Thousands of vulnerable customers across Western Australia were overcharged for electricity by Synergy. The state-owned utility has admitted the error and pledged full reimbursement dating back to 2009.
An investigation by the state’s economic regulator has uncovered a prolonged failure in customer billing systems. The overcharging affected Centrelink recipients, many of whom had closed their Synergy accounts but continued to have payments deducted.
According to the Economic Regulation Authority (ERA), Synergy—the largest energy retailer in Western Australia—improperly withdrew funds from up to 2,845 customers via Centrepay, a government-run service that automates bill payments from Centrelink support payments.
The issue spans more than a decade, with total overpayments amounting to $2.29 million. Despite regulatory constraints that would compel repayment to just 459 customers who were affected after February 2023, Synergy has committed to reimbursing all impacted individuals.
Long-Term Failure in Payment Oversight
The ERA’s review revealed that Synergy continued withdrawing money from Centrelink recipients even after their electricity accounts had been closed. According to the regulator, more than 1,000 customers were each owed over $500, with about half of the total refunds valued at $250 or less.
“This is a particularly concerning breach,” said ERA chair Steve Edwell, “given Synergy’s position as the largest retailer in the state and the vulnerability of this cohort of customers.” He added that proper systems should have flagged the continuation of payments on inactive accounts.
The ERA’s findings indicate that Synergy began contacting affected customers in April, and approximately 30 per cent of the funds owed have so far been returned. The utility has been instructed to complete repayments to the 459 most recent cases by November and undertake a full review of its systems to ensure safeguards are in place going forward.
Political Fallout and Response
The matter has prompted political concern, with Shadow Energy Minister Steve Thomas questioning the government’s handling of the situation.
According to Thomas, Synergy became aware of the breach in December 2024 but delayed notifying customers. “Simply saying our systems are complex does not pass the pub test,” he said, calling for more transparency and accountability.
In response, Energy Minister Amber-Jade Sanderson confirmed that an independent review of all billing systems at Synergy had been launched. “Customers using Centrepay should have confidence the system is working in their best interests,” she said.
According to Synergy CEO Kurt Baker, newly appointed to the role, the utility is taking “immediate steps” to identify all affected customers and will conduct a “thorough review” to avoid future incidents. He apologised on behalf of the company, acknowledging that vulnerable customers had been “let down”.
