A THIRD energy supplier has announced it is leaving this market.
Spanish energy supplier Iberdrola said it is exiting the Irish gas and electricity retail market.
It comes after Bright Energy and Glowpower pulled out of the Irish market in the past few months, due to surging wholesale energy costs.
And all the main suppliers have put through double-digit price rises for consumers this year, after 35 separate increases last year.
Iberdrola said the move is the result of an internal strategic review that found market conditions and pricing were a barrier to its planned growth and ambitions in Ireland.
It said the situation has been exacerbated in recent months by the unprecedented increase in global wholesale energy costs.
The business said the exit will be “controlled” and it has formally notified the Commission for Regulation of Utilities about its decision.
Iberdrola said the regulator has been asked to initiate the automatic transition of Iberdrola customers’ gas and electricity accounts to its designated suppliers.
Gas customers will be moved to Bord Gáis Energy while electricity customers will be transitioned to Electric Ireland.
A spokesperson for Iberdrola’s retail business in Ireland said: “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.
“Without the ability to achieve long-term customer growth on both a competitive and commercial basis, we’ve made the difficult decision to leave the supply market in a controlled, responsible and appropriate manner, with minimum impact on our customers.
“We’ll 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 last three years.”
Daragh Cassidy, of price comparison site Bonkers.ie, said at one stage there were 14 residential energy suppliers in Ireland, a huge number given the small size of the market. “So exits and consolidation were always likely,” he said. “As with previous casualties, Iberdrola struggled to gain a large market share, and the recent energy crisis would only have exacerbated things.”
Just Energy also exited the Irish market in mid-2019.