Home / Business and Economy / Origin Energy Overcharges Centrelink Customers $2.5M
Origin Energy Overcharges Centrelink Customers $2.5M
22 Dec
Summary
- Origin Energy allegedly overcharged 3,400 customers $2.5 million.
- Overcharging occurred over six years through Centrepay deductions.
- The regulator alleges Origin knew of system flaws since 2017.
Origin Energy faces legal proceedings for allegedly overcharging thousands of former customers through the Centrepay system, resulting in a combined $2.5 million in alleged overpayments. The Australian Energy Regulator (AER) has accused the company of more than 77,000 breaches, with overcharging persisting from December 2019 until March 2025. These alleged actions impacted over 3,400 customers who had closed their accounts.
The AER expressed significant concern, noting that many affected customers likely experienced economic vulnerability and could have used the overcharged money for essential expenses. The regulator alleges that Origin Energy was aware of potential system issues allowing overcharging as early as 2017. This case draws parallels to previous penalties imposed on AGL and Alinta Energy for similar Centrepay mishandling.
Origin Energy stated it self-reported the overpayments in 2021 and worked with Services Australia to refund customers, issuing an apology for the mismanagement. The company claims to have since improved its deduction systems. The AER is seeking fines, compensation, and a compliance program as part of the legal action.
