Fears Panda Power could exit energy market 

Panda power are falling victim to the rising costs of wholesale electricity and gas prices. Picture: Leah Farrell/RollingNews.ie

The energy regulator has confirmed it is “engaging with a supplier” on its participation in the market, amid reports that Panda Power could become the fourth energy supplier to leave the market this year.

Up to 60,000 households could be affected if Panda were to exit. The move comes amidst huge increases in wholesale gas and electricity costs, with Panda Power likely to follow Glowpower, Bright Energy, and Iberdrola out of the Irish market.

It is understood the current talks with the regulator are being made with a view to enter the 'supplier of last resort' mechanism, which would see customers automatically switched over to other suppliers without losing service.

A further shrinkage in the market here would mean households have fewer options when it comes to switching suppliers in a bid to try to reduce their energy costs heading into the winter.

As with all the other suppliers, Panda Power had recently hiked its prices, with a €287 increase to the average annual electricity bill and a €412 increase to gas bills coming into effect on August 25. 

"While we have done our best to absorb these costs, regrettably the decision to increase prices is unavoidable at this time," the company said, in announcing the price rise. 

However, concerned customers seeking to clarify the situation yesterday were reassured by the energy supplier that no changes are being made to their accounts.

One customer who rang the supplier said they have been left wondering “what is true” after they contacted the supplier, and they “stated that this is wrong” in reference to reports they would be leaving the market.

Panda has been contacted for comment. There was no information on its website Tuesday, indicating it would be leaving the market.

As per the regulatory process in place from the Commission for Regulation of Utilities (CRU), when a company leaves no one is left without power as a result.

Under the 'supplier of last resort' mechanism, Panda’s customers would be switched to Electric Ireland for electricity and Bord Gáis Energy for gas.

However, customers who may have been on discounted tariffs with Panda may find that their bill increases significantly when they’re switched to another supplier’s standard rate.

Daragh Cassidy, head of communications at Bonkers.ie, said it wouldn’t be wholly surprising to see another company leave “given the carnage on energy markets right now”.

Panda had no electricity generation assets so it was highly exposed to the rapidly rising price of gas and electricity on wholesale markets.

“Panda [would be] the fourth supplier to exit the Irish market in the space of a few months following Glowpower, Bright Energy, and Iberdrola. However, Panda is by far the biggest victim.” 

Mr Cassidy said it’s likely “more suppliers will fall over the coming months”.

He added that putting a windfall tax on energy companies “needs to be carefully considered and targeted to ensure it doesn’t cause more carnage” in the market.

“That’s not to say we shouldn’t seek to tax the energy market more,” he said. “But there are no easy solutions.”