Ireland’s energy provider Bord Gáis Energy warned that energy prices are expected to rise later this year as higher costs cancel out the dampening effect of last month’s sell-off in the commodity markets. The anticipated rise in gas prices will also push up electricity prices. While the wholesale price of gas increased in May, wholesale oil, coal and electricity prices all fell. Overall wholesale energy prices fell 5%, according to the Bord Gáis Energy Index, but remained 27% higher than a year ago. Bord Gáis Energy trading analyst Michael Kelleher attributes the fall in the index to the broad-based sell-off in commodity markets following weak economic data in the US and fears surrounding inflation in China. “Futures markets are predicting relatively stable prices for the remainder of the summer, but a return to higher prices in the fourth quarter of this year. This is primarily due to expected higher natural gas prices,” he said. Gas prices in Europe are mostly linked to the oil prices that prevailed six months earlier. With oil prices exceeding US$100/bbl in the first and second quarters of 2011, gas prices in Europe are expected to advance in 2H2011. As gas is one of the key fuels used in power generation in Ireland, analysts envisage a rise in power prices in the green isle

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