Australian-based energy retailer Elysian Energy has been placed into voluntary administration, becoming the seventh boutique provider this year to succumb to the global energy crisis.
The move comes less than two months after the solar-based company told their customers to expect prices to increase by more than 100 per cent.
The ABC has contacted Elysian Energy for comment.
An email from Elysian to customers said existing customers would be appointed to a new retailer under the Retailer of Last Resort scheme by the Australian Energy Regulator and Essential Services Commission Victoria.
"The process may take a few weeks to be completed at which time a new electricity provider will make themselves known to you, the customer," the email said.
Less competition worrying
Director of the Victorian Energy Policy Centre at Victoria University Professor Bruce Mountain told ABC Radio Melbourne it was a worrying trend.
"Almost all of the seven [providers] that have hit the wall have been innovative startups running on the smell of an oily rag," he said.
According to its website, Elysian was a "proud advocate for clean renewable energy", using the more than 3 million Australian rooftop solar panels to supply customers in New South Wales, Victoria, Queensland, South Australia, and the Australian Capital Territory.
Professor Mountain said it was a "great policy concern".
"I think that we're seeing these small companies leaving and the main reason is they don't make their own electricity and they need to buy from one of the big retailers," he said.
People were moving on from seeing electricity as merely a utility. Professor Mountain said improved solar and battery storage options meant customers could have more choice and ultimately better service.
But 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-produced power while new entrants were riding out more volatile market conditions.
"The base cost has not terribly changed but that's not the same for newer entrants," he said.
Consumers expect more from retailers
Professor Mountain said he would expect customers to become increasingly cynical of providers.
"They're just going to be rolled back to one of the old companies who are now facing less pressure from new entrants," Mr Mountain said.
Professor Mountain wanted to see the government step in to ensure newer entrants could stay afloat while prices continued to rise.
"This is where a whole lot of the real challenge lies," he said.
"Many customers are going to be finding electricity very expensive, and they're going to have to sacrifice that too.
"That is a challenge that only the government can really take on."
Switching providers
Elysian customer Guy Oliver said the notice of administration was the first email he had received from the company.
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] by about $200," he said.
Mr Oliver said the hunt was now on to decide on a new provider.
"You don't just go with the flow; you've got to look out 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."
