ustralia is on the "precipice" of a UK-style energy crisis that could send many of its power retailers broke and fuel a surge of households unable to pay their bills, a leading expert has warned.
The soaring cost of wholesale energy has triggered widespread alarm among observers and there are fears a significant chunk of Australia's retail electricity market will be wiped out in the crunch.
New Zealand-based power provider ReAmped last night became the latest casualty of the squeeze, telling its customers to go elsewhere because it was no longer able to supply an affordable service.
The firm has about 80,000 customers across Australia's east coast but chief executive Luke Blincoe said it had taken the extraordinary decision to step back from the market.
Mr Blincoe said the company was urging customers to find a new deal quickly, suggesting they had little time to act before retail prices escalated further.
"The wholesale energy market has just become so extreme that we're now seeing a situation where wholesale prices are above retail prices," Mr Blincoe said.
"So, unless you're a generator, there is simply not a sustainable position in the retail marketplace.
"We're saying to our customers 'the best way we can save you money is actually ask you to switch away'.
"And now is the opportune time to do that while there are still some deals available."