Enova Energy, Australia's first renewables-focused community energy retailer, has been placed into voluntary administration after being hit by the ongoing energy crisis and rising inflation.
A filing with the Australian Securities and Investments Commission (ASIC) on Tuesday showed that Simon John Cathro and Andrew Thomas Blundell have been appointed as administrators. A first meeting with the struggling company’s creditors is scheduled for June 30, 2022.
In an e-mail to its customers, seen by the Australian Broadcasting Corporation (ABC) News, Enova explained that the "diabolical" energy crisis in the National Electricity Market has led to “unbearable” effects on the company’s ability to operate. Difficulties in securing fixed-priced agreements after the expiry of an earlier deal with domestic power retailer Diamond Energy and caps on customer pricing were cited as some of the hurdles for the company.
Set up in 2016, Enova is owned by more than 1,600 Australian community shareholders. The company’s business is focused on the supply of supply locally-generated electricity from renewable power plants.
According to the report, Enova’s entire team has been made redundant as part of the administration process, while its customers will be transferred automatically to a new retailer.
Choose your newsletter by Renewables Now. Join for free!