AER steps in as Mojo Power East collapses

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Mojo Power East (also trading as People Energy) has collapsed, with the Australian Energy Regulator (AER) initiating the Retailer of Last Resort process.

Under the Retailer of Last Resort process, customers will be transferred to retailers such as Origin Energy and Energy Australia, who will contact them directly to explain the new arrangements. This impacts around 500 customers across New South Wales, Queensland, and South Australia.

Related article: Power Club the fourth energy retailer to bite dust

The AER applied the consumer safeguard after the company ceased the sale of energy to five local councils based in New South Wales. This will ensure continuation of supply to essential services to Mojo Power East customers within these jurisdictions, including the affected local councils.

The news of the collapse comes just days after it was announced Power Club was the fourth energy retailer to fall victim to Australia’s wholesale electricity prices following the voluntary administration of Enova Energy and the collapse of Weston Energy and Pooled Energy.

Small energy retailer Power Club, with members in Queensland, NSW, the ACT and South Australia, was suspended by the Australian Energy Market Operator (AEMO).

Related article: Enova Energy enters voluntary administration

In a statement AEMO advised it had issued a notice to suspend Power Club Limited from all trading in the National Electricity Market (NEM).

“Power Club Limited is ineligible to trade or enter into any transaction in the NEM until such time as AEMO notifies Power Club Limited and all other Registered Participants that the suspension has been lifted,” AEMO said.

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