Green energy leader Enova in administration: What should customers do now?
It's lights off for the award-winning industry leader.
The unfolding energy crisis has struck again. Australia's first community-owned energy retailer Enova has been placed into voluntary administration.
In a statement, Enova's chief executive Felicity Stening said:
"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."
What will happen to Enova's customers?
If you're an Enova Energy customer there's no need to panic, your electricity won't be disconnected. In situations like this, the Australian Energy Regulator (AER) has the power to appoint new retailers for customers under what's called the "Retailer of Last Resort" scheme.
The process is automatic and you'll need to pay any outstanding bills issued by Enova before the transfer.
Your new retailer will reach out to you to set up your future payments and check for things like life support needs, rebates you're on, and other important details.
What if you don't like the new retailer you're transferred to?
The Retailer of Last Resort mechanism has protections in place for consumers.
Your new retailer must provide you with written communication that states in plain English any applicable tariffs, terms and conditions and other details of the contract you're being transferred to.
If you're unhappy with any of the terms you can transfer to another retailer or contract at any time.
You can compare energy providers here to find a deal that's right for you.
On 1 July energy prices are due to reset and many providers will likely raise their prices (if they haven't already). It's not the ideal time to be assigned to a new provider so it's important to do some research right away and make the best decision for your household.
Some of the larger energy providers are offering sign-up credit and other bonuses you may wish to take advantage of.
What are some other Green energy providers you can switch to?
Amidst the energy crisis, smaller providers are having a tough time. Just 2 weeks ago Finder awarded Enova Energy an award as Overall Green Energy Retailer of the Year.
Other green energy providers are in various states of play:
- Diamond Energy is accepting new customers but won't process applications until after it announces the new rates on 1 July.
- Mojo Power is offering standard contracts and will review market offers when it announces new rates on 1 July.
- Nectr Energy is not accepting new customers at the moment.
- Amber Electric is only accepting solar customers.
- Red Energy is currently accepting new customers.
Why is this happening?
Enova Energy sourced half its energy from its customers' rooftop solar and the other half from Victorian-based Diamond Energy.
Enova said it wasn't able to secure a new fixed pricing arrangement with Diamond after its old one came to end. This has left it vulnerable to the changes in wholesale energy prices due on 1 July.
You can read about what's affecting wholesale energy prices in our energy crisis explainer.
Cathro & Partners has been appointed to manage the administration process.
Want to make the switch to a better plan but unsure how? See our guide to switching energy providers.