'No indication' more energy suppliers will leave the Irish market

Energy last month unveiled measures aimed at supporting households heading into the winter, including an extension of the winter moratorium on disconnections, and ensuring customers on financial hardship metres are put on the cheapest tariffs. Picture: Yui Mok/PA Wire

The energy regulator has told an Oireachtas Committee there is “no indication” another supplier will leave the Irish market in the near future, and said its measures to support households facing huge energy bills this winter must “strike a balance”.

Furthermore, the regulator said it had no role to investigate the standing charges facing consumers, after reports energy companies have hiked such charges by up to €300.

The Commission for the Regulation of Utilities (CRU) appeared before the Joint Committee on the Environment and Climate Action, after a week in which Panda Power became the fourth supplier this year to announce its departure from the market, while ESB Networks announced profits of €390m for the first six months of 2022.

“It’s really unfortunate for customers who are losing suppliers,” Aoife MacEvilly, CRU chairperson, said.

She said it was a sign of the “intense pressure”, particularly on smaller suppliers in the market, with Panda’s exit affecting about 60,000 customers.

Ms MacEvilly said it was “ironic” for Panda’s exit to coincide with ESB’s huge profits, and she said that is why the vEuropean Union “is stepping in with a package” to limit profits and claw back the windfall profits to put them towards supporting customers.

With all of the major energy companies set to implement yet more price hikes in the coming weeks, CRU last month unveiled measures aimed at supporting households heading into the winter.

This included an extension of the winter moratorium on disconnections, and ensuring customers on financial hardship metres are put on the cheapest tariffs.

The CRU chair said one of the most critical groups to support were people who relied on electricity for medically assistive devices.

“For those customers, they can never be disconnected for reasons of non-payment. We need to get that message out there,” she said. 

“People should not be avoiding use of such devices because they’re afraid of their bill.” 

Both Sinn Féin’s Darren O’Rourke and People Before Profit's Bríd Smith asked CRU why all customers couldn’t be automatically put on the cheapest tariffs.

Ms MacEvilly said if companies had to provide discounts to all customers, “ultimately everyone would be paying the same”, and that this may actually see bills rise for some as companies wouldn’t be able to afford to provide the same discounts.

The roll-out of smart metres was also referenced at the meeting, with the potential for customers to be able to monitor their energy usage in real-time via an app on their phones and online mooted in the future.

Karen Trant, director of customer policy and protection with CRU, said a campaign would be undertaken to encourage smart metres and the use of smart tariffs to help customers save. She said it would take at least six months to a year to see a real uptake of smart tariffs among households.

On the issue of other suppliers potentially leaving the market, as they face huge increases in wholesale costs, Ms Trant said engagement was ongoing with suppliers with “no indication” another may follow Panda Power out of the market.

“But that’s no guarantee,” she added.