Irish wholesale gas prices were 35% lower in August than the same month last year, according to the latest energy market report from Vayu Energy.

Gas prices were down 10% month-on-month, as demand hit its lowest point in 2016.

Vayu, which accounts for 20% of the country's industrial and commercial market's gas supply, cited oversupply and poor demand for the price collapse.

The average day-ahead price for gas – the contract for gas delivery tomorrow – is 1.25c/kWh (cents per kilowatt hour) for August so far. This compares with an average price of 1.90c/kWh in August 2015.

Vayu's Senior Energy Analyst Gillian Lawler commented:

"Updated storage figures show European stocks are extremely healthy. In addition, the recent update from Centrica that its Rough storage facility, which houses 70% of the UK’s storage capacity, will have 20 wells available for withdrawals from November 1st is also good news.

"This accounts for two thirds of wells at the facility, a significant improvement to earlier expectations of just 4 wells being available to year end."