The 11th entrant into the energy market will surely increase competition, spelling good news for consumers.
It's been an interesting few weeks for the Irish energy market, which included the announcement by Just Energy that it would be pulling out of Ireland to focus on its core business in the UK and North America.
But just as one exited stage left, another is to enter stage right.
Today it has been confirmed that there's a new supplier entering the Irish energy market and its name is Iberdrola.
So who are they and what does all of this mean? Let's find out…
Who are Iberdrola
While the name might not sound familiar, Iberdrola is not new to this. The Iberdrola group is one of the world's largest integrated utilities and a world leader in wind energy.
The Spanish company trades as Scottish Power in Great Britain and has over 100 million customers worldwide.
As a world leader in wind energy, Iberdrola sources huge amounts of energy from wind and other renewable sources. Iberdrola is currently the top renewable energy producer in Europe and already operates six wind farms on the island of Ireland with plans to invest further in renewable energy here in the near future.
Short-term plans include spending €100 million updating three of its wind farms to boost the amount of electricity they can generate by equipping them with newer, more efficient wind turbines. Batteries will also be installed at its facilities, which will be used to help store wind energy during times of low demand for when it is needed in the future.
Iberdrola also plans to start investing considerably in solar energy here too.
In its effort to make energy smarter and greener, Iberdrola will offer customers 100% green energy tariffs, as well as promising new and better ways to make managing energy easier.
Iberdrola's investment in Ireland will also lead to the creation of around 150 new jobs it says.
Choice of fixed or variable tariff
Customers will have the choice of a variable tariff or a slightly more expensive fixed tariff, where the price is guaranteed not to rise for a year.
Fixed tariffs are extremely common in other markets like the UK but suppliers in Ireland have been slow to offer them to customers here.
Every new customer will also have to sign up for direct debit.
Iberdrola offers variable direct debit as opposed to level pay plans or budget payment plans where you pay in 12 equal instalments based on an average of your previous year's consumption. This means you’ll receive a bill every two months and payment for the amount due will be collected 14 days later. This means that the energy you pay for will be just the energy you've used.
Iberdrola will only offer electricity to residential customers for now but will look to offer gas also in the coming months.
Commenting on the news, our own Daragh Cassidy, Head of Communications here at bonkers.ie says:
“Increased competition should mean more choice and lower prices, which can only be good news for hard-pressed energy customers in Ireland who have seen their bills increase hugely over the past two years and who pay among the highest prices for electricity in Europe.”
Iberdrola’s launch of a fixed tariff is also welcome given how volatile energy prices have been in recent times".
What do you think?
Is this good news for you? When was the last time you switched energy supplier? Get in touch and let us know!