Third energy supplier withdraws from this market

A THIRD energy supplier has announced that it will leave this market.

Spanish energy company Iberdrola announced it is exiting the Irish gas and electricity retail market.

It comes after Bright Energy and Glowpower pulled out of the Irish market in recent months due to rising wholesale energy costs.

And all major suppliers have pushed through double-digit price increases for consumers this year, after 35 separate hikes last year.

Iberdrola said the move is the result of an internal strategic review which found market conditions and pricing to be an obstacle to planned growth and ambitions in Ireland.

The situation has been exacerbated in recent months by unprecedented increases in global wholesale energy costs.

The company said the phase-out would be “controlled” and has officially informed the Commission on Utilities Regulation of its decision.

Iberdrola said the regulator had been asked to initiate the automatic transfer of Iberdrola customers’ gas and electricity accounts to the designated suppliers.

Gas customers will be moved to Bord Gáis Energy while electricity customers will switch to Electric Ireland.

A spokesman for Iberdrola’s retail business in Ireland said: “Despite all efforts, it is becoming increasingly clear that the dynamics and pricing in the Irish utility market mean we will not be able to achieve what we believe to be the case for our retail business in Ireland want.

“Without the ability to deliver long-term customer growth on both a competitive and commercial basis, we have made the difficult decision to exit the utility market in a controlled, responsible and proportionate manner with minimal impact to our customers.

“We will be working closely with the CRU, Gas Point Registration Operator and Meter Registration System Operator to ensure a smooth and seamless transition for our customers and we thank each and every one of them for their support over the past three years.”

Daragh Cassidy of price comparison site Bonkers.ie said Iberdrola is the second operator to leave the Irish market in recent months, following Bright’s exit earlier in the year.

Another utility, Glowpower, has not been taking on new customers for several months and its future in Ireland remains highly uncertain.

At one point there were 14 residential energy suppliers in Ireland, which is an enormous number given the small size of the Irish market. So exits and consolidations are always likely, he said.

“As with previous victims, Iberdola struggled to gain a large share of the market and the recent energy crisis would have only made things worse,” Cassidy said.

In mid-2019, Just Energy also exited the Irish market.

https://www.independent.ie/business/personal-finance/third-energy-supplier-pulls-out-of-this-market-41706140.html Third energy supplier withdraws from this market

Fry Electronics Team

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