Iberdrola exit another sign of energy market strain

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When a business exits the Irish market, it is never usually a good sign. Iberdrola's announcement that it plans to cease offering gas and electricity here is a signal of a wide and growing set of complex problems such providers now face.

As we are all too aware by now, wholesale energy prices have been soaring for the past few months and the reasons are well rehearsed.

Oil prices are now as a result six times higher than they were in the trough of the pandemic in early 2020 and natural gas prices are up over five times what they were at that time. In other words, it is not making much money, and given the dynamics of the global energy market and the competition it is facing here, it is cutting its losses after three years of trying and getting out.

The firm, which had only launched in the summer of 2020, blamed increases in prices on the wholesale energy market that it claimed were impacting its operations. Of course, it being a much larger market, there are still many more providers for consumers to choose from in Britain than there are here.

 

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