A 9% increase in oil prices and a 20% increase in gas prices pushed the Bord Gáis Energy Index up 8% in February. The combination of rising geopolitical tensions, supply constraints, rising energy demand, a weaker US Dollar and improving market confidence, resulted in the price of a barrel of Brent oil hitting an all time record in euro terms during the month. Gas prices also rose dramatically due to the severe winter weather experienced across Continental Europe. As a result, prices hit levels not seen since 2006. The Bord Gáis Energy Index now stands at a record high for the Index of 157.

1. Bord Gáis Energy Index
February 2012

2. Bord Gáis Energy Index
FEBRUARY 2012
THE BORD GÁIS ENERGY INDEX INCREASES 8% IN FEBRUARY
– INDEX 11% HIGHER THAN IN FEBRUARY 2011 –
Bord Gáis Energy Index (Dec 31st 2009 = 100) OVERALL SUMMARY:
12 Month Rolling
The Bord Gáis Energy Index rose 8% in
Energy
Average
Index Graph
Data 31 October 2009 87.80
31 January 2009 92.10
Bord Gáis Energy Index
30 November 2009 87.15
12 Month Rolling Average the month with record oil and gas prices
180
28 February 2009 87.77
being recorded. A confluence of perfect
31 December 2009 88.29
31 March 2009 76.86
31 January 2010 88.92
30 April 2009 77.63
31 May 2009
30 June 2009
84.37
90.81
28 February 2010
31 March 2010
90.20
92.51
factors from geopolitical tensions, supply
31 July 2009
31 August 2009
88.62
88.35
30 April 2010 95.31 constraints, rising demand, a weaker US
30 September 2009
31 October 2009
85.76
92.39
31 May 2010
30 June 2010
97.49
99.22
Dollar and improving market confidence,
resulted in the price of a barrel of Brent
140
30 November 2009 94.82
31 July 2010 101.09
31 December 2009 100.00
oil hitting an all time record in euro terms.
31 January 2010 99.62 31 August 2010 102.82
28 February 2010 103.17 30 September 2010 104.97
Points
Gas prices rose dramatically early in the
31 March 2010 104.57
31 October 2010 106.66
30 April 2010 111.22
31 May 2010 110.49 30 November 2010 108.89
30 June 2010
31 July 2010
111.64
111.05
31 December 2010 111.88 month due to severe winter weather across
31 August 2010 109.16
31 January 2011 114.76
continental Europe and prices hit levels not
100
30 September 2010 111.50 28 February 2011 117.91
31 October 2010
30 November 2010
112.64
121.67
31 March 2011 121.41
seen since 2006.
30 April 2011 124.45
31 December 2010 135.86
31 January 2011 134.21 31 May 2011 126.97
28 February 2011 140.96 30 June 2011 128.88
31 March 2011 146.51
31 July 2011 131.18
30 April 2011 147.76
31 May 2011 140.73 31 August 2011 133.64
60
30 June 2011 134.54 30 September 2011 135.59
31 July 2011 138.57
31 October 2011 137.54
31 August 2011 138.69
30 September 2011 134.89 31 November 2011 139.53
31 October 2011 136.14 Jan-09 Apr-09 Jul-09
31 December 2011
Oct-09 Jan-10
140.15
Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12
31 November 2011 143.88
31 January 2012 141.01
31 December 2011 143.22
31 January 2012 144.43 31 February 2012 142.38
31 February 2012 156.81
1 Mth 8% 3 Mth 9% 12 Mth 11%
During 2011, despite record global demand and uncertainties over supplies from North Africa and the Middle East due to the
Arab Spring, Brent oil appeared unable to break out of the $100-$120 range for any length of time. However, in February, oil
prices increased by nearly $12 and closed above the significant $120 a barrel price for 9 days. Cold weather and worries over
the reliability of Russian gas supplies sent European, and in turn, UK traded gas prices soaring early in February to above £1 a
therm. These prices did ease to more normal levels as the weather and supplies improved but the monthly average price out
turned 20% higher month on month following a very mild January.
Oil Index OIL
Oil Graph
As tensions between the West and Iran over
180
Data
31 January 2009
28 February 2009
65.78
67.03 its nuclear programme escalated in February,
oil prices hit new record highs in euro and
31 March 2009 68.43
30 April 2009 70.72
31 May 2009 85.34
30 June 2009
31 July 2009
90.70
92.57
British Pound terms. Oil began the month at
$111 and ended it at $123 and hit a nine month
31 August 2009 89.31
30 September 2009 86.74
140
31 October 2009 93.84
30 November 2009
31 December 2009
96.36
100.00
high of $125.
31 January 2010 94.62
Points
28 February 2010
31 March 2010
30 April 2010
104.90
112.38
121.16
There were a number of events which suggest
31 May 2010
30 June 2010
111.65
112.54
to the market that the possibility of a military
31 July 2010
31 August 2010
110.19
108.17 engagement with Iran is a little more likely.
100 Fears that this would disrupt global supplies
30 September 2010 111.13
31 October 2010 109.88
30 November 2010 121.18
31 December 2010
31 January 2011
130.36
135.62 of oil and gas pushed prices up. Firstly,
Iran made an unexpected announcement
28 February 2011 149.07
31 March 2011 152.09
30 April 2011 156.15
31 May 2011
30 June 2011
149.41
142.55
that it was to halt oil exports to British and
60 French companies. Secondly, inspectors
31 July 2011 149.27
31 August 2011 146.57
30 September 2011 140.51
31 October 2011
31 November 2011
144.47
151.05 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 were refused access to nuclear facilities.
31 December 2011
31 January 2012
152.25
155.87
Thirdly, a UN report claimed that Iran has
*Index adjusted for currency movements.
31 February 2012 169.16
Data Source: ICE sharply increased its production of enriched
uranium. Suspicion remains that there is a
possible military dimension to Iran’s nuclear
1 Mth 9% 3 Mth 12% 12 Mth 14%
programme.
Economic releases continue to suggest that
the global economy is recovering slowly and
this also supported oil prices.

3. Bord Gáis Energy Index
FEBRUARY 2012
Natural Gas Index NATURAL GAS
Due to the severe weather experienced
250
Natural
Gas Graph
in Europe and concerns over Russian gas
Data
31 January 2009 195.04
28 February 2009
31 March 2009
156.23
99.24 supplies, in the first week of February, Day-
ahead prices hit their highest level in more
30 April 2009 92.78
31 May 2009 87.00
200
30 June 2009 87.56
31 July 2009
31 August 2009
76.34
69.43
than 6 years on the UK gas trading hub
30 September 2009
31 October 2009
61.72
77.55
83.21
at over £1 a therm. The Day-ahead price
remained high during the exceptional cold
30 November 2009
31 December 2009 100.00
Points
31 January 2010 125.88
snap that saw an increase in demand for
150
28 February 2010 114.44
31 March 2010 101.67
gas-fired heating and which tested supplies.
30 April 2010 106.04
31 May 2010 130.73
30 June 2010 145.29
31 July 2010
31 August 2010
157.48
145.96 During this period, continental Europe
sought exports from the UK to compensate
30 September 2010 132.67
31 October 2010 148.57
30 November 2010
31 December 2010
31 January 2011
167.11
204.87
188.31
100 for reduced deliveries from the east and
prices escalated.
28 February 2011 179.74
31 March 2011 194.03
30 April 2011 181.39
31 May 2011 184.99
30 June 2011 183.36
The average Day-ahead gas price in February
50
31 July 2011 179.36
31 August 2011
30 September 2011
172.82
180.07 when compared to January was up 20%.
31 October 2011 180.16
Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12
As temperatures improve, prices at the
31 November 2011 191.53
31 December 2011 189.94
31 January 2012 184.35
*Index adjusted for currency movements.
31 February 2012 221.68
Data Source: Spectron Group UK trading hub did ease back to levels
between 57–60 p a therm with demand but
conservation of stock levels, declining LNG
1 Mth 20% 3 Mth 16% 12 Mth 23% deliveries to the UK and storage facility
outages, continued to support prices.
Coal Index Coal
European coal prices fell 7% in February
Coal Graph
Data 260 as stockpiles at European generators and
31 January 2009 102.58 discharge terminals remained high. Indeed,
because of the high coal stocks, European
28 February 2009 93.02
31 March 2009 82.80
30 April 2009 78.58
prices failed to react at all to the severe weather
205
31 May 2009 76.19
30 June 2009 76.68
31 July 2009
31 August 2009
81.48
84.15 early in February. This was in stark contrast to
natural gas which absorbed much of the shock
30 September 2009 83.00
31 October 2009 86.26
30 November 2009 88.54
because of the lack of supplies from Russia.
Points
31 December 2009 100.00
31 January 2010 105.77
28 February 2010
31 March 2010
95.28
95.51
150 A strengthening energy commodities market
and improving economic sentiment also failed
30 April 2010 108.11
31 May 2010 125.06
30 June 2010 132.03
31 July 2010
31 August 2010
121.85
123.28
to put any upward pressure on prices.
30 September 2010 121.29
95 During the month, coal prices fell to a 16
31 October 2010 121.83
30 November 2010 150.34
31 December 2010
31 January 2011
159.48
148.31 month low to trade below $100/mt for most
of the month. Prices have been falling steadily
28 February 2011 149.34
31 March 2011 153.91
30 April 2011 148.29
31 May 2011 145.75
since September when they were trading at
40
30 June 2011 144.90
31 July 2011
31 August 2011
147.62
149.65 over $126/mt. It is felt that the market would
Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 require one to two months of sustained cold
30 September 2011 156.20
31 October 2011 145.04
31 November 2011 142.82
31 December 2011
31 January 2012
145.65
134.66 *Index adjusted for currency movements. weather to erode stocks sufficiently to put
31 January 2012 125.54 Data Source: ICE
upward pressure on prices but this is now
unlikely given that the winter is behind us.
1 Mth -7% 3 Mth -12% 12 Mth -16% There were also no palpable signs that Chinese
buyers were back in the markets during
February following the country’s Lunar New
Year festivities.
Electricity Index
Electricity
Graph Data
180
ELECTRICITY
31 January 2009
28 February 2009
127.36
117.38 Irish wholesale electricity prices were 5%
higher in February compared to January.
31 March 2009 89.56
30 April 2009 88.58
31 May 2009 82.33
30 June 2009
31 July 2009
91.74
83.00 A combination of higher gas (with the
average monthly Day-ahead price rising
31 August 2009 89.26
140
30 September 2009 87.28
31 October 2009 91.82
30 November 2009
31 December 2009
93.65
100.00 20% in euro terms) and carbon (with the
Points
average monthly price up approx 20% in
31 January 2010 105.32
28 February 2010 98.50
31 March 2010 90.42
30 April 2010
31 May 2010
93.24
105.19 the month) prices, increased wholesale
electricity prices.
30 June 2010 104.88
106.05
100
31 July 2010
31 August 2010 105.66
30 September 2010 109.05
31 October 2010
30 November 2010
31 December 2010
112.69
115.75
136.21
As the majority of electricity used in Ireland
31 January 2011
28 February 2011
123.78
120.12
is produced by burning gas, internationally
31 March 2011
30 April 2011
31 May 2011
129.24
127.27
118.10
traded gas prices heavily influence Irish
wholesale electricity prices.
60
30 June 2011 112.46
31 July 2011 112.53
31 August 2011 118.86
Despite the significant increase in the cost
30 September 2011 117.61
31 October 2011 114.14 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12
31 November 2011 123.77
31 December 2011
31 January 2012
119.63
117.47 Data Source: SEMO
of producing electricity, wholesale prices
were restrained somewhat due to subdued
31 February 2012 125.14
demand as a result of mild weather in
1 Mth 5% 3 Mth 1% 12 Mth 4% Ireland.

4. Bord Gáis Energy Index
FEBRUARY 2012
FX Rates FX RATES
31 January 2009
EUR/USD
1.283 31 January 2009
EUR/GBP
0.887 During February, the euro gained against
1.60
28 February 2009
31 March 2009
1.272
1.323
28 February 2009
31 March 2009
0.886
0.925 most major world currencies including
30 April 2009 1.321
30 April 2009
31 May 2009
0.894
0.874
the British Pound and US Dollar. Given the
currency movements observed, it would
31 May 2009 1.412
30 June 2009 0.853
1.40
30 June 2009 1.405
31 July 2009 0.853
31 July 2009
31 August 2009
1.424
1.434
31 August 2009
30 September 2009
0.881
0.914
appear that the markets perceive that,
30 September 2009
31 October 2009
1.464
1.474
31 October 2009
30 November 2009
0.896
0.913
although not resolved, progress has been
1.20
30 November 2009
31 December 2009
1.498
1.433
31 December 2009
31 January 2010
0.888
0.867
made toward dealing with the sovereign
31 January 2010 1.389 28 February 2010
31 March 2010
0.893
0.891
credit crisis in Europe. This perception was
boosted in the month following agreement
28 February 2010 1.360
30 April 2010 0.868
1.00
31 March 2010 1.353
31 May 2010 0.846
30 April 2010
31 May 2010
1.327
1.230
30 June 2010 0.819 from Brussels to provide Greece with an
31 July 2010 0.831
30 June 2010
31 July 2010
1.226
1.305
31 August 2010 0.827 additional bailout worth €130 billion.
30 September 2010 0.866
0.80
31 August 2010
30 September 2010
1.269
1.362
31 October 2010
30 November 2010
0.869
0.837 Despite the euro hitting a 16 month low
of 1.27 versus the US Dollar on the 16th
31 October 2010 1.392 31 December 2010 0.857
30 November 2010 1.304 31 January 2011 0.854
31 December 2010 1.337 28 February 2011 0.849
of January, the currency has rebounded
0.60
31 January 2011
28 February 2011
1.370
1.379
31 March 2011
30 April 2011
0.883
0.888
to close at 1.33 versus the US Dollar on
31 March 2011 Jan-09
1.419 Apr-09 Jul-09 Oct-09 Jan-10
31 May 2011 0.874 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11 Oct-11 Jan-12
30 April 2011 1.483
30 June 2011
31 July 2011
0.903
0.875
29 Feb. In fact, the US Dollar weakened
against most major currencies in February
31 May 2011 1.437
31 August 2011 0.885
30 June 2011 1.451
30 September 2011 0.860
31 July 2011
31 August 2011
1.438
1.441
31 October 2011
31 November 2011
0.8615
0.8562
and this decline tends to boost the allure
30 September 2011
1 Mth
31 October 2011
1.345
2%
1.395 3 Mth
31 December 2011
31 January 2012 -1%
0.8334
0.8302 12 Mth -3% EURUSD of investments priced in US Dollars,
31 November 2011
31 December 2011
1.3446
1.2961
31 February 2012 0.8372
including oil. Increasing risk appetite and a
1 Mth 1% 3 Mth -2% 12 Mth -1% commitment from the US Federal Reserve
EURGBP
31 January 2012 1.3084
to keep interest rates low is weighing on
31 January 2012 1.3325
the US Dollar.
Market Outlook:
With oil prices rising $12 during February, Governments and institutions are starting to raise concerns for the first time about
the effect this may have on consumer spending (particularly in the US and particularly in the year of a presidential election),
the fragile economic growth and inflation. During the month, European inflation accelerated 2.7% and estimates are for
the euro-region economy to shrink moderately in 2012. Rising energy costs threaten to weaken the region’s economy by
reducing the purchasing power of companies and consumers. Despite these concerns, oil prices will continue to be driven
mainly by the market’s perception of tensions between the West and Iran and the likelihood or otherwise of a military
engagement. Supply/demand dynamics and developments in foreign exchange will continue to influence prices. Markets
will also continue to monitor the state of the world’s major economies through economic releases which have been generally
positive so far in 2012.
In terms of gas prices, markets will be hoping for greater deliveries of LNG to Britain and increased supplies of gas from
storage to the market.
re-weighting of bord gáis energy index:
Following the SEAI’s 2009 review of energy consumption in
Ireland, released in Q4 2010, there was a 9.3% drop in overall Oil 64.93%
energy consumption. The most notable drop of 1.39% was in oil
consumption in the form of gasoline and diesel. This reflects the
economic downturn experienced at the time. The share of natural Gas
gas and electricity increased by 0.63% and 0.57% respectively. An 13.52%
increase in the use of renewables and peat, at the expense of coal in
electricity generation was also observed. As a result the Bord Gáis
Energy Index has been reweighted to reflect the latest consumption Electricity Coal
data. This has had a minimal effect on the overall shape of the Index, 18.40% 3.16%
but may indicate future trends.
For more information please contact: Fleishman-Hillard — Aidan McLaughlin — 085 749 0484
Bord Gáis Energy — Christine Heffernan — 087 050 5555
Disclaimer:
The contents of this report are provided solely as an information guide. The report is presented to you “as is” and may or may
not be correct, current, accurate or complete. While every effort is made in preparing material for publication no responsibility
is accepted by or on behalf of Bord Gáis Eireann, the SEMO, ICE Futures Europe, the Sustainable Energy Authority of Ireland
or Spectron Group Limited (together, the “Parties”) for any errors, omissions or misleading statements within this report. No
representation or warranty, express or implied, is made or liability accepted by any of the Parties or any of their respective
directors, employees or agents in relation to the accuracy or completeness of the information contained in this report. Each of the
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