Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Energy Costs (Industrial Report) - Ireland - January 2010

The key fuel segments examined in this report are:

  • Oil and petroleum products

  • Natural gas

  • Coal

  • Peat

  • Alternatives/renewables – eg wind power, hydro-power, solar power, biomass and geo-thermal heat.

This report has an industrial focus and therefore looks at energy prices from two perspectives:

  • wholesale prices and the wholesale market

  • end user prices – ie industrial and domestic.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Issues in the Market

      • Key issues
        • Definitions
          • Geographical, national and regional definitions
            • Exchange rates
              • Abbreviations
                • Energy definitions
                  • Conversion factors
                  • Future Opportunities

                    • Searching for an anchor
                      • The world is a lot smaller than you think
                        • The search for trust
                          • The growing importance of brand
                            • From utility to energy suppliers
                              • Go Orange
                                • Making the supply side more competitive
                                  • Give end users more reasons to buy green
                                  • Market in Brief

                                    • The global dimension
                                      • The local dimension
                                        • Local energy demand
                                          • Figure 1: The total final end user energy consumption in IoI (ktoe), 2001-08
                                        • Prices in NI, RoI and UK linked…
                                          • Figure 2: Industrial Gas and Electricity prices in RoI and NI from October 2009
                                          • Figure 3: Domestic gas and electricity prices in RoI and NI from October 2009
                                          • Figure 4: The retail price of petrol (super Euro 95), automotive gas oil and heating oil in RoI and UK, 29th September 2009
                                      • Price Drivers: Economic Factors

                                        • Key points
                                          • The Irish economy drives energy demand
                                            • Figure 5: Total primary energy requirement* and GDP of RoI, 2001-08
                                            • Figure 6: Economic outlook for NI and RoI 2008-10
                                          • But the global economy is increasingly important…
                                            • Especially developing countries
                                              • Figure 7: Global shares of oil demand, 2006-30
                                            • Economic structure impacts on the type of energy demanded
                                              • The search for cheaper alternatives
                                                • The search for greener fuels
                                                • Price Drivers: Political Factors

                                                  • Key points
                                                    • Political initiatives on climate change
                                                      • Emission and pollution must be paid for
                                                        • Energy security
                                                          • EU influence
                                                            • The EU’s Third Energy package
                                                              • Unbundling
                                                                • Full ownership unbundling
                                                                  • The independent system operator
                                                                    • The independent transmission operator
                                                                    • Energy Usage and Consumption: Overview

                                                                      • Key points
                                                                        • Structure of energy use
                                                                          • Primary supply
                                                                            • Energy industry
                                                                              • End users
                                                                                • Figure 8: The flow of energy in Ireland, 2009
                                                                              • Rising energy demand in Ireland
                                                                                • Figure 9: End user energy consumption (million toe) in NI and RoI, 2001-08
                                                                              • NI relies more heavily on petroleum products
                                                                                • Figure 10: The structure of end user energy consumption (% of ktoe) by energy type in NI and RoI, 2008
                                                                            • Energy Usage and Consumption: RoI

                                                                              • Key points
                                                                                • Figure 11: The energy balance for RoI (ktoe), 2001-08
                                                                              • Import dependency is high
                                                                                • Figure 12: Import dependency of RoI*, 2001-08
                                                                              • Oil remains the bedrock of the energy market
                                                                                • Figure 13: The breakdown of primary energy consumption and end user consumption, by type, 2001-08
                                                                                • Figure 14: The percentage* of gross electricity generation, by fuel type in RoI, 2001-08
                                                                              • Renewables - a niche sector
                                                                              • Energy Usage and Consumption: NI

                                                                                • Key points
                                                                                  • NI energy requirements increase slightly in 2008
                                                                                    • Figure 15: Estimated summary energy balance for NI (ktoe), 2001-08
                                                                                  • Oil satisfies NI energy demands
                                                                                    • Figure 16: Breakdown of end user energy consumption in NI and UK, 2007-08
                                                                                  • Natural gas as a consumer fuel still in its infancy
                                                                                    • Coal used mainly for electricity generation
                                                                                      • Nuclear plays a role in the UK
                                                                                        • Renewables on the rise
                                                                                          • Figure 17: Renewable energy for electricity generation in NI, 2007 and 2008
                                                                                      • Price and Market Structures: Oil and Refined Products

                                                                                        • Key points
                                                                                          • Ireland relies on imported products
                                                                                            • Figure 18: The structure of the oil and refined products market in Ireland
                                                                                          • The components of the oil and oil product price
                                                                                              • Figure 19: The breakdown in the cost of a litre of petrol and diesel sold in RoI, December 2008
                                                                                            • What impact Irish demand has on Irish oil prices
                                                                                              • What determines international crude and refined prices
                                                                                                • Spot and futures markets and the role of speculation
                                                                                                  • The over-the-counter (OTC) market
                                                                                                  • Price and Market Structures: Gas

                                                                                                    • Key points
                                                                                                      • The components of gas prices
                                                                                                          • Figure 20: The composition of a natural gas bill in RoI (excl taxes), 2009
                                                                                                        • Energy taxes
                                                                                                          • Figure 21: Gas energy taxes in RoI and NI, end 2008
                                                                                                        • Trading in gas as a commodity
                                                                                                          • Purchasing of supplies
                                                                                                            • UK supplies increasingly sourced overseas
                                                                                                              • Bord Gáis Trading
                                                                                                                • Gas market structure
                                                                                                                    • Figure 22: The gas supply structure in Ireland, 2009
                                                                                                                  • Cross country links
                                                                                                                    • Proposed single gas market
                                                                                                                      • Regulation in RoI
                                                                                                                        • Price controls in RoI
                                                                                                                          • Regulation in NI
                                                                                                                            • Price controls in NI
                                                                                                                              • The postalisation of gas prices in NI
                                                                                                                              • Price and Market Structures: Electricity

                                                                                                                                • Key points
                                                                                                                                  • The components of electric prices
                                                                                                                                    • Why oil matters to electricity
                                                                                                                                      • Electricity market structure
                                                                                                                                          • Figure 23: The structure of the electricity system in Ireland
                                                                                                                                        • Growing cross country links
                                                                                                                                          • The single electricity market
                                                                                                                                              • Figure 24: SEM metrics, 2007/08-2009/10
                                                                                                                                            • NI: Regulation and price controls
                                                                                                                                              • Regulators
                                                                                                                                                • Price controls
                                                                                                                                                  • RoI regulation and price controls
                                                                                                                                                    • CER has overall responsibility
                                                                                                                                                      • It influences the generator market…
                                                                                                                                                        • And the transmission system
                                                                                                                                                          • And regulated distribution tariffs
                                                                                                                                                            • It also licenses supply companies…
                                                                                                                                                              • And regulators ESB Customer Supply’s tariffs
                                                                                                                                                                • Electricity taxes
                                                                                                                                                                  • Figure 25: Electricity energy taxes in RoI and NI, end 2008
                                                                                                                                                              • Strengths and Weaknesses in the Market

                                                                                                                                                                • Strengths
                                                                                                                                                                  • Weaknesses
                                                                                                                                                                  • Cost Trends and Forecast: Global Wholesale Prices

                                                                                                                                                                    • Key points
                                                                                                                                                                      • Crude oil price explosion and then slump
                                                                                                                                                                        • Figure 26: Europe Brent Spot Price free on board (FOB) (Dollars per barrel), August 1989-August 2009
                                                                                                                                                                      • Refined product prices move with crude prices
                                                                                                                                                                        • Figure 27: European Spot Price (Cents per gallon) for refined oil products, June 2003-September 2009
                                                                                                                                                                      • Gas and coal also move with oil
                                                                                                                                                                        • Figure 28: Actual and predicted global energy prices, 1992-2010
                                                                                                                                                                    • Cost Trends and Forecast: Industrial End User Prices

                                                                                                                                                                      • Key points
                                                                                                                                                                        • Industrial gas prices
                                                                                                                                                                          • Figure 29: The average industrial gas price in the UK and RoI (Euro per kWh), 1999-2009
                                                                                                                                                                          • Figure 30: Quarterly industrial gas prices in RoI, Q1 2004 = Q1 2009
                                                                                                                                                                        • Drop in wholesale prices slowly feeding into end user prices
                                                                                                                                                                          • Figure 31: The industrial and commercial user tariff for Phoenix natural gas NI (excl. VAT), 2009
                                                                                                                                                                          • Figure 32: Bord Gáis Industrial gas charges, 2009
                                                                                                                                                                        • Major savings for large users in RoI
                                                                                                                                                                          • Figure 33: The structure of industrial unit gas prices* in RoI, 2007-09
                                                                                                                                                                        • NI prices higher than those in the republic
                                                                                                                                                                          • Figure 34: Comparison of industrial gas prices (lowest tariff available) in NI* and RoI from October 2009
                                                                                                                                                                        • Industrial electricity prices
                                                                                                                                                                          • Figure 35: The average industrial electricity price in the UK and RoI (Euro per kWh), 1999-2009
                                                                                                                                                                        • Wholesale prices moving down in 2009
                                                                                                                                                                          • Figure 36: Energy price adjustment for NI Electricity, (pence per kWh) Oct 2008-Aug 2009
                                                                                                                                                                        • RoI prices jump, while those in the UK move
                                                                                                                                                                          • Figure 37: Price indices for industrial electricity prices, Jan 2000-Aug 2009
                                                                                                                                                                        • No standard tariffs in NI
                                                                                                                                                                          • Figure 38: NIE published non-domestic tariffs for users up to 70kVA, October 2009
                                                                                                                                                                        • RoI small business unit tariffs marginally cheaper than those in NI
                                                                                                                                                                          • Figure 39: Small business tariff of ESB in RoI, October 2009
                                                                                                                                                                        • Large user tariffs more complex
                                                                                                                                                                            • Figure 40: The structure of industrial electricity tariffs in RoI, 2007-09
                                                                                                                                                                          • Oil market drives industrial oil-based fuel costs…
                                                                                                                                                                            • Figure 41: Index of wholesale prices for oil-based fuels in RoI (2000=100), 2000-09
                                                                                                                                                                          • And the same pattern is seen in the UK
                                                                                                                                                                            • Figure 42: Prices (£ per tonne) of industrial oil-based products*, 2000-09
                                                                                                                                                                          • Prices in NI move in tandem with UK prices
                                                                                                                                                                            • Figure 43: Trends in UK and NI pump prices of petrol, December 2007-September 2009
                                                                                                                                                                          • NI and RoI prices move in harmony
                                                                                                                                                                            • Figure 44: Trends in pump prices of petroleum products in the UK and RoI, 2005-09
                                                                                                                                                                          • Taxes ensure NI prices remain above RoI prices
                                                                                                                                                                            • Figure 45: Petroleum pump prices in RoI and UK (Euro per 1000 litres), on 28th September 2009
                                                                                                                                                                        • Cost Trends and Forecast: Domestic Prices

                                                                                                                                                                          • Key points
                                                                                                                                                                            • UK and RoI domestic energy prices move in sync
                                                                                                                                                                              • Figure 46: Trends in UK and RoI consumer energy price indices (Consumer price indices all energy products), 2000-09
                                                                                                                                                                            • UK prices have risen more rapidly recently
                                                                                                                                                                              • But are starting to edge down
                                                                                                                                                                                • Figure 47: Trends in UK and RoI consumer energy price indices, 2000-09
                                                                                                                                                                              • Domestic electricity costs
                                                                                                                                                                                • RoI consumers traditionally pay more for their electricity than those in the UK
                                                                                                                                                                                  • Figure 48: The annual average cost of domestic electricity in RoI and UK (cent per kWh), 1999-2008
                                                                                                                                                                                • But that situation changed in 2009
                                                                                                                                                                                    • Figure 49: The domestic electricity rate for normal domestic use in RoI (quoted tariff for ESB), October 2009
                                                                                                                                                                                    • Figure 50: The domestic electricity rate for normal domestic use in NI (quoted tariff for NIE), October 2009
                                                                                                                                                                                  • Domestic gas prices
                                                                                                                                                                                    • UK and RoI prices shadow each other
                                                                                                                                                                                      • Figure 51: The annual average cost of domestic gas in RoI and UK (cent per kWh), 1999-2009
                                                                                                                                                                                    • Unit rates are coming down but standing tariffs are up in RoI
                                                                                                                                                                                      • Figure 52: Domestic gas tariffs (Bord Gáis) for normal residential consumers with an annual consumption of less than 73,000 kWh, October 2009
                                                                                                                                                                                      • Figure 53: Domestic gas tariffs (Bord Gáis) for large residential consumers with an annual consumption of more than 73,000 kWh, October 2009
                                                                                                                                                                                    • Prices also coming down in NI
                                                                                                                                                                                      • Figure 54: Domestic gas tariffs (Phoenix) for normal residential consumers with an annual consumption of less than 73,000 kWh, October 2009
                                                                                                                                                                                    • Domestic heating oil prices follow the oil price path
                                                                                                                                                                                      • Figure 55: The price of domestic heating oil (€ per 1000 litres)+ in RoI and UK, 2005-09
                                                                                                                                                                                    • Prices in RoI are above those of the UK
                                                                                                                                                                                      • Figure 56: The price of heating oil (€ per 1000 litres), with and without taxes, 29th September 2009
                                                                                                                                                                                  • Suppliers

                                                                                                                                                                                    • Key points
                                                                                                                                                                                      • Major gas suppliers
                                                                                                                                                                                        • Bord Gáis Éireann
                                                                                                                                                                                          • DCC Energy
                                                                                                                                                                                            • Gaslink
                                                                                                                                                                                              • Phoenix Natural Gas Group
                                                                                                                                                                                                • Vayu Ltd
                                                                                                                                                                                                  • Major electricity suppliers
                                                                                                                                                                                                    • Eirgrid
                                                                                                                                                                                                      • ESB Group
                                                                                                                                                                                                        • Kilroot power station/AES
                                                                                                                                                                                                          • Premiere Power Ltd
                                                                                                                                                                                                            • Viridian Group
                                                                                                                                                                                                              • Cross product suppliers
                                                                                                                                                                                                                • Northern Ireland Energy Holdings
                                                                                                                                                                                                                  • Major oil product suppliers
                                                                                                                                                                                                                    • BP
                                                                                                                                                                                                                      • Chevron/Texaco
                                                                                                                                                                                                                        • ConocoPhillips
                                                                                                                                                                                                                          • Emo
                                                                                                                                                                                                                            • Exxon Mobil Corporation
                                                                                                                                                                                                                              • Maxol Group
                                                                                                                                                                                                                                • TOP Oil
                                                                                                                                                                                                                                  • TOPAZ Energy Group Limited
                                                                                                                                                                                                                                  • Buyers

                                                                                                                                                                                                                                    • Key points
                                                                                                                                                                                                                                      • Transport and homes drive energy demand
                                                                                                                                                                                                                                          • Figure 57: Total final consumption (TFC) of energy by sector (%), RoI, 2001-08
                                                                                                                                                                                                                                        • People not industry drive energy demand
                                                                                                                                                                                                                                          • Figure 58: Detailed breakdown of total final consumption (TFC) of energy by sector (% of ktoe), RoI, 2008
                                                                                                                                                                                                                                        • Domestic demand of greater importance in NI
                                                                                                                                                                                                                                          • Figure 59: A comparison of the broad user groups of total final consumption (TFC) in RoI, NI and UK, 2008
                                                                                                                                                                                                                                      • Appendix – Energy Demand and Supply

                                                                                                                                                                                                                                          • Figure 60: Primary energy requirement excluding non-energy (ktoe) in RoI. by type of fuel and use, 2001-08
                                                                                                                                                                                                                                          • Figure 61: Primary energy requirement excluding non-energy (ktoe) in RoI, by type of fuel and user group, 2001-08
                                                                                                                                                                                                                                          • Figure 62: End user energy consumption in NI (ktoe), by type of fuel, 2005-08
                                                                                                                                                                                                                                          • Figure 63: Retail pump prices for petroleum products, 2005-09
                                                                                                                                                                                                                                          • Figure 64: The domestic electricity rate for home businesses in RoI (quoted tariff for ESB), October 2009

                                                                                                                                                                                                                                      Companies Covered

                                                                                                                                                                                                                                      To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                                                      Energy Costs (Industrial Report) - Ireland - January 2010

                                                                                                                                                                                                                                      US $1,098.01 (Excl.Tax)