Perth: WA’s state-owned energy provider, Synergy, has come under intense scrutiny after revelations that more than 170,000 customers were overcharged a staggering $40 million since 2009. The overpayments, ranging from a few cents to several thousand dollars, primarily affected residential customers, according to Synergy CEO Kurt Baker.
“This isn’t good enough, it’s not acceptable. We’ve let our customers down, so I do want to apologise,” Baker told ABC Radio Perth. He explained that the overcharging largely occurred because the utility allowed payments to continue on closed accounts, even when no active bills were issued. Synergy later clarified that close to 174,000 customers had been impacted.
Baker confirmed that affected customers would be contacted directly to arrange refunds, but warned the process could take several months. Customers would have the choice between receiving a cash refund or applying the amount as a credit toward future energy bills. He described the situation as a systemic failure, noting that Synergy’s internal systems should have flagged or prevented these erroneous payments.
The revelation follows a July report from the state’s economic watchdog, which found Synergy had taken $2.29 million in automatic Centrelink deductions from customers with closed accounts since 2009. The latest figures, uncovered through a comprehensive internal review, vastly exceed prior estimates. Baker said the average overcharge per account was around $230, with more than half of the affected customers overcharged less than $100.
When questioned about accountability, Baker focused on customer restitution and declined to say whether any Synergy employees would face disciplinary action. He also did not specify when he was first made aware of the full scale of the $40 million overcharging or when the state government was notified.
Synergy announced that it had already introduced measures to prevent overpayments on closed accounts and is collaborating with independent government reviewers to identify system improvements. Acting Energy Minister Simone McGurk confirmed the government became fully aware of the situation in late September and emphasized that the overcharging was “unacceptable.”
The scandal has drawn criticism from opposition figures, with WA Shadow Energy Minister Steve Thomas highlighting the breach of public trust. “The first question is how on earth does a closed account accept payments? Once you close your account, your account should be closed. That should be an absolute red light,” he told ABC Radio Perth. He warned that repeated failures in billing practices have shaken confidence in the utility.
Synergy, WA’s largest electricity generator and gas retailer, serves over half of the state’s electricity consumers across the South West Interconnected System, covering Perth and extending from Kalbarri to Kalgoorlie and Albany. The company’s CEO stressed that the organisation is now focused on rectifying past mistakes and preventing similar issues in the future, acknowledging the severity of a problem that has persisted for more than a decade.