The Bord Gáis Energy Index (BGEI), an Irish-specific index designed to measure the prices in the wholesale energy market, increased by 2% in September to 111.

However the Energy Index would have reached a two year high if currency movements had not absorbed the increased prices in most of the commodities.

The strengthening Euro against the US dollar and sterling prevented the energy index from reaching 117, a level not seen since October 2008. The largest movement was by oil which increased by 10% ($7.67) in September.

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The index is designed to track movement in the wholesale energy market and comprises the four key energy commodities of oil, gas, coal and electricity. The index tracks the monthly price movements of these commodities, factoring in any currency shifts, and producing an overview and insight into the energy sector. Commenting on the BGEI, Michael Kelleher, Energy Trading Analyst at Bord Gáis Energy, said: "September saw considerable movements in some of the key commodities, especially oil. However, a strong Euro cushioned the index from a two year high to a more modest 2% increase. The advent of winter is already having an effect on the index with electricity prices increasing as a result of the darker nights.

"Currency movements will continue to have a major effect on Energy index movements – the inverse relationship between the US Dollar and oil prices was again evident in the back end of September."

(CD)