Enova Energy in Byron Bay under administration

A community-owned energy retailer with a history of supporting the North Coast has gone into administration due to a ‘diabolical’ broken energy market, according to its CEO.

Byron Bay energy company Enova Energy has been forced into voluntary administration as the energy crisis continues to worsen.

Known as Australia’s first community-owned electricity retailer, which has been both a winner and finalist in Northern Rivers Regional Business Awards, Enova Energy on Tuesday appointed administrators Simon John Cathro and Andrew Thomas Blundell to the company.

The Australian Financial Review reports the company is entering administration with about $8 million owing to employees and creditors

Enova advised that its entire team was made redundant as part of the administration process.

A creditor’s meeting will be held on June 30, according to the ASIC notice.

Enova Community Energy Ltd CEO Felicity Stening

It is understood the move came after Enova failed to seal wholesale energy price hedging after a deal with Melbourne’s Diamond Energy lapsed.

Enova chief executive Felicity Stening said in a statement she blamed the current market conditions.

“The current diabolical state of the energy market, combined with the high wholesale market energy prices and the cap on customer pricing, has made it impossible for Enova Energy and many other small retailers to operate in the market,” she said.

“The market is broken and does not support small retailers. In addition, the constant raft of State and Federal Government regulatory changes is adding to the market complexities and have caused Enova delays in being able to fund and resource energy innovation.”

Byron Shire Councillor Mark Swivel called the news “a great adventure in renewables innovation undone by the energy crisis”.

Lismore MP Janelle Saffin said she was “very sorry” to hear the news and what it could mean for its local workforce.

“I am very sorry to hear that Enova Energy is going into voluntary administration and feel sorry for the workers. Terrible at any time and more so in these times, “ she wrote on Facebook.

The company was founded in 2016 and was even named best electricity company by Choice in 2020.

Enova commenced operations funded through 1,100 community shareholders and expanded to the whole of NSW and South East Queensland in early 2021.

The company has also worked tirelessly to give half of its profits back to the community via energy efficiency, education and community projects.

The Northern Star has contacted Enova Energy for further comment.