Spanish energy group Iberdrola plans to pull the plug on its Irish electricity and gas supply businesses, hitting up to 32,000 homes.
Iberdrola confirmed on Tuesday that it would make a “controlled exit” from the retail energy supply business here following an internal review.
The company blamed market conditions and prices, aggravated by an unprecedented increase in global wholesale energy costs, for the move.
According to a statement, industry watchdog, the Commission for the Regulation of Utilities (CRU), will transfer gas customers to Bord Gáis Energy and electricity customers to ESB subsidiary Electric Ireland.
The great Guinness shortage has lessons for Diageo
Ireland has won the corporation tax game for now, but will that last?
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Elf doors, carriage rides and boat cruises: Christmas in Ireland’s five-star hotels
Iberdrola has about 32,000 Irish customers, mostly residential, with a handful of small businesses.
The company pledged to ensure an easy transition for customers and said their energy supplies would not be interrupted.
“Despite our best efforts, it’s become increasingly clear that the dynamics and pricing within the Irish energy supply market mean we will not be able to achieve what we want for our retail business in Ireland,” said a spokesman.
Daragh Cassidy of price comparison website, bonkers.ie, warned that other energy suppliers could follow Iberdrola.
He blamed the Republic’s high electricity prices, which are the fourth most expensive in the EU.
“These higher prices aren’t due to a lack of competition among suppliers, but rather higher costs and inefficiencies with generating electricity in Ireland, as well as the costs of transitioning to renewables,” Mr Cassidy pointed out.
Another supplier, Bright Energy, left early this year, while Glowpower stopped taking on new customers.
Iberdrola’s customers do not need to take any action themselves as they will transfer to Bord Gáis Energy or Electric Ireland automatically, the CRU confirmed.
The regulator said former Iberdrola customers will be able to choose to switch to an alternative suppliers themselves after a short standstill period with either Bord Gáis or Electric Ireland.
Bord Gáis said there was a “well-planned” process in place for customers where energy suppliers close or cease trading in the Republic.
Iberdrola said it still intends building offshore wind farms off the Irish coast in partnership with DP Energy. Those power plants will have the capacity to supply 3,000 megawatts of electricity to the wholesale market.
