Thursday, March 30, 2023

Thousands face ‘extortionate’ energy price after Iberdrola exit shocks

Thousands Face 'Extortionate' Energy Price After Iberdrola Exit Shocks

Iberdrola’s decision to leave the Irish market has left thousands of customers in the lurch, urging them to negotiate with their new energy providers or risk paying higher bills.

Over 32,000 customers have been affected by the instant pull-out announced by the company last week. Their accounts were automatically transferred to suppliers of last resort, Electric Ireland and Board Guys, on 8 June.

But customers are immediately put at those companies’ standard variable rates, without respecting the terms of their existing contract. And those rates can be much higher.

Acquisition of accounts no longer allows former Iberdrola customers to transfer from Electric Ireland and/or Board Guys before 1 September – although they can now negotiate a more favorable rate than the standard rate.

This is the approach being urged by the Commission for the Regulation of Utilities (CRU).

A Sligo restaurateur revealed that his electricity rates have more than doubled since relocating to Electric Ireland, calling it “reprehensible”.

Declan Harrison, who owns Harrison’s Pub & Restaurant in Sligo, Cliffoni, told Irish independent: “I was with Iberdrola at a rate of 21c per kwh. Now I am transferring myself to a contract at Electric Ireland, I am unable to exit until September. It costs 45c per kwh, which I find scandalous .

A spokesman for the Winters Federation of Ireland said: “It is extremely disappointing that the CRU has failed to ensure that the customer charges agreed with Iberdrola are not transferred to new suppliers.”

Former Iberdrola customers also report being unable to contact the company.

Fianna Fáil TD Mark MacSharry said customers had no choice or time left to make a purchase or consider other options.

“The company is gone, their customers are facing forced immediate growth of more than double what they were before,” Mr. McSherry said.

CRU’s Carl Richardson said that although customers cannot change suppliers until the autumn, they can negotiate a new rate with Electric Ireland or Board Guess.

“The main message for all customers is to talk to your new supplier as soon as you’ve moved,” he said.

In a statement, the board Guess Energy said all customers would receive a letter in the coming days urging them to “contact us as soon as possible thereafter to move them at a more competitive rate”.

Electric Ireland said that Iberdrola moved domestic customers to “the lowest standard unit rate in the market” and customers can sign up for a pricing plan, and take advantage of “many offers that represent great value”. can pick up.

The provider said that business customers are automatically placed on their Open Standard Variable tariff of 45c per kwh + VAT and urged them to contact their sales team to discuss further.

Iberdrola could not be reached for comment.

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