Elysian Energy enters voluntary administration after doubling its electricity prices in June

Australia-based energy retailer Elysian Energy has been placed into voluntary administration, becoming the seventh boutique supplier this year to succumb to the global energy crisis.

The move comes less than two months after the solar power company told its customers to expect prices to rise by more than 100 percent.

ABC has contacted Elysian Energy for comment.

An email from Elysian to customers said that existing customers would be appointed to a new retailer under the Retailer of Last Resort scheme by the Australian Essential Services Commission and Energy Regulators Victoria.

“The process may take a few weeks to complete, at which point a new electricity provider will be announced to you, the customer,” the email said.

Less worrying competition

The director of the Victoria Center for Energy Policy at the University of Victoria, Professor Bruce Mountain, told ABC Radio Melbourne that it was a worrying trend.

“Almost all seven [providers] that have hit the wall have been innovative startups that run on the smell of oily rags,” he said.

Bruce Mountain MCU with blurred brown and red background
Professor Mountain says the move means there is now less competition.(ABC News)

According to its website, Elysian was a “proud advocate of clean renewable energy,” using Australia’s more than 3 million rooftop solar panels to power customers in New South Wales, Victoria, Queensland, South Australia and the Territory of Australia. the Australian Capital.

Professor Mountain said it was a “major political concern”.

“I think we’re seeing these small businesses leaving and the main reason is that they don’t produce their own electricity and they need to buy from one of the big retailers,” he said.

A closeup shot of solar panels on top of a house
Elysian prided itself on its first approach to solar power.(ABC News: Billy Cooper)

People stopped seeing electricity as a mere service. Professor Mountain said improved solar and battery storage options meant customers could have more choice and ultimately better service.

But the big players still had an advantage compared to new entrants like Elysian.

Professor Mountain said more established retailers would have existing fixed prices for gas and coal-fired power, while new entrants would face more volatile market conditions.

“The base cost hasn’t changed much, but that’s not the same for new entrants,” he said.

Consumers expect more from retailers

Professor Mountain said he would expect customers to become increasingly cynical about providers.

“They will just go back to being one of the old companies that now faces less pressure from new entrants,” Mountain said.

Professor Mountain wanted the government to step in to ensure new entrants could stay afloat while prices continued to rise.

“This is where much of the real challenge lies,” he said.

“Many customers will find electricity very expensive and will have to sacrifice that as well.

“That is a challenge that only the government can take on.”

Change provider

Elysian client Guy Oliver said the management notice was the first email he received from the company.

A screenshot of an email with about six paragraphs of text from an energy company
Customers were contacted via email informing them of the development.(Supplied: Guy Oliver)

Mr. Oliver, who has been an Elysian customer for about two years, said he had noticed his bills steadily increasing over the past 24 months.

“[They’ve gone up] around $200,” he said.

Oliver said the hunt was now on to decide on a new supplier.

“You don’t go with the flow; you have to be vigilant and do your own research,” he said.

“I don’t want to be cynical about this, but you have to stop and think about it.”

Be the first to comment

Leave a Reply

Your email address will not be published.