The CEO of Electricityinabox, Morgan Duncan, has sent a letter to customers saying “only the lazy or crazy would stay” with his company, with its rates set to go up 95 per cent on July 1.
The letter from the self-described “little Aussie electricity retailer” to customers begins with the frank statement: “you need to find a new electricity provider today”.
“You need to be aware that smaller low price high value retailers are exiting this market. Four have already exited, some of them closed their doors,” it continues.
Electricityinabox has advised it is not closing down but is exiting “this part of the market”.
The letter explains other energy retailers purchased energy for a lower cost a long time ago and could still offer better deals.
Duncan has reassured customers the notification is not a scam.
Other energy companies that have told their customers to abandon them include ReAmped, LPE, Discover, Elysian and Future X.
Momentum, Simply, Mojo, CovAU and Nectr have all stopped accepting new customers.
Regulators have announced that the government price cap will rise by between one to nine per cent in Victoria, by seven per cent in SA, eleven per cent in south-east Queensland and between eight and 14 per cent in NSW for about 1 in 10 households on “default market offers”.
The price hikes are occurring because wholesale prices have increased to about six times what they were in April 2021.
Joel Gibson from consumer network One Big Switch has explained that smaller energy companies want to reduce their number of customers to cut their own costs.
“Smaller retailers are also more exposed to these skyrocketing wholesale prices if their customer base doesn’t shrink down, so they need people to leave,” he said.
“The tone of the letters from these smaller retailers says it all – if people don’t switch, their bills could skyrocket and smaller retailers could go under.”
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