Jackgreen enters voluntary administration
Yesterday, Monday 21st December, Jackgreen appointed Atle Crowe-Maxwell and John Lord of PKF as voluntary administrators of Jackgreen Ltd as its subsidiaries.
Jackgreen ran into trouble during last month's heatwave on the eastern seaboard when they found themselves unhedged and were forced to buy electricity on the spot market at extremely high prices.
Jackgreen amassed a debt of $809k to New South Wales Government owned retailer Integral Energy, but has been unable to secure sufficient working capital to secure this debt and the ongoing viability of the business.
Jackgreen's 70,000 residential customers will be allocated to retailers competing in the New South Wales, South Australian, Queensland and Victorian energy markets.
Make It Cheaper says: "It's a real shame to see a relatively new competitor in the energy space go under like this. It shows that without proper government and regulatory support, new market entrants can easily hit the wall in the face of aggressively volatile wholesale prices. Hopefully the government and energy regulator will look at ways new market entrants can be better supported in the various state based energy markets where there are still not enough competing suppliers."
Existing Jackgreen customers can be confident that with the 'supplier of last resort' mechanism the government runs, they will not be left without energy supplies. They should keep an eye on the Jackgreen for further announcements, but as Jackgreen offered both competitive prices and green energy supplies, these customers should look to shop around in the New Year for a new energy deal.