SSE Airtricity, Northern Ireland's prominent natural gas provider, has witnessed a substantial surge in natural gas prices over a period, resulting in a cumulative price increase of 129%. However, a deeper analysis using real compound calculations unveils a staggering 198% increase.
The journey began in January 2020 when the price of natural gas on global markets stood at approximately 1.684 USD. Over the course of the next year, prices remained relatively stable, fluctuating within a range of 1.684 to 2.771 USD. However, come March 2021, a drastic shift was observed.
Between March 2021 and August 2022, SSE Airtricity experienced a significant escalation in natural gas prices. The Nat gas global market costs soared, reaching a peak of 9.127 USD in August 2022. This period marked a substantial spike in prices, impacting both the supplier and consumers.
In response to the escalating costs, SSE Airtricity decided to increase the natural gas prices for consumers, reflecting the global trend of rising energy prices.
Following this period of surging prices, natural gas costs gradually started to decrease, prompting SSE Airtricity to reduce prices for consumers. Although in 2021 ans 2022 SSE applied 5 substantial price increases starting from April 2023 implemented a single reduction. By September 2023, prices had been reduced by 12.2%, providing insignificant relief to the consumers.
In cumulative terms, the natural gas prices over this period reflected a 129% increase. However, when examined through a real compound lens, the impact was even more profound, reaching a staggering 198% surge. This real compound increase sheds light on the true magnitude of the challenges faced by its consumers.
| Date of price changed | Increase or decrease of gas price | Cumulative | Real, Compounded increase in Gas price |
| 02-Jun-23 | -12.20% | +129% | 198% |
| 01-Apr-22 | +39% | +141% | 240% |
| 01-Jul-22 | +42.70% | +103% | 145% |
| 01-Oct-22 | +28.30% | +60% | 72% |
| 01-Oct-21 | +21.80% | +32% | 34% |
| 01-Apr-21 | +9.80% | +10% | 10% |
The table below displays the prices of natural gas in various global markets. If you take a look, you'll see that the price of natural gas only went up from May 2021 to January 2022, which is about 19 months. As of now, the price of natural gas is back to where it was before 2019. SSE is simply another company that values their profits more than they do their consumers.
