Synergy to Refund $2.29 M After Overcharging Customers

Prime Highlights:

Synergy overcharged nearly 2,850 former customers through compulsory Centrepay deductions.
The WA electricity retailer will repay the entire $2.29 million, including cases beyond regulatory necessities.

Key Facts:

The overcharging came about due to payments made from Centrelink on shut accounts.
Synergy has promised to repay all refunds by November 2025.

Key Background

“Centrelink customers overcharged with ‘synergy’ in automatic deductions” after electricity accounts had been closed, with more than 2,800 individuals impacted. Payments were made via Centrepay—a service that helps disadvantaged customers pay essential bills with Centrelink benefits. But due to system faults, the deductions persisted unreasonably for years, with a cumulative $2.29 million in overpayments.

The ERA launched an investigation and found that only 459 of those cases, totaling $239,250, were within the regulatory window where refunding is mandatory. Synergy’s new chief executive, Kurt Baker, has promised to refund all of the aggrieved customers, however, regardless of when the overcharging had occurred.

To date, July 2025, Synergy has paid out 30% of the amount, and most individual cases were for refunds less than $250. The remaining funds need to be paid out by November 30. Synergy is also overhauling its internal billing systems to prevent future errors, as required by the ERA.

The incident has evoked political interest, spearheaded by opposition spokespeople on energy who blasted the delay in releasing it. They were critical of the time gap between Synergy‘s internal identification of the issue in December 2024 and the current public outcry. Energy Minister Amber-Jade Sanderson has called for an independent probe into Synergy’s billing and handling of data practices.

As WA’s largest electricity retailer, Synergy services millions of South West Interconnected System customers with power and gas. The scandal has prompted the demand for tighter regulation and more transparent practices, especially when dealing with vulnerable customers who are dependent on government subsidies. In the future, Synergy will have to work towards restoring public confidence by enhancing accountability and improving trust in its finance transactions.