An investigation by Western Australia's Economic Regulation Authority (ERA) has found that seven energy retailers overcharged customers by taking automatic payments from closed accounts. The inquiry, which focused on state-owned utility Synergy and six other providers, revealed that Synergy had overcharged 174,000 customers a total of about $40 million since 2009.
The ERA collected data over the past two years, from when industry codes were implemented for electricity suppliers in February 2023 and for gas suppliers in 2024. Synergy was the worst offender, followed by Horizon Power, which overcharged customers $213,353, while Kleenheat overcharged the most customers — 1,500 of them.
All seven retailers have begun refunding customers. The ERA issued Synergy a compliance enforcement notice, but found the other six providers had already implemented processes to identify and refund overpayments. ERA chair Steve Edwell said Synergy risked a fine of $100,000 if it did not refund the $40 million by April 2026.
Synergy said it had self-reported the overpayments and had returned $1.7 million to 1,356 customers as of November 7, along with $198,000 in goodwill payments. CEO Kurt Baker apologized in October, stating the situation was "not acceptable." WA Premier Roger Cook expressed anger, calling it an oversight and neglect by Synergy.
