You've paid your dues and then some. But can you believe that unjustifiable price hiking is occurring in these times of increasing living costs?

The state-owned powerhouse, Synergy, responsible for lighting up thousands of West Australian households, has admitted to inflating wholesale electricity prices and consequently agreed to credit its eligible residential customers.

Now, you may be wondering about the amount involved. The credit value amounts to approximately $28, which will be applied to your next power bill.

Collectively, this settlement amounts to a staggering $30 million. This traces back to the findings of the Electricity Review Board in November of the previous year.

Following Synergy's admission of breaching wholesale market rules, eligible customers can expect to receive a credit as compensation. Image from Shutterstock

It was discovered that Synergy had unreasonably inflated prices on around 11,000 occasions in 2016 and 2017.

But there's good news! With credit going directly back to you rather than to the wholesale market buyers, the Economic Regulation Authority believes this will give some relief amid the current cost of living pressures.

The credits to South West Interconnected System customers will be made over the next four months

Synergy has made strides to ensure this fiasco doesn't repeat. They've agreed to an independent review of their contravening conduct, which will include a deep dive into their market bidding behaviour.

Mr Edwell shares the sentiment of those who find it unacceptable for dominant generators to engage in price inflation.

'Electricity generators must ensure that the costs underpinning their wholesale market prices are consistent with the market rules. This is especially the case for generators who have market power.' he said.

The household credits aren’t compensation for overcharge but a ‘Result of Synergy's agreement with the ERA that the ERA will not seek a civil penalty for the contraventions of the wholesale electricity market rules.’ the company stated.

Over the course of the next four months, credits to the South West Interconnected System will be issued, ensuring timely compensation for affected parties. Image by Rodolfo Clix from pexels

But, Synergy seems keen on rectifying their misdeeds.

They've been working diligently with the authority to ensure that all their bidding behaviour aligns with market rules.

A spokeswoman confirmed, 'Synergy is committed to complying with the wholesale electricity market rules and engaging with the ERA going forward so that it remains compliant.'

Key Takeaways

• State-owned electricity company Synergy has agreed to give eligible residential customers credit on their next bill after it was found to have unreasonably inflated wholesale prices.
• The Economic Regulation Authority negotiated for the $30 million to be paid directly to Synergy customers rather than back to the wholesale market buyers.
• Synergy will also undertake an independent review of its contravening conduct, including its market bidding behaviour.
• Synergy claimed its conduct did not directly affect the price of electricity for residential customers, and the household credits are not compensation for an overcharge.

We encourage all of you affected Synergy customers to check your upcoming bills for the credit.

Members, what are your thoughts on Synergy's agreement to provide credit to its eligible residential customers after unreasonably inflating wholesale electricity prices? Will this credit give relief to customers facing increasing living costs?

 

[Jest]

insurances, energy. this builds my confidence no end.

 

[RTS]

The Western Australian government, under Brian Burke, almost doubled electricity prices overnight, back in 1979.
They treated the state owned electricity company as their own piggy bank.
The extra money raised was used to cover payouts to investors who had invested in a merchant bank that went bust.
The whole deal was called WAInc.
The bloke who set up the scam bank, Laurie Connel, died before being taken to court.
Maybe there was no ACCC back then.

 

[Trudi]

The Western Australian government, under Brian Burke, almost doubled electricity prices overnight, back in 1979.
They treated the state owned electricity company as their own piggy bank.
The extra money raised was used to cover payouts to investors who had invested in a merchant bank that went bust.
The whole deal was called WAInc.
The bloke who set up the scam bank, Laurie Connel, died before being taken to court.
Maybe there was no ACCC back then.

Interesting. I lived in WA from 1974 to 1994 and I can assure you that Brian Burke was NOT the Premier in 1979.

I do recall what is referred to as the Great Inflation of the 70s when prices were skyrocketing and, to make things more interesting, the worlds worst Treasurer ever, John Howard, imposed a wages embargo. That meant prices continued to rise exponentially, but income was frozen. With three young kids, I found it a struggle to make ends meet.

 

[Cheezil]

You've paid your dues and then some. But can you believe that unjustifiable price hiking is occurring in these times of increasing living costs?

The state-owned powerhouse, Synergy, responsible for lighting up thousands of West Australian households, has admitted to inflating wholesale electricity prices and consequently agreed to credit its eligible residential customers.

Now, you may be wondering about the amount involved. The credit value amounts to approximately $28, which will be applied to your next power bill.

Collectively, this settlement amounts to a staggering $30 million. This traces back to the findings of the Electricity Review Board in November of the previous year.

View attachment 23577

Following Synergy's admission of breaching wholesale market rules, eligible customers can expect to receive a credit as compensation. Image from Shutterstock

It was discovered that Synergy had unreasonably inflated prices on around 11,000 occasions in 2016 and 2017.

But there's good news! With credit going directly back to you rather than to the wholesale market buyers, the Economic Regulation Authority believes this will give some relief amid the current cost of living pressures.

The credits to South West Interconnected System customers will be made over the next four months

Synergy has made strides to ensure this fiasco doesn't repeat. They've agreed to an independent review of their contravening conduct, which will include a deep dive into their market bidding behaviour.

Mr Edwell shares the sentiment of those who find it unacceptable for dominant generators to engage in price inflation.

'Electricity generators must ensure that the costs underpinning their wholesale market prices are consistent with the market rules. This is especially the case for generators who have market power.' he said.

The household credits aren’t compensation for overcharge but a ‘Result of Synergy's agreement with the ERA that the ERA will not seek a civil penalty for the contraventions of the wholesale electricity market rules.’ the company stated.

View attachment 23578

Over the course of the next four months, credits to the South West Interconnected System will be issued, ensuring timely compensation for affected parties. Image by Rodolfo Clix from pexels

But, Synergy seems keen on rectifying their misdeeds.

They've been working diligently with the authority to ensure that all their bidding behaviour aligns with market rules.

A spokeswoman confirmed, 'Synergy is committed to complying with the wholesale electricity market rules and engaging with the ERA going forward so that it remains compliant.'

Key Takeaways

• State-owned electricity company Synergy has agreed to give eligible residential customers credit on their next bill after it was found to have unreasonably inflated wholesale prices.
• The Economic Regulation Authority negotiated for the $30 million to be paid directly to Synergy customers rather than back to the wholesale market buyers.
• Synergy will also undertake an independent review of its contravening conduct, including its market bidding behaviour.
• Synergy claimed its conduct did not directly affect the price of electricity for residential customers, and the household credits are not compensation for an overcharge.

We encourage all of you affected Synergy customers to check your upcoming bills for the credit.

Members, what are your thoughts on Synergy's agreement to provide credit to its eligible residential customers after unreasonably inflating wholesale electricity prices? Will this credit give relief to customers facing increasing living costs?

Good news but what about ASIC chasing down the supermarkets that seem to be getting away with gouging customers pockets post pandemic?

 

[RTS]

I

Interesting. I lived in WA from 1974 to 1994 and I can assure you that Brian Burke was NOT the Premier in 1979.

I do recall what is referred to as the Great Inflation of the 70s when prices were skyrocketing and, to make things more interesting, the worlds worst Treasurer ever, John Howard, imposed a wages embargo. That meant prices continued to rise exponentially, but income was frozen. With three young kids, I found it a struggle to make ends meet.

I thought it was in 79 but it was the early 80s. Wikipedia's entry for WA Inc has full details.

 

[Sandy36]

This did happen to us last year just as Mark Mcgowen gave every household a top up to help with the cost of living, we are a 2 person household with solar panels creating power and received a $400 odd bill, when I rang Synergy about the $200 + price difference, I was politely told it must have been an estimated price, scratching my head at $200+ and them saying they couldn’t investigate it. Seems I had good reason to believe I was right !

 

[Gaena]

Sometimes being dumb, or rather acting it can result in a win.When checking through an electricity bill I received from Synergy I noticed the word estimated and thought "hang on" we have our meter read each cycle so there should be no need to estimate it. Spoke with a very nice and helpful customer service officer who told me that an estimation was unacceptable in our case and so she rang Western Power to find out why it had been done. Turned out that They were short of meter readers for our area so had estimated the bill according to the result from the 2 previous billing cycles. She also told me that it was common for some meter readers to report that they were unable to access the meter and so an estimation would be given, so not true in our case, the meter box is on the roadside at the end of the driveway and if the meter reader could not see it, they need to be declared legally blind. She also said that it was quite common for the meter readers to say they could not access the meter because of dogs on the property, again not in our case we do not have dogs. A refund was calculated and deducted from our next bill, since that phone call we have not had a problem, fingers crossed it will not happen again. It pays to actually read the bill and not just look at the total owing.

 

[KarinP]

You've paid your dues and then some. But can you believe that unjustifiable price hiking is occurring in these times of increasing living costs?



The state-owned powerhouse, Synergy, responsible for lighting up thousands of West Australian households, has admitted to inflating wholesale electricity prices and consequently agreed to credit its eligible residential customers.

Now, you may be wondering about the amount involved. The credit value amounts to approximately $28, which will be applied to your next power bill.



Collectively, this settlement amounts to a staggering $30 million. This traces back to the findings of the Electricity Review Board in November of the previous year.



Following Synergy's admission of breaching wholesale market rules, eligible customers can expect to receive a credit as compensation. Image from Shutterstock

It was discovered that Synergy had unreasonably inflated prices on around 11,000 occasions in 2016 and 2017.



But there's good news! With credit going directly back to you rather than to the wholesale market buyers, the Economic Regulation Authority believes this will give some relief amid the current cost of living pressures.



The credits to South West Interconnected System customers will be made over the next four months

Synergy has made strides to ensure this fiasco doesn't repeat. They've agreed to an independent review of their contravening conduct, which will include a deep dive into their market bidding behaviour.



Mr Edwell shares the sentiment of those who find it unacceptable for dominant generators to engage in price inflation.



'Electricity generators must ensure that the costs underpinning their wholesale market prices are consistent with the market rules. This is especially the case for generators who have market power.' he said.



The household credits aren’t compensation for overcharge but a ‘Result of Synergy's agreement with the ERA that the ERA will not seek a civil penalty for the contraventions of the wholesale electricity market rules.’ the company stated.



Over the course of the next four months, credits to the South West Interconnected System will be issued, ensuring timely compensation for affected parties. Image by Rodolfo Clix from pexels

But, Synergy seems keen on rectifying their misdeeds.



They've been working diligently with the authority to ensure that all their bidding behaviour aligns with market rules.



A spokeswoman confirmed, 'Synergy is committed to complying with the wholesale electricity market rules and engaging with the ERA going forward so that it remains compliant.'

Key Takeaways

State-owned electricity company Synergy has agreed to give eligible residential customers credit on their next bill after it was found to have unreasonably inflated wholesale prices.
The Economic Regulation Authority negotiated for the $30 million to be paid directly to Synergy customers rather than back to the wholesale market buyers.
Synergy will also undertake an independent review of its contravening conduct, including its market bidding behaviour.
Synergy claimed its conduct did not directly affect the price of electricity for residential customers, and the household credits are not compensation for an overcharge.

We encourage all of you affected Synergy customers to check your upcoming bills for the credit.



Members, what are your thoughts on Synergy's agreement to provide credit to its eligible residential customers after unreasonably inflating wholesale electricity prices? Will this credit give relief to customers facing increasing living costs?

 

[KarinP]

And so they should. This sort of artificial price inflation is common in the private retail market on the east coast.
It's absolutely outrageous in WA where we have a monopoly supplier

 

[Ezzy]

Just can't rely on anyone these days. Years ago l received a letter stating my water metre could not be read & l needed to clear a path to the meter. I did nothing & have not had such a communication again. How many occassions do meter readers of any kind just do an estimate? In the case of a water metre l believe the hand held device for recording data actually has information stating the location of this.