Irish energy costs fell to negative figures for the first time as a combination of low demand and high wind energy generation saw the spot price of electricity fall to a minus figure.

The market price for electricity is set on a half-hourly basis and the method for calculating it has been in operation for three years since the creation of the All Island Single Electricity Market. In these three years, this is the first time that a negative figure has occurred.

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Bryan Hennessy, Head of Regulation with VAYU, one of Ireland's leading business to business energy suppliers, explained that the phenomenon was likely to have been caused by a lower than forecast demand in conjunction with a higher than normal wind generation. The cause of the phenomenon will be studied in greater detail in the weeks ahead.

While the negative price will be purely notional for most users, VAYU customers will receive the full benefit of the price drop and will receive payment for the energy they consumed during that period.

Mr Hennessy said: "It was precisely to exploit low and in this case negative wholesale market prices that VAYU created its unique product range. Customers of VAYU will receive payment in respect of power consumed during this period. As an innovative customer champion, we look forward to developing new products that meet the evolving needs of Irish industry."

(CD)