland with the other EU Member States based on the survey results from the revised Gas & Electricity Price Directive in respect of the second semester of 2013 (July to December). The analysis looks first at a basic comparison of residential electricity prices in euro across all the countries and then refines this to more relevant comparisons based on purchasing power parities (PPP) and finally comparison based on Euro Area countries only. The price including all taxes, levies and VAT was used as this is the most relevant for residential consumers. With regard to consumption bands, the most relevant for the majority of residential consumers are the DC band (2,500 5,000 kwh per annum) and the DD band (5,000 15,000 kwh per annum). In the lower consumption bands the average price per kwh is higher because the standing charges and network charges form a larger proportion of the annual costs. In the case of Ireland for instance, there are significant numbers of holiday homes that may be unoccupied for most of the year yet standing charges are still incurred with little or no electricity usage. During data collection, zero usage accounts were excluded.

49 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Residential Electricity Prices in Consumption Band DC Figure 23 shows the trend in electricity prices in consumption band DC for Ireland, EU and Euro Area. Prices in Ireland in this band fell from the start of 2009 until mid 2010 but have increased since then by 33%. For reference, band DC, which is the consumption band normally reported on by Eurostat, accounted for 33% of the electricity use in the residential market in Ireland during the second half of 2013 (see Table 22). Figure 23 Residential Electricity Prices (all taxes included) in band DC (2 nd semester 2007 to 2 nd semester 2013) c/kwh S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 Ireland Euro Area EU 28 In the second semester of 2013, Ireland was 20% above the EU average, which is up on the previous semester figure of 15% above with a peak of 24% above in early Table 23 shows prices in band DC for the five semesters between the second half of 2011 and the second half of 2013 and includes data revisions published by Eurostat. Also shown is the price change for each country between each subsequent semester and for the most recent 12 months for which data is available. Price changes in the first semester of 2013 ranged from a 8.6% increase in Greece to a 10.1% price decrease in Cyprus. Ireland experienced a 4.8% increase in this consumption band during the second half of Europe as a whole experienced on average a 0.8% increase in price and the Euro Area experienced an increase of 1% in band DC. Over the 12 month period S to S price change varied from a 21.7% increase in Estonia to an 18% decrease in Hungary. Ireland experienced an increase of 5.1% over the 12 months, a greater increase than the 2.8% increase experienced in Europe and the 4.2% increase in the Euro Area. Note that the percentage price change shown in Table 23 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these. Figure 24 shows graphically the percentage change in national currencies, arranged in increasing order of price change. Note that tables for all electricity consumption bands are published in a separate Annex which is available at 4 Energy Prices for Households

50 48 ENERGY POLICY STATISTICAL SUPPORT UNIT 4 Energy Prices for Households Table 23 Residential Electricity Prices in band DC in Europe (S to S2 2013) Band DC July '11 - Dec '11 all taxes included (c/kwh) Jan '12 - Jun '12 July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 S2 '11 - S1 '12 S1 '12 - S2 '12 % change S S1 13 S S months to S2 '13 Austria % 2.5% 2.9% -3.1% -0.3% Belgium % -4.5% -2.2% 1.9% -0.4% Bulgaria % 12.9% -3.2% -4.5% -7.6% Croatia % 14.6% -0.9% -1.6% -2.5% Cyprus % 4.6% -5.1% -10.1% -14.7% Czech Republic % 0.3% 1.6% -2.1% -0.5% Denmark % -0.8% 0.9% -2.1% -1.2% Estonia % 2.5% 20.3% 1.2% 21.7% Finland % 0.6% 1.2% -1.2% 0.0% France % 4.2% 1.5% 7.9% 9.6% Germany % 3.1% 9.1% 0.1% 9.2% Greece % 1.9% 10.2% 8.6% 19.7% Hungary % 4.5% -13.7% -5.1% -18.0% Ireland % 6.2% 0.3% 4.8% 5.1% Italy % 7.7% -0.2% 1.4% 1.1% Latvia % -0.9% 0.7% -1.5% -0.8% Lithuania % 0.6% 8.0% 1.5% 9.7% Luxembourg % 0.6% -2.4% -1.1% -3.5% Malta % 0.0% 0.0% 0.0% 0.0% Netherlands % 2.0% 1.1% -0.1% 1.1% Norway % -5.6% 7.5% -6.9% 0.2% Poland % 7.8% -3.2% -2.9% -6.0% Portugal % 3.5% 0.9% 2.4% 3.3% Romania % 2.4% 23.1% -3.3% 19.0% Slovakia % 0.3% -1.4% -1.2% -2.6% Slovenia % 0.0% 4.4% 2.9% 7.5% Spain % 3.9% -2.1% -6.9% -8.8% Sweden % 2.8% 0.9% -2.6% -1.8% Turkey % 12.2% 1.7% -12.1% -10.6% United Kingdom % 6.1% -2.5% 3.2% 0.7% Euro Area % 3.5% 3.2% 1.0% 4.2% EU % 3.9% 2.0% 0.8% 2.8% Ireland relative to: Euro Area 106.9% 108.9% 111.8% 108.6% 112.7% EU % 114.6% 117.1% 115.2% 119.7%

51 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 24 Percentage change (national currency) in household electricity price (band DC) semester and 12 months Greece France Ireland Slovenia United Kingdom Portugal Belgium Lithuania Italy Estonia Euro Area EU 27 Sweden Norway Germany Malta Czech Republic Netherlands Turkey Latvia Luxembourg Slovakia Finland Croatia Poland Denmark Romania Austria Hungary Bulgaria Spain Cyprus -15% -10% -5% 0% 5% 10% 15% % change between S and S Estonia Greece Romania Norway Lithuania France Germany Slovenia United Kingdom Ireland Turkey Euro Area Czech Republic Portugal EU 27 Italy Netherlands Sweden Latvia Malta Finland Austria Belgium Denmark Croatia Slovakia Luxembourg Poland Bulgaria Spain Hungary Cyprus -20% -10% 0% 10% 20% 30% % change in 12 months to S Energy Prices for Households Figure 26 shows the ex-vat price for electricity in Ireland for band DC consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was above the EU average price during the period ranging from a high of 24% above in the first half of 2009 to a low of 5.8% above in the first half of During the latest semester prices were 19.7% above the EU average. Prices were also above the Euro Area average for most of the period ranging from 18.1% above in the second half of 2008 to a low of 0.1% below in the first half of During the latest semester prices were 12.7% above the Euro Area average.

52 50 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 25 Residential Electricity Prices (all taxes included) in band DC relative to EU and Euro Area 125% Index (EU-28/EuroArea = 100) 115% 105% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 95% relative to Euro Area relative to EU 28 Source: Based on Eurostat data 4 Energy Prices for Households Residential Electricity Prices in Consumption Band DD Figure 26 shows the trend in average electricity prices (inclusive of all taxes) in consumption band DD for Ireland, EU and Euro Area. Prices in Ireland in this band also fell since the start of 2009 until mid 2010 when they increased slightly. In the first semester of 2011 prices in this band fell significantly while for the EU and Euro Area prices increased. In the second half of 2011 this was reversed when the increase in Ireland was significantly larger than the average in the EU. The increasing price trend continued into both semesters of The trend changed in the first semester of 2013 with prices falling by 1.2% in band DD but prices rose again in the second semester of 2013 by 5.7%. For reference, band DD accounted for 48% of the electricity use in the residential market in Ireland during the second half of 2013.

53 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 26 Residential Electricity Prices (all taxes included) in band DD (2 nd semester 2007 to 2 nd semester 2013) c/kwh S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 Ireland Euro Area EU 28 In the first semester of 2011, Ireland was 7.5% below the EU average but as a result of the higher rate of price rises since then, this changed to Ireland being 8.5% above the EU average during the second half of Compared with the Euro Area, prices in this band were at the average in the second semester of Table 24 shows prices in band DD for the five semesters between the second half of 2011 and the second half of 2013 and includes data revisions published by Eurostat. Also shown is the price change for each country between each subsequent semester and for the most recent 12 months for which data is available. Price change in the second semester of 2013 ranged from a 8.3% increase in France to a 12.1% price decrease in Turkey. Ireland experienced a 5.7% increase in this consumption band during the second half of Europe as a whole experienced on average a 1.8% increase in price and the Euro Area experienced an increase of 1.9% in band DD. Over the 12 month period S to S price change varied from a 21% increase in Estonia to a 15.4% decrease in Hungary. Ireland experienced a 4.5% increase in electricity price to households in this band and this compares with a 3.4% increase experienced in Europe and a 4.7% increase in the Euro Area during the 12 months. Note that the percentage price change shown in Table 24 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these. Figure 27 shows graphically the percentage change in national currencies, arranged in increasing order of price change. 4 Energy Prices for Households

54 52 ENERGY POLICY STATISTICAL SUPPORT UNIT 4 Energy Prices for Households Table 24 Residential Electricity Prices in band DD in Europe (S to S2 2013) Band DD July '11 - Dec '11 all taxes included (c/kwh) Jan '12 - Jun '12 July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 S2 '11 - S1 '12 S1 '12 - S2 '12 % change S S1 13 S S months to S2 '13 Austria % 2.7% 3.0% -2.0% 0.9% Belgium % 1.1% 1.1% 1.0% 2.1% Bulgaria % 17.1% -4.2% -3.5% -7.6% Croatia % 16.0% -1.1% -1.3% -2.4% Cyprus % 7.0% -6.7% -8.5% -14.7% Czech Republic % 0.2% 2.9% -2.1% 0.7% Denmark % -0.8% -12.8% -2.1% -14.7% Estonia % 3.8% 19.3% 1.4% 21.0% Finland % -0.3% 1.9% -1.6% 0.2% France % 3.8% 1.7% 8.3% 10.2% Germany % 3.1% 9.5% -0.3% 9.2% Greece % 3.4% 7.5% 5.6% 13.6% Hungary % 5.3% -11.9% -3.9% -15.4% Ireland % 7.1% -1.2% 5.7% 4.5% Italy % 7.5% 0.4% 2.1% 2.5% Latvia % 3.1% -3.3% 2.3% -1.1% Lithuania % 1.0% 7.7% 1.6% 9.4% Luxembourg % 0.3% -4.5% -0.3% -4.8% Malta % 0.0% 0.0% 0.0% 0.0% Netherlands % 1.7% 0.7% 1.0% 1.7% Norway % -8.9% 11.4% -7.1% 3.4% Poland % 0.9% -1.2% -1.3% -2.5% Portugal % 3.8% 1.2% 3.5% 4.7% Romania % 2.7% 21.2% -3.8% 16.5% Slovakia % 0.8% -2.4% 0.9% -1.5% Slovenia % 0.1% 2.3% 2.4% 4.8% Spain % 8.2% -6.8% -0.9% -7.6% Sweden % 4.7% -1.0% -0.5% -1.5% Turkey % 12.4% 1.2% -12.1% -11.1% United Kingdom % 8.4% -2.8% 5.4% 2.5% Euro Area % 4.5% 2.7% 1.9% 4.7% EU % 4.8% 1.5% 1.8% 3.4% Ireland relative to: Euro Area 96.6% 97.7% 100.1% 96.4% 100.0% EU % 105.1% 107.3% 104.5% 108.5%

55 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 27 Percentage change (national currency) in household electricity price (band DD) semester and 12 months France Ireland Greece United Kingdom Portugal Latvia Slovenia Sweden Italy Euro Area EU 27 Lithuania Estonia Netherlands Belgium Slovakia Malta Czech Republic Norway Germany Luxembourg Poland Spain Turkey Croatia Finland Austria Denmark Romania Hungary Bulgaria Cyprus -15% -10% -5% 0% 5% 10% % change between S and S Estonia Romania Greece Norway France Lithuania Germany United Kingdom Czech Republic Slovenia Portugal Euro Area Ireland Turkey EU 27 Italy Belgium Netherlands Sweden Austria Finland Malta Latvia Poland Croatia Slovakia Luxembourg Bulgaria Spain Hungary Denmark Cyprus -15% -5% 5% 15% 25% % change in 12 months to S Energy Prices for Households Figure 28 shows the ex-vat price for electricity in Ireland for band DD consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was above the EU average price during the period, with the exception of the first half of 2011, ranging from a high of 18.4% above in the first half of 2008 to a low of 7.8% below in the first half of During the latest semester prices were 8.5% above the EU average. Prices were above the Euro Area average from the second half of 2007 until the first half of Prices were below or at the Euro Area average between the second half of 2009 and the current semester. Price over the period as a whole ranged from 12% above in the second half of 2008 to a low of 14.8% below in the first half of During the latest semester prices were at the Euro Area average.

56 54 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 28 Residential Electricity Prices (all taxes included) in band DD relative to EU and Euro Area 120% Index (EU-28/EuroArea = 100) 110% 100% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 90% 80% relative to Euro Area relative to EU 28 Source: Based on Eurostat data 4 Energy Prices for Households Residential Electricity Prices EU Comparison (in ) Table 25 shows Ireland s position compared with the EU average residential electricity prices for the second semester in 2013, with the first semester 2013 shown in grey. Ireland s position compared with the EU average deteriorated in all consumption bands between the two semesters. The price level in band DA is high compared with the EU average, but this is to be expected if there are a significant number of very low-usage accounts such as holiday homes where the standing charges make up a significant portion of the bills. Bands DC and DD account for 81% of the market here. In the second half of 2013, Ireland was 20% above the EU average in band DC, up 5% points on the previous semester, and in band DD Ireland moved to being 9% above the EU average from 5% above in the previous semester. Table 25 Residential Electricity Prices (cents) (all taxes included) in Ireland (2 nd semester 2013) EU Comparison Electricity prices to residential consumers (all taxes included) Price c/kwh % change since last semester Relative to EU average S2 Relative to EU average S1 Band share of market Band DA % 212% 203% 1.3% Band DB % 139% 131% 8.9% Band DC % 120% 115% 32.7% Band DD % 109% 105% 48.3% Band DE % 98% 95% 8.7% Also shown in Table 25 are the market shares by volume of each band. Consumers in bands DC and DD accounted for 81% of the residential electricity market with band DD being the largest at 48% of the market and DC the second largest at 33%. Figure 29 shows graphically the position of the tax-inclusive electricity price to households during the second semester of 2013.

57 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 29 Residential Electricity Prices (all taxes included) 2 nd Semester c/kwh Band DA Band DB Band DC Band DD Band DE Ireland Euro Area EU 28 Table 26 shows Ireland s ranking in the EU for the tax-inclusive price paid by householders for electricity. A ranking of 1 means the most expensive. The bottom row of the table shows the number of countries on which the ranking is based. Table 26 should be read in conjunction with the market share of each band as shown in Table 25. Table 26 Ireland s Ranking in EU for Residential Electricity Prices (all taxes included) Electricity prices to residential consumers (all taxes included) July 10 - Dec 10 Jan 11 - Jun 11 July 11 - Dec 11 Jan 12 - Jun 12 July 12 - Dec 12 Jan 13 - Jun 13 July 13 - Dec 13 Band DA Band DB Band DC Band DD Band DE No. of Countries Energy Prices for Households During the second semester of 2013 in band DC, the band on which Eurostat reports, Ireland was ranked 4 th most expensive, the same ranking as the previous semester. In consumption band DD Ireland s ranking remained at 6 th most expensive of 29 countries compared with the previous semester.

58 56 ENERGY POLICY STATISTICAL SUPPORT UNIT Residential Electricity Prices EU Comparison (in PPP) Some caveats should be acknowledged in looking at these basic euro prices. Non-euro country prices are converted into euro at the prevailing exchange rates but this does not take into account the varying purchasing powers in each country. To correct for this Eurostat also publishes prices in purchasing power parities. When purchasing power parities are applied, Ireland is 1% above the average in the most significant consumption band DD. In band DC, Ireland is 11% above the average. Table 27 Residential Electricity Prices at Purchasing Power Parity (2 nd Semester 2013) EU Comparison Electricity prices to residential consumers (all taxes included) Price c ppp /kwh Relative to EU average S2 Relative to EU average S1 Band DA (Consumption < kwh) % 188% Band DB (1,000 kwh < Consumption < 2,500 kwh) % 121% Band DC (2,500 kwh < Consumption < 5,000 kwh) % 106% Band DD (5,000 kwh < Consumption < 15,000 kwh) % 97% Band DE (Consumption > 15,000 kwh) % 88% Table 27 shows Ireland s position, relative to the European average electricity prices to households in purchasing power parities for the second semester 2013, with the first semester 2013 shown in grey. Using a straight euro comparison Ireland (see Table 25) was 20% above the EU in band DC; however, using purchasing power parities to compare shows Ireland 11% above. Similarly in Band DD, using a straight euro comparison Ireland was 8.5% above the EU average but using purchasing power parities, Ireland was 1% above the EU average Residential Electricity Prices Euro Area Comparison (in ) 4 Energy Prices for Households Table 28 shows Ireland s position, relative to the Euro Area average electricity prices to households for the second semester 2013, with the first semester 2013 shown in grey. Focusing on just the Euro Area countries and excluding band DA, Ireland was 32% and 13% above the Euro Area average in bands DB and DC, respectively, in the higher consumption band DD was at the Euro Area average and in band DE Ireland was 10% cheaper. Table 28 Residential Electricity Prices ( ) in Ireland (2 nd semester 2013) Euro Area Comparison Electricity prices to residential consumers (all taxes included) Price c/kwh Relative to Euro Area average S2 Relative to Euro Area average S1 Band DA (Consumption < kwh) % 184% Band DB (1,000 kwh < Consumption < 2,500 kwh) % 125% Band DC (2,500 kwh < Consumption < 5,000 kwh) % 109% Band DD (5,000 kwh < Consumption < 15,000 kwh) % 96% Band DE (Consumption > 15,000 kwh) % 87% Disaggregation of Residential Electricity Prices Once a year Eurostat collects a disaggregation of electricity prices from Member States, breaking the average price in each consumption band into its components of energy and supply, network costs and taxes and levies. Table 29 shows the disaggregation of electricity price to business in consumption band DC for the second semester of 2013 sorted by the share of energy and supply in the ex-tax price. With reference to Table 29, the energy and supply component in Ireland was 12.5 c/kwh out of the 24.1 c/kwh total price. This represented 62% of the price exclusive of all taxes and was the 5 th highest in absolute terms and 8 th highest as a share of the ex-tax price out of 33 countries. Network costs accounted for 38% of the ex-tax price or 7.8 c/kwh in absolute terms. This was the 3 th highest in absolute terms and 26 th in terms of the share of ex-tax price.

59 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Table 29 Disaggregated Residential Electricity Prices 2 nd Semester Country Total Price c/kwh Disaggregate price in c/kwh Share in ex-tax price % Energy & Network Costs Taxes & Levies Energy & Network Costs Supply Supply Malta % 13.6% Cyprus % 18.4% Spain % 20.3% United Kingdom % 21.0% Greece % 22.2% Iceland % 25.4% Italy % 29.1% Ireland % 38.5% Bulgaria % 40.0% Croatia % 40.5% Portugal % 41.4% Germany % 41.8% Hungary % 43.5% Austria % 44.3% Finland % 44.5% Netherlands % 44.6% France % 47.1% Poland % 47.7% Slovenia % 48.0% Bosnia and Herzegovina % 48.1% Latvia % 50.3% Luxembourg % 51.2% Estonia % 52.4% Montenegro % 53.1% Slovakia % 53.7% Belgium % 56.8% Lithuania % 57.1% Sweden % 57.2% Romania % 59.2% Norway % 59.2% Denmark % 61.3% Sserbia % 63.8% Czech Republic % 63.9% 4 Energy Prices for Households 26 c denotes confidential.

60 58 ENERGY POLICY STATISTICAL SUPPORT UNIT 4.2 Residential Gas Prices The data collection for households is based on a voluntary agreement and complements the data collection of gas and electricity prices for industrial users as specified in Council Directive 90/377/EEC. The methodology for collecting household data was also changed so the prices collected in accordance with the revised Directive are not directly comparable with those collected under the previous methodology. For households, gas prices include all charges payable including: energy consumed, network charges, other charges (capacity charges, commercialisation, meter rental, etc.), all netted for any rebates or premiums due. Initial connection charges are not included. The Member States develop and implement cost-effective procedures to ensure a representative data compilation system based on the following rules: Prices represent weighted average prices using the market share of the natural gas supply undertakings surveyed. Arithmetic average prices will be provided only when weighted figures cannot be calculated. In either case, Member States will ensure that a representative share of the national market is covered by the survey. In Ireland the weighted average price is used and represents the full market. Market shares are based on the quantity of gas invoiced by gas supply undertakings to household end-users. If possible, the market shares are calculated separately for each band. The information used for calculating weighted average prices is managed by Member States, respecting confidentiality rules. Three levels of prices are to be reported on: prices excluding taxes and levies, prices excluding VAT and other recoverable taxes, prices including all taxes, levies and VAT. Gas prices are surveyed for the following categories of household end-user: 4 Energy Prices for Households Table 30 Categories for Residential End Use of Natural Gas Annual gas consumption (kwh) Residential end-users Lowest Highest Band share of residential gas consumption in Ireland S D1 - Small 0 < 5, % D2 - Medium 5,600 < 56, % D3 - Large 56, % The CER sanctioned a 22% increase in the regulated price of gas charged by Bord Gáis to take effect in October Another increase of 8.5% was sanctioned for October 2012 and a further increase of 2.04% for October Other suppliers announced similar increases. While these increases were applied mid way through the semesters the full effect of these increases was almost fully reflected in the average price for the semester. This is because the bulk of the gas demand is skewed towards the end of the semester with the start of the heating season. There follows a comparison of gas prices to residential consumers in Ireland compared with the other EU Member States based on the survey results from the revised Gas & Electricity Price Directive in respect of the second semester of 2013 (July to December). The analysis looks first at a basic comparison of residential gas prices in euro across all the countries and then refines this down to more relevant comparisons based on purchasing power parities and finally comparison based on Euro Area countries only. The price including all taxes, levies and VAT was used as this is the most relevant for residential consumers.

61 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Residential Gas Prices EU Comparison (in ) With regard to consumption bands the most relevant for the majority of residential consumers is the medium band (5,600 56,000 MWh per annum) referred to as D2. In the lower consumption bands the average price per kwh is higher because the standing charges and network charges form a larger proportion of the annual costs. Figure 30 Residential Gas Prices (all taxes included) in band D2 (2 nd semester 2007 to 2 nd semester 2013) c/kwh S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 Ireland Euro Area EU 28 Figure 30 shows the trend in average gas prices (inclusive of all taxes) to households in Ireland and Europe. The gas prices to Irish households were higher than the EU average over the period from the second semester 2007 to the second semester 2009 with the exception of the first semester of 2008 when they were at the EU average. In the first semester 2011 gas prices in Ireland in consumption band D2 were 9.1% lower than the EU average and 17.9% lower than the Euro Area average. Since then the price of gas to Irish householders has remained below the EU and Euro Area averages until the second semester of 2013 when it went above the EU average by 2.1% but remained below the Euro Area average by 8.5%. Table 31 shows prices in band D2 for the five semesters between the second half of 2011 and the second half of 2013 and includes data revisions published by Eurostat. Also shown in Table 31 is the price change for each country between each subsequent semester and for the most recent 12 months for which data is available. Price change in the second semester of 2013 ranged from a 21.9% increase in Spain to a 10.3% price decrease in the Czech Republic. Ireland experienced a 10.6% increase in the second semester 2013 compared with the previous semester. Europe as a whole experienced an increase of 8.1% in gas price in band D2 and the Euro Area an 8.2% increase. Over the 12 month period S to S price changes varied from a 12% increase in Romania to an 18.8% decrease in Hungary. Ireland experienced an increase of 7.4% over the 12 month period. This increase for Ireland compares with the 1% increase experienced in Europe and the 1.8% increase experienced in the Euro Area. Note that the percentage price change shown in Table 31 is calculated from the published Eurostat euro values for each country. Percentage price change in national currencies may differ considerably from these. Figure 31 shows graphically the percentage change in national currencies, arranged in increasing order of price change. Tables for all gas consumption bands in both GJ and kwh are published in separate Annexes which are available at 4 Energy Prices for Households

62 60 ENERGY POLICY STATISTICAL SUPPORT UNIT Table 31 Residential Gas Prices in band D2 in Europe (S to S2 2013) 4 Energy Prices for Households Band D2 all taxes included (c/kwh) July '11 - Dec '11 Jan '12 - Jun '12 July '12 - Dec '12 Jan 13 - Jun 13 July 13 - Dec 13 % change S2 '11 - S1 '12 S1 '12 - S2 '12 S S1 13 S S months to S2 '13 Austria % 0.7% 0.5% -1.7% -1.2% Belgium % 6.5% -10.2% 1.4% -9.0% Bulgaria % 12.6% -7.7% 1.0% -6.8% Croatia % 23.2% -1.5% 0.6% -0.8% Czech Republic % 0.3% -3.0% -10.3% -13.0% Denmark % -2.3% 4.3% -1.6% 2.7% Estonia % 3.6% 1.2% -9.2% -8.1% France % 7.4% -0.6% 7.5% 6.9% Germany % 1.7% 2.0% 4.2% 6.3% Hungary % 7.0% -16.4% -2.8% -18.8% Ireland % 9.4% -2.8% 10.6% 7.4% Italy % 25.9% -13.8% 13.4% -2.3% Latvia % 9.4% -9.6% -0.4% -10.0% Lithuania % 19.8% -1.3% 1.8% 0.5% Luxembourg % 2.8% 5.1% -9.3% -4.7% Netherlands % 11.6% -3.8% 4.2% 0.2% Poland % 22.8% -18.4% 8.3% -11.6% Portugal % 15.4% -2.0% 11.6% 9.4% Romania % 1.1% 4.0% 7.7% 12.0% Slovakia % -0.2% -2.9% 4.0% 1.0% Slovenia % -8.5% -8.5% -0.9% -9.3% Spain % 30.6% -15.2% 21.9% 3.4% Sweden % 8.0% -3.2% -0.2% -3.5% Turkey % 28.6% 0.0% -9.3% -9.3% United Kingdom % 10.7% -8.1% 10.7% 1.7% Euro Area % 12.8% -5.9% 8.2% 1.8% EU % 12.0% -6.6% 8.1% 1.0% Ireland relative to: Euro Area 86.6% 89.4% 86.7% 89.6% 91.5% EU % 98.2% 96.0% 99.8% 102.1%

63 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 31 Percentage change (national currency) in household gas price (band D2) semester and 12 months Spain Italy Portugal Ireland United Kingdom Poland Romania Euro Area EU 27 France Germany Netherlands Slovakia Sweden Turkey Lithuania Belgium Bulgaria Croatia Romania Portugal United Kingdom Ireland France Germany Turkey Spain Denmark Euro Area Slovakia EU 27 Lithuania Croatia Netherlands Sweden Austria Italy Luxembourg Latvia Slovenia Denmark Austria Hungary Czech Republic Estonia Luxembourg -10% 0% 10% 20% 30% % change between S and S Bulgaria Estonia Belgium Czech Republic Latvia Slovenia Poland Hungary -15% -10% -5% 0% 5% 10% 15% % change in 12 months to S Energy Prices for Households Figure 32 shows the ex-vat price for gas in Ireland for band D2 consumption levels relative to the EU and Euro Area as an index over the period. The price in Ireland was above the EU average price during the period from the second half of 2007 until the second half of 2009 and the current semester. Prices ranged from a high of 18.3% above in the first half of 2007 to a low of 9.3% below in the first half of During the latest semester prices were 2.1% above the EU average. Prices below the Euro Area over the period with the exception of the first semester of Price over the period as a whole ranged from 1.8% above in the second half of 2007 to a low of 17.9% below in the first half of During the latest semester prices were 8.5% below the Euro Area average.

64 62 ENERGY POLICY STATISTICAL SUPPORT UNIT Figure 32 Residential Gas Prices (all taxes included) in band D2 relative to EU and Euro Area 120% 115% Index (EU-28/EuroArea = 100) 110% 105% 100% 95% 90% 2007S2 2008S1 2008S2 2009S1 2009S2 2010S1 2010S2 2011S1 2011S2 2012S1 2012S2 2013S1 2013S2 85% 80% relative to Euro Area relative to EU 28 Source: Based on Eurostat data 4 Energy Prices for Households Table 32 shows Ireland s position, relative to the EU average gas prices to householders for the second semester 2013 with the first semester 2013 shown in grey. Also shown in Table 32 are the market shares by volume of each band. Table 32 Residential Gas Prices in Ireland (2 nd semester 2013) EU Comparison Gas prices to residential consumers (all taxes included) Price /GJ Price c/kwh % change since last semester Relative to EU average S2 Relative to EU average S1 Band share of market Band D1 - Small % 86% 80% 4.4% Band D2 - Medium % 102% 100% 93.6% Band D3 - Large % 107% 100% 2.0% During the second semester of 2013 consumption band D1 was below the EU average by 14% but bands D2 and D3 were above the average by 2% and 7% respectively. Figure 33 shows graphically the position of the tax-inclusive gas price to households during the second semester of 2013.

65 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Figure 33 Residential Gas Prices (all taxes included) 2 nd Semester c/kwh Band D1 Band D2 Band D3 Ireland Euro Area EU 28 Table 33 shows Ireland s ranking in the EU for the tax-inclusive price paid by residential consumers for gas. A ranking of 1 means the most expensive. The bottom row of the table shows the number of countries on which the ranking is based. Table 33 should be read in conjunction with the market share of each band as shown in Table 32. Table 33 Ireland s Ranking in EU for Residential Gas Prices (all taxes included) Gas prices to residential consumers (all taxes included) July 10 - Dec 10 Jan 11 - Jun 11 July 11 - Dec 11 Jan 12 - Jun 12 July 12 - Dec 12 Jan 13 - Jun 13 July 13 - Dec 13 Band D Band D Band D No. of Countries Ireland s ranking improved in all residential gas consumption bands between the first half of 2009 and the first half of All bands experienced some deterioration in their ranking in the second half of 2011 but some of the ground lost at the end of 2011 was regained in the first half of Energy Prices for Households During the second semester of 2013 in band D2, the band on which Eurostat reports and the band that represents 94% of residential gas use here, Ireland was ranked 9 th most expensive of 24 countries, an deterioration of 3 places on the previous semester.

66 64 ENERGY POLICY STATISTICAL SUPPORT UNIT Residential Gas Prices EU Comparison (in PPP) As with electricity, the purchasing power parity indexed prices give a better basis for comparison of gas prices to residential consumers across Europe. Non-euro countries prices are converted into euro at the prevailing exchange rates but don t take into account the varying purchasing powers in each country. To correct for this Eurostat also publishes prices in purchasing power parities. Table 34 Residential Gas Prices (Purchasing Power Parity) (2 nd semester 2013) EU Comparison Gas prices to residential consumers at purchasing power parities (all taxes included) Price c ppp /kwh Relative to EU average S2 Relative to EU average S1 Band D1 - Small % 74% Band D2 - Medium % 92% Band D3 - Large % 93% Table 34 shows Ireland s position, expressed in purchasing power parity, relative to the European average gas prices to households for the second semester 2013, with the first semester 2013 shown in grey. When purchasing power parities are applied, Ireland is below the EU average in all gas consumption bands for residential consumers, ranging from 1% to 20% below. In band D2 Ireland was 5% below the EU average in the second semester of 2013 in purchasing power parity terms Residential Gas Prices Euro Area Comparison (in ) Table 35 shows Ireland s position, relative to the Euro Area average gas prices to households for the second semester 2013, with the first semester 2013 shown in grey. When the focus is on just the Euro Area countries, Ireland is below the average in all bands, ranging from 3% to 26% below. In band D2 Ireland was 8% below the Euro Area average. 4 Energy Prices for Households Table 35 Residential Gas Prices in Ireland (2 nd semester 2013) Euro Area Comparison Gas prices to residential consumers (all taxes included) Price /GJ Price c/kwh Relative to Euro Area average S2 Relative to Euro Area average S1 Band D1 - Small % 68% Band D2 - Medium % 90% Band D3 - Large % 90%

67 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Energy Prices for Households

68 66 ENERGY POLICY STATISTICAL SUPPORT UNIT References Cambridge Energy Research Associates (2008), An Enduring Relationship? Oil and Gas Prices in Europe. CER ( ), Transmission Price Control Review: A Response Paper, CER (November, 2010), Decision on TSO and TAO Transmission Revenue for 2011 to 2015, CER (July, 2011), Public Service Obligation Levy 2011/2012 Decision Paper (CER/11/130), CER (August, 2012), Public Service Obligation Levy 2012/2013 Decision Paper (CER/12/121), CER (September, 2012), 2013 TSO and TAO Revenue Information Note, CER (July, 2013), Public Service Obligation Levy 2013/2014 Decision Paper (CER/13/168), European Commission (2006), Annex to the Green Paper: A European Strategy for Sustainable, Competitive and Secure Energy What is at stake Background Document. COM(2006) 105 Final. European Commission Directorate General for Energy and Transport (2008), EU Energy and Transport in Figures. Statistical Pocketbook 2007/2008, ISBN European Commission (2008), Progress in creating the internal gas and electricity market, COM(2008) 192 Final. Eurostat (2009), Gas Prices for first semester 2009, details/publication?p_product_code=ks-qa Eurostat (2009), Electricity Prices for first semester 2009, product_details/publication?p_product_code=ks-qa Eurostat (2009), Gas Prices for second semester 2008, details/publication?p_product_code=ks-qa Eurostat (2009), Electricity Prices for second semester 2008, product_details/publication?p_product_code=ks-qa Eurostat (2010), Electricity Prices for first semester 2010, details/publication?p_product_code=ks-qa Eurostat (2010), Electricity Prices for second semester 2009, product_details/publication?p_product_code=ks-qa Eurostat (2010), Gas Prices for first semester 2010, details/publication?p_product_code=ks-qa Eurostat (2010), Gas Prices for second semester 2009, details/publication?p_product_code=ks-qa International Energy Agency (2008), Medium Term Oil Market Report, International Energy Agency (2008), Medium Term Oil Market Report - December 2008 Supplement, International Energy Agency (2008), Oil Market Report A Monthly Market and Stocks Assessment July 2008, org. National Grid (2007), Winter 2007/2008 Preliminary Consultation Report. Published by Ofgem. Sustainable Energy Authority of Ireland (November, 2010), Electricity & Gas Prices in Ireland 1 st Semester (January June) 2010, Prices/Electricity_and_Gas_Prices_in_Ireland_january_to_june.pdf. Sustainable Energy Authority of Ireland (2011), Energy Security in Ireland - A Statistical Overview, Publications/Statistics_Publications/EPSSU_Publications/Energy_Security_in_Ireland/Energy_Security_in_ Ireland_A_Statistical_Overview.pdf. Sustainable Energy Authority of Ireland (2013), Energy in Ireland , 2013 Report, Publications/Statistics_Publications/Energy_in_Ireland/. References

69 ELECTRICITY & GAS PRICES IN IRELAND 2 ND SEMESTER (JULY DECEMBER) Appendix 1 Electricity & Gas Prices in Ireland Table 36 Business Electricity Prices 2 nd Semester 2013 Business electricity prices (ex VAT) weighted average across all suppliers c/kwh S2 Change since S1 Change in 12 months Ranking EU (30) Band Share of Market Band IA Consumption < 20 MWh % -4.5% 8 7.6% Band IB 20 MWh < Consumption < 500 MWh % 1.8% % Band IC 500 MWh < Consumption < 2,000 MWh % -1.7% % Band ID 2,000 MWh < Consumption < 20,000 MWh % -2.7% % Band IE 20,000 MWh < Consumption < 70,000 MWh % -5.3% 8 8.1% Band IF 70,000 MWh < Consumption < 150,000 MWh % -5.0% 8 4.7% Table 37 Business Gas Prices 2 nd Semester 2013 Business gas prices (ex VAT) weighted average across all suppliers c/kwh S2 Change since S1 Change in 12 months Ranking EU (26) Band Share of Market Band I1 Consumption < 1,000 GJ % 8.8% 8 9.2% Band I2 1,000 GJ < Consumption < 10,000 GJ % 10.2% % Band I3 10,000 GJ < Consumption < 100,000 GJ % 11.8% % Band I4 100,000 GJ < Consumption < 1,000,000 GJ % 10.1% % Band I5 1,000,000 GJ < Consumption < 4,000,000 GJ % Table 38 Residential Electricity Prices 2 nd Semester 2013 Household electricity prices (all taxes included) weighted average across all suppliers c/kwh S2 Change since S1 Change in 12 months Ranking EU (30) Band Share of Market Band DA Consumption < 1,000 kwh % 8.7% 1 1.3% Band DB 1,000 kwh < Consumption < 2,500 kwh % 7.2% 3 8.9% Band DC 2,500 kwh < Consumption < 5,000 kwh % 5.1% % Band DD 5,000 kwh < Consumption < 15,000 kwh % 4.5% % Band DE Consumption > 15,000 kwh % 4.3% % Table 39 Residential Electricity Prices (Purchasing Power Parities) 2 nd Semester 2013 Household electricity prices (all taxes included) weighted average across all suppliers c PPP /kwh S2 Change since S1 Change in 12 months Ranking EU (30) Band Share of Market Band DA Consumption < 1,000 kwh % 8.7% 1 1.3% Band DB 1,000 kwh < Consumption < 2,500 kwh % 7.2% 6 8.9% Band DC 2,500 kwh < Consumption < 5,000 kwh % 5.0% % Band DD 5,000 kwh < Consumption < 15,000 kwh % 4.5% % Band DE Consumption > 15,000 kwh % 4.3% % Table 40 Residential Gas Prices 2 nd Semester 2013 Household gas prices (all taxes included) weighted average across all suppliers c/kwh S2 Change since S1 Change in 12 months Ranking EU (25) Band Share of Market Band D1 Consumption < 20 GJ % 15.4% % Band D2 20 GJ < Consumption < 200 GJ % 7.4% % Band D3 Consumption > 200 GJ % 7.0% 8 2.0% Table 41 Residential Gas Prices (Purchasing Power Parities) 2 nd Semester 2013 Household gas prices (all taxes included) weighted average across all suppliers c ppp /kwh S2 Change since S1 Change in 12 months Ranking EU (25) Band Share of Market Band D1 Consumption < 20 GJ % 15.5% % Band D2 20 GJ < Consumption < 200 GJ % 7.4% % Band D3 Consumption > 200 GJ % 7.0% % Appendix 1

70 68 ENERGY POLICY STATISTICAL SUPPORT UNIT Appendix 2 Methodologies for Assessing Prices The International Energy Agency (IEA) is responsible for a major international compilation of energy prices at all market levels: import prices, industry prices and consumer prices. A large portion of the data is drawn from a quarterly reporting system of end-use energy prices initiated in While this provides an extensive databank of energy prices, making comparisons between countries is not a trivial task. Definitions for prices shown for a particular energy source used in a given sector may differ from country to country. At one extreme, gasoline prices are closely comparable between countries; at the other extreme, only broad order of magnitude comparisons between coal prices may be possible. Data collected in Ireland for IEA s Energy Prices & Taxes surveys are overall average prices for a given sector and therefore represent an aggregate price for small, medium and large consumers. Eurostat collects electricity and gas prices under Council Directive 90/377/EEC of 29 June 1990 concerning a Community procedure to improve the transparency of gas and electricity prices charged to business end-users. This Directive obliges Member States to ensure that undertakings that supply electricity and gas to business end-users provide statistical data on an annual basis. Data must be provided to Eurostat on the price and terms of sale of gas and electricity to business end-users, the price systems in use and the breakdown of consumers and the corresponding volumes by category of consumption. The Sustainable Energy Authority of Ireland (SEAI) has responsibility for the collection, collation and reporting of data on Ireland s behalf. In 2002 Eurostat s Energy Statistics Committee meeting gave the mandate to set up a task force to study improvements in the existing data collection and methodology to take account in particular of market liberalization that changed the context for the methodology applied. Directive 90/377/EEC was recast in the interests of clarity and as a result the revised methodology, European Commission Decision (2007/394/EC), has been applied since 1st January The electricity and gas price comparisons assessed in sections 3 and 4 of this report are drawn from the first set of results arising from this new methodology. This new methodology reflects more accurately the actual cost of gas and electricity to final consumers as it incorporates all the factors in the cost of their use. The methodology is comprehensive and transparent and in each customer category, information is sought from each supplier regarding the volume of sales and the associated revenue. This allows computation of a national sales weighted unit price for electricity and gas for each customer category. It facilitates the comparison of costs across the EU but care must be taken in choosing the relevant costs to compare and to allow for currency and purchasing power differences. Appendix 2

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72 Sustainable Energy Authority of Ireland Energy Policy Statistical Support Unit Building 2100 Cork Airport Business Park Co. Cork Ireland Sustainable Energy Authority of Ireland Wilton Park House Wilton Place Dublin 2 Ireland t f e [email protected] w t f e [email protected] w The Sustainable Energy Authority of Ireland is partly financed by Ireland s EU Structural Funds Programme co-funded by the Irish Government and the European Union