Thousands of Australians are facing the frustrating reality of being overcharged by one of the country’s biggest energy providers. The company now stands accused of taking millions of dollars from customers who had already paid their bills — sparking outrage and a looming court battle.
Overcharges Affecting Thousands
Origin Energy is being taken to the Federal Court after the Australian Energy Regulator (AER) accused the company of overcharging more than 3,400 customers, totalling around $2.5 million. The alleged conduct took place over several years, between December 2019 and March 2025, and could amount to more than 77,000 separate breaches of national energy laws.
According to the regulator, customers who used Centrepay, a government service that allows people to pay bills directly from Centrelink benefits, were wrongly charged even after their accounts were closed or balances settled. In one extreme case, a customer was reportedly overcharged $11,000 over a two-year period.
The regulator says these errors were not just technical slip-ups — they reflect a pattern of behaviour that disproportionately affected Australians already experiencing financial hardship. Many of the customers caught up in the issue were using Centrepay to stay on top of essential bills like energy and rent.
Energy Regulator Steps In
The AER’s legal action targets four of Origin’s subsidiaries and claims the company breached the National Energy Retail Rules and National Energy Retail Law. The watchdog alleges that Origin knew about the overcharging problem but delayed implementing a fix, allowing the issue to continue for years.
The AER has asked the court to impose penalties, order customer compensation, and require an independently reviewed compliance program. Chair Claire Savage said the alleged conduct was particularly troubling because it affected vulnerable customers who could have used that money for essentials.
Origin Responds
In response to the allegations, Origin Energy has publicly apologised. The company said it first identified and self-reported the issue in 2021, working with Services Australia to return funds to affected customers. It claims to have improved its systems and procedures to better manage Centrepay deductions in the future.
An Origin spokesperson said the company had made “extensive improvements” to prevent a repeat of the incident and had worked closely with regulators throughout the process, reports Yahoo Finance.
A Matter of Trust
The case now heads to the Federal Court, where the outcome could shape how major energy providers manage customer payments in the future. For thousands of Australians, particularly those struggling to make ends meet, this isn’t just about compensation — it’s about fairness and accountability.
As the legal proceedings unfold, the controversy serves as a reminder that even large, trusted companies can fall short in safeguarding the finances of those who depend on them most. And in a cost-of-living crisis, every dollar counts — especially for those who can least afford to lose it.
