Thousands of Australians will share in a hefty payout after one of the country’s largest energy retailers was accused of misleading customers on the cost of its plans.
Origin Energy will refund $270,000 spread across more than 4500 customers after the consumer watchdog analysed claims that the company may have misrepresented some of its pricing options.
Origin will be forced to give refunds to more than 4500 customers. Chris Hopkins
Each customer is expected to receive about $60.
The Australian Competition and Consumer Commission’s (ACCC) began the investigation after a complaint from consumer advocacy group CHOICE.
The group accused Origin of telling customers its “Ongoing Saver” plan was cheaper on a long-term basis than the “Basic” plan.
However, CHOICE alleged that some customers were actually charged more on the “Saver” plan than the “Basic” plan.
Origin has not admitted to breaches of Australian Consumer Law, but chosen to offer refunds during the ACCC investigation.
Commissioner Anna Brakey said retailers were required to ensure promised savings were actually passed on to customers.
“Electricity retailers that claim or suggest savings for consumers on their plans, including in the name of the plan, must ensure that the savings are actually delivered to customers for the life of the plan,” she said.
“Energy plans are complex, and the mix of usage and supply charges makes it difficult for many consumers to assess potential savings.
“Retailers should provide clear and accurate information about their plans to help consumers make informed decisions.”
The ACCC said it would not take any further action after Origin offered the refunds and for its compliance with the investigation.
Current customers will be given the option of requesting a refund or automatic credit, while former customers will be contacted directly by the company to discuss compensation.
Origin said only 0.5 per cent of its customers had been impacted by the “mistake”.
“[These customers] paid an average total of $28 more than they should have,” an Origin spokesperson told nine.com.au.
“We have since made improvements and are in the process of refunding these customers an average amount of around $60.”
The company has also been taken to court by Australia’s energy watchdog over allegations it overcharged customers by millions of dollars.
The Australian Energy Regulator (AER) claims thousands of customers continued to be charged for using their Centrepay accounts after closing them, despite having paid the full amounts owed.
Between December 2019 and March 2025, it is alleged 77,000 breaches of this nature took place, with one customer allegedly being overcharged by $11,000 within two years.
Centrepay is a government bill-paying service where people use payments from Centrelink to make regular payments for goods and services.