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Posted on 10/09/2025 10:10:24 PM PDT by nickcarraway
Synergy is facing new revelations it has overcharged West Australians for power. (ABC News: Cason Ho)
More than 170,000 customers have been overcharged a total of $40 million by WA's state-owned energy retailer Synergy since 2009, it has been revealed.
The overpayments range from amounts under a dollar, to thousands of dollars, according to Synergy CEO Kurt Baker, who said most of those affected were residential customers.
"We've accepted payments to approximately 170,000 closed accounts, resulting in overpayments," he told ABC Radio Perth.
"In many cases this has happened because Synergy's allowed customers to continue to pay to their closed account, even in the absence of a bill."
Photo of Power Poles with Perth City Buildings in the background Synergy provides 52 per cent of electricity to customers in the South West Interconnected System. (ABC News: Glyn Jones)
Synergy later clarified that close to 174,000 customers had been affected.
Refunds to take months Mr Baker said Synergy would contact customers directly to issue refunds, but the process was likely to take several months.
"This isn't good enough, it's not acceptable, we've let our customers down, so I do want to apologise," he said.
A person holding a Synergy bill. Some 170,000 Synergy customers have been overcharged tens of millions of dollars altogether. (ABC News: James Carmody)
"Our systems should have identified or stopped these payments being made."
It comes after a report by the state's economic watchdog in July found Synergy had taken $2.29 million in automatic deductions from Centrelink payments from customers whose Synergy accounts were closed, since 2009.
What is Synergy? Synergy is government-owned and WA’s largest electricity generator and gas retailer.
It provides 52 per cent of electricity to households and businesses in the South West Interconnected System.
The system covers Perth and extends from Kalbarri in the north, east to Kalgoorlie and south to Albany.
Source: Synergy website
Synergy's new figures, which Mr Baker said were uncovered by a "comprehensive review" following July's revelations, vastly eclipse the extent of overcharging previously uncovered.
"The total value across the 170,000 accounts is approximately $40 million," Mr Baker said.
"The average amount is $230. More than half is less than $100." Synergy said customers would be able to choose if they wanted a cash refund or credit for future bills.
CEO alerted 'in recent times' Mr Baker said he was made aware of the scope of the $40 million bungle in "recent times" but would not clarify when, or when Synergy alerted the state government.
He also refused to clarify if any Synergy staff would be sacked over the matter, saying his focus was on contacting customers and issuing refunds.
A mid-shot of Synergy CEO Kurt Baker standing in a suit and checked business shirt wearing spectacles. Synergy CEO Kurt Baker has apologised, saying the utility has let customers down. (ABC News: Cason Ho)
Mr Baker said Synergy had been alerted, over the years, by customers who had been overcharged in this fashion, who were refunded.
But when asked if anyone in Synergy raised this as a red flag indicating a broader issue, he only referenced the July Centrepay incident raised by the Economic Regulation Authority earlier this year.
Synergy said measures had been implemented to identify when overpayments were made to closed accounts.
It said it was working with the state government's independent reviewers to identify potential improvements to its system.
Lack of trust WA's Shadow Energy Minister Steve Thomas said Synergy's overcharging fiascos had eroded public trust in the utility.
A man in a dark suit jacket, white collared shirt and striped tie. He stands in front of trees. Shadow Energy Minister Steve Thomas says trust in Synergy to get bills right has been eroded. (ABC South West WA: Jacqueline Lynch)
"The first question is how on earth does a closed account accept payments? Once you close your account, your account should be closed," he told ABC Radio Perth.
"That should be an absolute red light." "How do people trust Synergy to get their bills right?
"Twice now this year, it's been proved that that trust is misplaced."
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Maybe they were on a flat bill and set up ACH payments scheduled every month?
This sounds fishy.
Sounds like folks had autopay and didn’t stop that when they closed their accounts.
So an average over payment of less than $1.23 per month for 16 years.
It's easy to get rich when you have a huge customer base - as long as you're not greedy about it. The attorneys will write it off as a rounding error and get richer doing it - and the court costs will get passed onto the customer base.
And a law firm will sue over that...
🤔🤔🤔
Do i even need to explain the concept of closed account and a refund to that “closed” account…… just when you think you have seen government incompetence at it’s finest, they keep doubling down…
Oops!
Sorry!
By the way, you wouldn’t happen to have any firearms, would you?
Mind if we take a look?
Apologizes??????
How about *refunds the money they stole*???????
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