Electricity retailer Elysian Energy has failed as wholesale power prices take their toll

Elysian Energy’s more than 7000 customers will be rapidly assigned to other providers after the company was placed in administration.

The lights are out at Elysian Energy.

Electricity retailer Elysian Energy has been placed in voluntary administration less than three months after warning customers they should urgently find a new provider.

The Australian Energy Market Operator (AEMO) has issued a notice to suspend the company’s ability to trade in the National Electricity Market as of Friday, September 2, and Adrian Hunter and Robyn Erskine of Brooke Bird have been appointed as administrators of the company.

AEMO said Elysian’s 7500 or so customers should not be concerned about their power being turned off, and if necessary they would be allocated a new retailer by the Australian Energy Regulator.

“The administrators are holding urgent and immediate discussions with the various Australian energy regulators,’’ AEMO said in a statement.

“The Australian Energy Regulator (AER) and Essential Services Commission have the power to appoint a new electricity retailers to the company’s customers under the Retailer of Last Resort (ROLR) scheme.

“It is anticipated that under the ROLR process, the automatic transfer of all customer accounts to an alternative electricity provider will occur.

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“This process may take a few weeks to be completed at which time a new electricity provider will then make themselves known to the customers.’’

Elysian took the unusual step in June of urging its customers to find another provider, saying increases in wholesale electricity prices meant its own prices would at least double.

Fellow retailer ReAmped Energy also in June urged its customers to look elsewhere for services.

“As you may have seen in recent media reports, we are currently in the midst of a global energy crisis, with energy prices rising to their highest levels in some decades,” Elysian Energy told its customers in June.

“With wholesale energy prices (the price Elysian Energy pays for electricity) increasing by upwards of 200 per cent in recent months, we finally have to change our prices to reflect this unprecedented increase in our costs.

“We understand the pressure and impact this unprecedented situation can generate on the finances of many households, for this reason, we encourage our customers to explore the market offers available at Victorian Energy Compare to ensure you are on the plan that best fits your budget and energy needs.”

It is understood that a high proportion of the company’s customers were based in Victoria.

The amount of debt outstanding, if any, is not clear at this stage.