Another two retailers suspended amid ongoing energy market turmoil

Update: AEMO says it has lifted the suspension orders for the two retailers. See end of story for details.

As Australia’s energy ministers try to figure out which levers to pull to deliver some relief from high electricity and gas prices, another two small retailers appear to have run into trouble, including smart solar and renewables-focused outfit Mojo Power.

The Australian Energy Market Operator on Wednesday issued two separate notices to suspend Sydney-based Mojo Power and Brisbane-based QEnergy from all trading in the National Electricity Market, from midnight on Tuesday night.

The notices say both Mojo Power and QEnergy are “ineligible to trade or enter into any transaction in the NEM until such time as AEMO notifies … that the suspension has been lifted.”

The reasons for the retailers suspensions are not stated, although it is believed it relates to defaults on credit requirements in the NEM. The suspensions were later lifted.

Neither retailer issued a statement on the suspension, although both had notices on their websites saying that all Market Offers and Standing Offers are on hold to new customers, with Standing Offers available to current customers only.

“As you may be aware there is significant movement and volatility in the wholesale electricity market and this is impacting our ability to offer competitive pricing at this time,” both notices say.

The scenario is a familiar one. Australia’s fossil fuel driven energy market crisis has claimed at least half a dozen small retailer scalps over the course of the year, many of them solar, battery and renewable energy focused.

These include Elysian Energy, in September, solar and battery virtual power plant focused retailer Social Energy in August and, in June, Australia’s first community-owned energy retailer, Byron Bay-based Enova, which went into voluntary administration blaming a market whose design protects fossil fuel-backed incumbents.

Mojo Power was founded in 2015 – one of its co-founders is the current Arena chief Darren Miller – with a similar mission to many of its peers: to challenge the market incumbents and to offer customers a more solar and green energy aligned approach to home energy.

Targeting customers in New South Wales, South Australia and south-east Queensland, Mojo has described itself as being on a mission to help customers reduce their dependence on grid energy and benefit from cheaper, greener electricity. It does this using smart meters, an energy monitoring platform, and competitive solar feed-in tariffs.

QEnergy, meanwhile, seems to have focused more on offering one of the cheapest retail deals in the market. It services mostly small and medium businesses in New South Wales, Victoria and Queensland, as well as residential customers.

Update: In a later statement, AEMO said:

“Further to the two suspension notices published today, the Australian Energy Market Operator (AEMO) advises under clause 3.15.21(e) of the National Electricity Rules that it has lifted the notices to suspend Mojo Power Pty Ltd and QEnergy Limited from all trading in the National Electricity Market (NEM) with effect immediately after the suspension, also from 24:00 hours Australian Eastern Standard time on 6 December 2022.

“AEMO is satisfied that the default events giving rise to the suspension notice issued and given to Mojo Power Pty Ltd and QEnergy Limited respectively have been remedied.”