GAS AND electricity prices for Irish businesses fell by an average of 15 per cent or more in the first half of 2009, compared with a 2 per cent increase across the EU, according to a report by Government-funded Sustainable Energy Ireland (SEI).

Energy prices for Irish businesses remain above the European average, although the gap in prices is closing.

Electricity prices for medium-sized businesses in Ireland have fallen to 15 per cent above the EU average in the second half of last year from 38 per cent above average in the second half of 2008.

Gas prices for the smallest customers in Ireland were 13 per cent above the EU average but 7-10 per cent below the average for medium-sized gas consumers.

Household electricity prices rose by almost 15 per cent in the first half of 2009, leaving domestic prices 22 per cent above the EU.

However, adjusting for cost of living differences, Irish domestic electricity prices were 4 per cent above the EU average and below the average for high-volume users.

Taking cost of living differences into account, SEI said that Ireland was cheaper for domestic gas, ranging from 15 per cent to 30 per cent below the EU average.

“Prices are still higher than we would wish, and we must press to increase the deployment of renewable sources of energy,” said SEI chief executive Prof Owen Lewis.

“We must reduce our dependence on imported energy and the associated volatile global prices.”

Household energy prices have reduced further since mid-2009 with new competition opening up for the domestic market, he said.

“We expect to see further improvements in prices for homeowners,” he said.