The state-owned energy utility in Western Australia, Synergy, has acknowledged overcharging customers by approximately $40 million over the past 15 years. The company revealed on Friday that around 174,000 customers were affected by this overpayment, primarily related to charges on accounts that had already been closed.
According to Kurt Baker, Synergy’s chief executive, the issue arose when customers continued to make payments to their closed accounts, often without receiving a bill. Baker stated, “In many cases, this has happened because Synergy allowed customers to continue to pay to their closed account, even in the absence of a bill,” during an interview with ABC Perth.
Synergy confirmed that it has identified all affected customers and will reach out to them directly. Notably, more than half of the overpayments amount to $100 or less. These payments, some dating back to 2009, were made through various methods including BPAY, direct debit, EFTPOS, and Australia Post.
The company reiterated its commitment to addressing the situation, stating, “We have a responsibility and obligation to detect and return customer overpayments to accounts quickly.” Baker emphasized the urgency of rectifying the issue, asserting, “Our priority is to return overpaid amounts to impacted customers.”
To prevent future occurrences, Synergy has conducted internal reviews and implemented measures aimed at identifying overpayments on closed accounts. In addition, the company has collaborated with independent reviewers appointed by the state government and has self-reported the overpayments to the Economic Regulation Authority.
Baker expressed the seriousness with which Synergy takes this matter, highlighting the expectations customers have regarding the reliability of payment systems and governance. “We have taken a diligent approach to identifying all impacted customers and set up a dedicated and specialized customer response team to contact them and make refunds,” he added.
This revelation comes on the heels of Synergy’s admission in July that it had overcharged over 2,800 Centrelink recipients by $2.29 million since 2009. Following these findings, the company was compelled to repay the funds and issue an apology after the overcharges were reported to the state’s utility watchdog, the Economic Regulation Authority. The authority determined that Synergy had breached its code of conduct by failing to inform customers within 10 business days about the overcharges.
As Synergy moves to resolve these financial discrepancies, the focus remains on ensuring that affected customers receive the refunds they are owed.
