Australia's first community owned energy retailer, Enova, has been placed in voluntary administration.

In an email sent to customers, the company said the energy crisis affecting Australia's east coast had an "unbearable" effect on the company's ability to operate.

The company focuses on providing energy from renewable sources.

About half of its energy supply is purchased from its customers' rooftop solar, while the other half is typically provided by Victorian-based retailer Diamond Energy.

But Enova said it had not been able to secure a new fixed pricing arrangement after its agreement with Diamond Energy came to an end.

Enova said that would have meant the business became "fully exposed to severely inflated wholesale energy prices" from July 1.

When combined with a cap on customer pricing, Enova said it was no longer financially viable.

Chief executive Felicity Stening said in a statement that the market was "broken" and did not support small retailers.

"The current diabolical state of the energy market, combined with the high wholesale market energy prices and the cap on customer pricing, has made it impossible for Enova Energy and many other small retailers to operate," she said.

"In addition, the constant raft of state and federal government regulatory changes is adding to the market complexities and have caused Enova delays in being able to fund and resource energy innovation."

Enova advised that its entire team was made redundant as part of the administration process.

Most staff are based in the New South Wales Northern Rivers region, where the company was started.

Cathro & Partners has been appointed to oversee the administration process.

The energy crisis and rising gas prices have had flow-on effects for manufacturers as well.

Major employers and lobby groups are warning the high prices could be force them to shut or move offshore.

A brick manufacturer announced it would shut its doors last week, citing high energy prices.

What does this mean for customers?

Customers have been advised that their electricity will not be disconnected.

Cathro & Partners said the Australian Energy Regulator (AER) had the power to appoint new retailers for customers under the Retailer of Last Resort scheme.

Customers will be transferred automatically to a new retailer.

Any bills issued by Enova before the transfer need to be paid.

After the transfer, Enova customers can expect to be contacted by their new retailer to arrange payment arrangements moving forward.

Enova said customers who did not wish to transfer to the retailer identified by the AER had the right to change their provider without penalty.

Australia's first community-owned energy provider

Enova opened its doors in Byron Bay in 2016 after raising $3.8 million from 1,090 investors.

It was first set up as a social enterprise, with a focus on supplying renewable energy.

Its founders were inspired by the anti-coal seam gas movement — in particular a blockade in 2014 that helped prevent gas exploration at a site in nearby Bentley.

Enova services 13,200 customers across NSW and South East Queensland.

This year Enova was awarded a five-star rating by Greenpeace in its Green Energy Guide for providing clean energy and avoiding pollution and environmental harm.

Both Enova Community Energy and retail arm Enova Energy have entered administration.

Not-for-profit arm Enova Community will remain in operation.