Electricity provider Elysian Energy collapses after price hike
A Melbourne-based electricity company will be taken off the market from Friday.
An energy provider has been suspended from the national electricity market and will be banned from trading after being placed in voluntary administration.
Elysian Energy, the majority of whose customers are Victoria-based, will be taken off the market from Friday, the Australian Energy Market Operator confirmed.
Insolvency experts Adrian Hunter and Robyn Erskine of Brooke Bird have been appointed as administrators of the company.
Customers of the provider are expected to be transferred to a different provider.
“Elysian Energy customers do not have to worry about their electricity being cut off during this transition,” Mr Hunter said in a statement.
“We are working hand-in-hand with the Essential Services Commission, the Australian Energy Regulator and AEMO to ensure this is a smooth process for all the customers.”
Elysian provides about 7500 houses with solar energy.
The closure comes three months after Elysian urged its customers to find a new provider as rising wholesale costs were forcing them to double prices.
Customers received a letter from the service saying it has been absorbing massive wholesale power price hikes and that added costs for consumers will soon increase by at least 100 per cent.
ReAmped Energy used a similar measure and told customers it was in their best interests to switch providers to get a cheaper price.
At the time the Australian Energy Regulator raised benchmark prices for retailers, resulting in households receiving higher bills from July 1.
ReAmped Energy chief executive Luke Blincoe said it was an “incredibly volatile time” for the energy market due to rising costs.
“Several retailers have already started to pull up the drawbridge, so customers need to act fast to get themselves onto a better deal now before it’s too late,” he said in a statement.
“There are still a handful of competitive deals in the market. No one really knows how bad it will get, so we want people to act now.”
ReAmped Energy has 70,000 customers across NSW, Queensland, Victoria, South Australia and the ACT.
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