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PANDA WASTE HAS gone into the electricity business as Ireland’s latest retail supplier and it’s promising the cheapest rate of any power provider.
The company, branded Panda Power, has spent €40 million getting set up and plans to ”aggressively compete on price” after recently getting regulatory approval from the Commission for Energy Regulation.
From today, the new supplier will offer electricity from renewable-only sources at a discounted rate of 15.47 cent per kWh, with standing charges of €157.77 in urban areas and €192.72 in rural areas.
That unit rate will immediately undercut its competitors, although customers can get cheaper deals elsewhere if they sign up for both power and gas services or take advantage of cash-back offers.
While Panda Power will be available across the country, it will first focus on selling to 150,000 households – concentrated in Dublin and the surrounding commuter counties - that already pay for its bin-collection services.
Figures released last week showed Irish consumers were paying the third-highest rates in the EU for electricity – and the most before taxes and levies were added. The average tariff was 25.4 cent per kWh for the second half of last year.
‘Illusion’ of competition
Commenting on the European comparison, Dermott Jewell of the Consumers’ Association of Ireland said there was only “an illusion” of competition for Irish electricity customers.
Eoin Clarke, from comparison site Switcher.ie, said Panda Power’s entry into the market would mean more choice and that could spark “price wars” between suppliers.
The real concern that we have however, is that people are slow to switch supplier when their contract ends, despite having more competitive offerings in the market that would yield significant personal savings over the course of the next year,” he said.
While Clarke said the new provider could claim the lowest electricity unit rate on the market, the average yearly cost difference was only €1 to its nearest competitor – and others were cheaper still when one-off bonus payments were factored in.
Panda Power is owned by Eamon Waters, who took over Panda Waste – Ireland’s largest domestically-owned rubbish collection and recycling firm – in 1990 and now jointly owns the company with his brother Noel.
The group employs about 700 people and last year it recorded turnover of €95 million. In February it won a High Court case against Greenstar to stop its rival collecting the bins of Panda customers who decided to switch suppliers.
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As Dermot Jewell said, there’s no competition in the utility markets. People won’t/don’t switch for a few percent, and that’s all there is to be had, because the wholesale rates underpinning the market are too high.
I can’t help think about how lazy their sales tactic is by plopping a woman on a bin? It’s a no from me.
True, Deborah, it doesn’t take much effort to lift the lid.
This all sounds grate just like when they arrived on the bin scene.
Then hiked up their prices.
I’m sure the same thing will happen once the first 150,000 homes are signed up and locked in a contract.
But
that’s just my opinion.
Grate and great are not the same.
Example–
Pat is grating a great amount of the time.
Waste and Waist are not the same.
J, that is a very good example.
I knew you would be grateful, Tap.
“An illusion of competition” is spot on.it is more like a cartel playing games with their victims.
The reason why many citizens do not play the little game at all is that at the termination of each of their “special deal” of 12 months duration most people are not aware that they have been put on the highest rate again.
Why are they not aware.?
Because there is no obligation on any utility company to inform a customer that they are about to be ripped off again.
Dermot Jewell would be better occupied getting a simple piece of legislation put in place to this effect.
Currently, anybody who changes supplier for a “special offer” has to write down, preferably on their kitchen wall,in large letters,a date 30 days prior to the end of the “deal”‘and phone the company to cancel or negotiate a new “deal”.
I have had to renovate the “deal” twice in the last two years ( with the same company) this is simpler than going through all the hoops signing with another supplier.
I neglected to note the date of expiry however, and was caught for 4 months of the rip-off rate before the bills alerted me to it.
The whole business is like everything else in Ireland-nothing but a sham and a waste of citizen’s time.
There is no obligation on any of them to promptly lower the rates when the price of oil falls by 100 percent or more!
Am I correct in saying that Panda are the company which never come out to collect your bins when you cancel your contract with them.
My son had this experience, and despite numerous phone calls,he had to bring the bins himself over to their depot.lucky for him he owned a van!
Tell your son next time stick up one of those free ads on adverts or donedeal saying giving bins away for free. They will be gone in no time.
Is the woman sitting on the wheely bin in high heels and a short kimono some sort of electrical engineer or a typical Panda subscriber? How is it relevant to the article?
Did you notice the silly man in the top hat? I have no idea why they used these models to pose for this photo. Totally ridiculous!
She is a “sweetener”!
Lol.
Pretty sure that’s Katy French on the bin. Slightly old photo if so.
Nothing wrong with a bit of competition… We need it to improve service and fees.
Honestly I think ‘contracts’ for utilities or services should be banned. It’s the sneakiest sales tactic there is and just drives up costs of the service provided.
You should be able to pay any outstanding due and switch providers at any time. But instead they tell people they need a 12 or 24 months to recoup the cost of connection or a cheap receiver box. They usually have a fake ‘connection charge’ that no one ever pays… It’s waived as ‘part of the contract deal’ and then when the contracts up. They call you up ask you are you happy… then say the rate will double or some petty incentive unless you sign a new 2 year contract.
Most of these ‘contracts’ are legally binding in the slightest terms.
*aren’t
No that’s actually untrue.
Panda (or any company without generation) if they offer you discounts in excess of 5% of ESBs standard rate are loss making for that period and hope that customer inertia will mean you’ll forget to move and they will profit after the one year rate. That’s why there is a contract.
Best thing to do is change your electricity provider every year and take whatever discounts are on offer.
Tackling the higher wholesale prices will be tougher with ours always being an “add-on” to the UK based on where we import out price-setting wholesale gas from.
Reneweable supports also a factor.
When you’re talking about Irish electricity prices I think you also have to factor in the very extensive network, due to our low population. Also gas as you say is imported, though we will have up to 60% of our gas supplies by corrib in the near future, though obviously still traded commodity, it should be slightly cheaper?
Corrib won’t affect prices as the marginal gas will still be bought from the UK and will therefore set the price.
You can also try the Irish developed App EnergyElephant to see how much energy you use.
It also helps small businesses check they aren’t being ripped off.
Imagine the political connections you would need to setup something like this only the elite. Why not cut out the middle men and setup local community power co op. Buy your energy on the open market pay the line rental to the ESB. Do need affordable power for homes and businesses not richer investors.
Away you go so, though you do realise you will be responsible for all the billing, and payment collection. Who in the community does this or does it look after itself? Also I presume some finance/bonds to guarantee payments from the wholesale providers, and pso levies would be required. I think it would be impractical for most communities.
Another company coming knocking on my door telling me how I can save money.
If you live in an apartment complex then by using smart LED technology and Panda rates you can expect a 90% cost saving on common area lighting electric bills!
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