Western Australia’s Economic Regulation Authority (ERA) has revealed that every major energy retailer in the state has overcharged customers in recent years, with state-owned utility Synergy singled out as the worst offender. The watchdog’s investigation, which focused primarily on Synergy but also examined other electricity and gas providers, found widespread issues with automatic payments being taken from closed accounts.
Key Findings
Synergy: Overcharged customers a staggering $40 million since 2009, affecting more than 170,000 accounts. The ERA has issued Synergy a compliance enforcement notice and warned it faces a $100,000 fine the maximum penalty under WA regulations, if it fails to refund affected customers by April 2026.
Horizon Power: Overcharged customers $213,353.
Kleenheat: Overcharged the largest number of customers, with 1,500 accounts affected.
Other providers: Six additional retailers were found to have overcharged customers but have already implemented processes to identify and refund overpayments.
Regulatory Context
The ERA collected data over the past two years, following the introduction of industry codes for electricity suppliers in February 2023 and for gas suppliers in 2024. These codes were designed to strengthen consumer protections, but the investigation shows compliance gaps remain.
Synergy’s breaches included continuing to accept Centrepay deductions from vulnerable customers even after their accounts had been closed. This practice disproportionately impacted low-income households who rely on Centrelink’s automatic payment system to manage bills.
What Happens Next
ERA chair Steve Edwell stressed that Synergy must make “every effort” to refund customers. Failure to comply could trigger the maximum fine, though critics argue the penalty is small compared to the scale of overcharging. Synergy has pledged to reimburse all affected customers, but the process is expected to take months given the volume of cases.
Broader Implications
The findings highlight systemic issues across WA’s energy sector:
Consumer trust has been undermined, particularly among vulnerable households.
Regulatory oversight is being tested, with calls for stronger enforcement powers.
Financial accountability is now a pressing issue, as refunds must be processed quickly to restore confidence.
The ERA’s investigation underscores the importance of robust compliance systems in utilities, especially as households face rising energy costs. For Synergy, the reputational damage may prove more costly than the fine itself, while other retailers are under pressure to demonstrate that their refund processes are effective and transparent.
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