The stoppage of transporting 15 billion cubic meters of Russian gas through Ukraine means Europe will have to depend more on liquefied natural gas (LNG) from around the world. This change makes Europe vulnerable to the ups and downs of global energy markets, where prices can change due to how much gas is available, how much is needed, political issues, and other worldwide events. Earlier this year, Europe faced another problem when Norway's Hammerfest LNG plant, a key supplier of LNG, had to stop operations temporarily because a compressor broke down. This reduced the amount of LNG available, showing how difficult it is for Europe to maintain a steady energy supply in a world where political situations are constantly changing.

 

Russian gas transport to Europe through Ukraine ends

The transportation of Russian gas to Europe through Ukraine has ceased, as confirmed by both nations, concluding a long-standing agreement and representing another consequence of the conflict between the two neighbours.

Since the dissolution of the Soviet Union in 1991, Russian gas has been delivered to Europe through pipelines in Ukraine, a setup that provided financial benefits to Moscow from gas sales and to Kyiv from transit fees.

The most recent transit agreement has now lapsed, with Ukraine choosing not to renew the contract following Russia's invasion in 2022.

 

 

What does this mean for Europe?

Since the beginning of 2024, wholesale electricity and gas prices in Ireland have decreased by 10%, following a 50% drop in 2023. This came after a challenging year in 2022 when prices tripled due to Russia's invasion of Ukraine and Europe's decision to stop purchasing natural gas from Russia. Consequently, electricity and gas prices have been very high for both businesses and consumers.

Conflict, climate, and global politics influence the cost of energy in Ireland. Although these events occur at a distance, an intensification of the ongoing conflict between Israel and Iran could also affect the prices we pay to heat and run our businesses this winter.

 

As a business owner in Ireland, you wear many hats. From managing daily operations to planning long-term strategies, there's no shortage of responsibilities. Among these, understanding electricity rates might not seem like the most thrilling task on your to-do list, but it certainly deserves a spot. This blog post aims to demystify electricity rates in Ireland, providing insights that could help you make informed decisions for your business.

Here at EnergyBroker we consider a Large Energy User to be any business where electricity is metered half hourly and gas is measured daily. LEU contracts can be fixed or variable. Deciding on what option to take often depends on the level of energy expertise within an organisation.

Businesses vary greatly in size and scope. Consequently, suppliers categorise their corporate clients into two groups: (i) small and medium energy users and (ii) large energy users.