On 12 July 2022 the Essential Services Commission initiated the ‘retailer of last resort’ process that transferred customers from failed retailer Power Club Limited (Powerclub), to other retailers in Victoria to provide for the continued supply and sale of electricity services.
Powerclub was suspended from the National Electricity Market by the Australian Energy Market Operator (AEMO) effective from 0:00 hours Australian Eastern Standard time on 12 July 2022 for failing to comply with AEMO requirements.
Under the Electricity Industry Act, the retailer of last resort scheme operates to protect a customer’s electricity supply in the event that a retailer’s right to acquire electricity from the wholesale electricity market is suspended or terminated. The Essential Services Commission has a role in the retailer of last resort process in Victoria to support the transfer of Power Club’s customers to either AGL, Origin Energy or EnergyAustralia.
Approximately 1,500 customers in Victoria were affected by this market suspension and were automatically transferred to their new retailer and placed on the Victorian Default Offer. Affected customers have received communications from the commission and will be contacted directly from their new retailer with information about the new arrangements including options for ongoing supply and who to contact for more information or in the event of any disputes.
Customers transferred to a retailer of last resort can change this arrangement at any time. They can choose to enter into a new contract with the retailer of last resort or choose a new retailer that services their area.
On 19 July 2022 Powerclub appointed administrators pursuant to section 436A of the Corporations Act 2001. We are making further enquiries with the administrators to better understand the situation with respect to any customer funds held by Powerclub. Affected customers are also able to make their own enquiries of the administrator at powerclub@smbadvisory.com.au and 1800 762 238.
Note: This article was updated on 4 August 2022 to reflect new information as a result of the appointment of administrators.
