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.”
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.
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 it had since implemented measures 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.
Synergy provides 52 per cent of electricity to customers in the South West Interconnected System. (ABC News: Glyn Jones)
“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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