Byron Bay-based community energy retailer Enova Energy has entered voluntary administration, with CEO Felicity Stening blaming the “diabolical” state of the energy market as the caused of its demise.
According to The Australian, Enova entered voluntary administration on Tuesday morning after failing to seal wholesale energy price hedging after a deal with Melbourne’s Diamond Energy lapsed. A cap imposed on customer pricing also led to the business no longer being financially viable.
The demise Enova marks the third retailer to fold amid Australia’s nationwide energy crisis, which has seen the wholesale electricity market suspended, price caps imposed and the threat of blackouts due to a lack of power generation being available.
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Enova, which had 13,200 customers across NSW and South East Queensland, blamed chaotic 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,” Enova CEO Felicity Stening 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.”
The energy crisis has also claimed the scalps of gas retailer Weston Energy, which closed its doors on May 23, and electricity retailer Pooled Energy, which appointed administrators a week later due to high wholesale prices.