Energy provider Panda Power confirms exit from Irish market

 Panda Power said it had made its decision due to “unsustainable price increases in the wholesale energy market”.

Panda Power has confirmed it will leave the Irish energy market, in a move set to affect around 60,000 customers.

The company said it had made the decision due to “unsustainable price increases in the wholesale energy market”.

In a statement, it said that it wanted to reassure customers there would be no disruption to their energy supply, and they’ll have the chance to choose a new supplier up to and including September 28, in less than two weeks’ time.

Automatic transfer

Customers who don’t switch in that time will automatically transfer to Electric Ireland for their electricity and Bord Gáis Energy for gas from September 30, under the energy regulator’s Supplier of Last Resort Mechanism.

Those with discounted rates at Panda may see big rises in their bills if this automatic switch happens, as they’ll be put on regular tariffs with Electric Ireland and Bord Gáis.

A spokesperson said: “The international energy market is facing unprecedented challenges, with wholesale energy costs having risen to unsustainable levels.

“Over recent months Panda Power has examined all possibilities of absorbing additional cost internally and minimising customer price increases. Despite our best efforts, this is no longer possible, and we cannot justify imposing on customers the substantial price increases now necessary.

“We have therefore reluctantly made the decision to leave the Irish electricity and gas market in an appropriate manner, with the least possible impact on our customers.” 

Staff to be redeployed

 Panda Power, which is part of the larger Beauparc Utility Group, added it has guaranteed there will be no compulsory redundancies as part of this process. It said it would work with all affected employees to redeploy them.

Its departure makes Panda the fourth energy supplier to leave the Irish market this year following the exits of Glowpower, Bright Energy, and Iberdrola.

Speaking ahead of its departure, Bonkers.ie’s head of communications Daragh Cassidy said that Panda is “by far the biggest victim”.

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

“It’s likely more suppliers will fall over the coming months. Regardless of the energy crisis, the Irish market probably has several more suppliers than it can profitably sustain over the long-term.”