Elysian Energy has been placed under voluntary administration, following a growing line of retailers to collapse under the pressure of rising wholesale prices.
The Melbourne-based electricity retailer was suspended from trading in the national electricity market as of 12am on Friday 2 September, after administrators were appointed on August 30.
The retailer, like several others, had been battling rising wholesale electricity prices since June this year. It had also encouraged its customers to find a better provider less than three months ago amid concerns it would need to double its prices.
Elysian Energy customers are expected to be transferred to a new provider in the coming weeks, as part of the Australian Energy Regulator’s and Essential Services Commissions’ Retailer of Last Resort Scheme.
Adrian Hunter, insolvency expert at Brooke Bird and one of the appointed administrators for Elysian Energy, assured customers that their electricity usage would not be compromised during this process.
“Elysian Energy customers do not have to worry about their electricity being cut off during this transition,” Mr Hunter said in a statement to the Australian Associated Press.
“We are working hand-in-hand with the Essential Services Commission, the Australian Energy Regulator and AEMO (Australian Energy Market Operator) to ensure this is a smooth process for all the customers.”
Elysian Energy is the latest in a wave of retailers to fall victim to the ongoing energy market volatility, following the likes of community-owned Enova Energy, Pooled Energy, Powerclub and Mojo Power East, all of which have since entered administration.
About 7,500 energy customers are expected to be impacted by the Elysian Energy closure.
Elysian Energy offered customers a unique, subscription-based electricity plan that required households to pay a monthly membership. This membership fee absorbed the daily supply charge for customers and also prepaid for a small portion of energy usage for that month.
It provided electricity to customers in New South Wales, Victoria, south-east Queensland, South Australia, the Australian Capital Territory and Tasmania.
Canstar Blue has reached out to Elysian Energy for comment.
What does this mean for Elysian Energy customers?
Rest assured; Elysian Energy customers won’t lose their power supply as a result of this closure. Instead, customers will be automatically transferred to a new electricity provider as part of the Australian Energy Regulator’s (AER) and Essential Services Commission’s (ESC) Retailer of Last Resort Scheme.
The retailers included in the scheme are typically Origin, AGL and EnergyAustralia or ActewAGL in the ACT and Aurora Energy in Tasmania. The retailer customers are transferred to is dependent on their distribution network. It is important to note however that customers are welcome to choose their own electricity provider, if they do not wish to use their appointed one.
Customers will still need to settle any outstanding or final payments with Elysian Energy.
Once customers have been successfully transferred, their new provider will reach out to discuss future payments and billing cycles.
For more information, customers should visit the AER’s website. If you live in Victoria, it is best to visit the ESC’s website.
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