AER Alleges Origin Energy Overcharged Former Centrelink Customers by $2.5 Million via Centrepay
The Australian Energy Regulator (AER) has alleged that Origin Energy overcharged former Centrelink customers through Centrepay deductions by about $2.5 million. This overcharging took place across more than 77,000 Centrepay deductions, impacting over 3,400 customers who had closed their accounts and owed nothing, including one case involving $11,000.
The period of overcharging spans from December 2019 to March 2025. The AER claims that Origin Energy failed to inform affected customers about these overcharges or refund them within the required timeframe established by market rules.
AER chair Clare Savage highlighted that many of the affected customers were likely economically vulnerable. As a result, the AER will pursue court orders that may include fines, declarations, compensation for customers, coverage of legal costs, and the implementation of an independently reviewed compliance program.
Earlier in May 2024, a Guardian investigation revealed systemic failures with Centrepay, identifying Origin Energy as the largest Centrepay user in the energy market. This led to calls for reforms and a government review of the system.
Other energy companies have faced penalties for mishandling Centrepay deductions: Alinta Energy was fined over $1 million, and AGL received a $25 million penalty. Origin's alleged breaches relate to seven times the number of customers affected compared to AGL's 483 customers.
In response, Origin stated that it self-reported overpayments to Services Australia in 2021 and collaborated with Services Australia to refund customers. The company apologized for not properly managing Centrepay deductions and noted that it has since improved the system. Around the time of these proceedings, Origin Energy's market value rose to approximately $19.2 billion.
