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State-owned electricity retailer Synergy has overcharged 2845 of its most vulnerable customers a collective $2.29 million since 2009.
Synergy was forced to repay the money and apologise after the over-charges were reported to WA’s utility watchdog, the Economic Regulation Authority.
Some of the state’s most vulnerable people were overcharged on their Synergy bills.Credit: Luis Enrique Ascui
The authority found Synergy breached its code of conduct by failing to tell customers within 10 business days that they had been overcharged.
Synergy reported to the authority that it continued to accept Centrepay payments from the customers despite their electricity accounts being closed.
Centrelink customers can set up Centrepay accounts to deduct payments for utilities like electricity and water before they receive the rest.
The Economic Regulation Authority said this equated to about $2.29 million in overcharges since 2009 – around 1000 customers owed more than $500. Synergy said about half of all refunds were $250 or less.
Authority Chair Steve Edwell said the breach was particularly concerning given Synergy’s position as the largest retailer in the state and the vulnerability of the customers on Centrelink support.
“As a sophisticated and large retailer, we would expect Synergy to have systems in place that would have identified these payments accruing in closed accounts,” he said.
“We also expect Synergy to make changes to its customer management systems so that these sorts of payments are automatically flagged and dealt with.”
Synergy was issued an enforcement notice to refund the 459 customers it overcharged a collective $240,000 since 2023, but the ERA said it expected the utility to repay all the $2.29 million.
Synergy has repaid about 30 per cent of the $240,000 owed since it started contacting impacted customers in April.
Synergy chief executive Kurt Baker apologised.
“We recognise that the Centrepay bill management system is in place to support vulnerable customers and in this instance, they were let down,” he said.
“Our systems are complex and identifying impacted customers took some time. As soon as possible after Centrepay overpayments were confirmed, we took steps to resolve the issue and are continuing to do so.
“This includes putting measures in place to stop Centrepay overpayments, contacting affected customers and making refunds as a priority.
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“Our commitment to making this right has guided our approach and we will continue working to contact and refund affected customers, as well as keeping the ERA and Services Australia updated as we progress towards the rectification notice requirements.”
Baker said Synergy was reviewing its systems to look for any more overpayments.
After unearthing the issues at Synergy, the authority looked into the six other electricity and gas retailers in the state that use Centrepay, but said it did not believe it was a widespread issue.
Energy Minister Amber-Jade Sanderson was contacted for comment.
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