When Kurt Baker stepped up to apologise for his company's 'serious governance failures,' few West Australians could have imagined the scale of what he was about to reveal: nearly 175,000 customers systematically overcharged $40 million by their own government's energy company.
Synergy, Western Australia's state-owned electricity retailer, had been quietly allowing customers to keep paying into closed accounts—even when no bills existed—since 2009.
For some unlucky customers, this meant being slugged with fake bills ranging from less than a dollar to tens of thousands of dollars.
The revelation has sent shockwaves through a state already grappling with rising energy costs, particularly affecting older Australians who often rely on government services and automatic payment systems.
The second scandal in eight months
This massive billing bungle wasn't Synergy's first rodeo with overcharging vulnerable customers. In July, the company was forced to refund $2.29 million after overcharging nearly 2,850 Centrelink customers through the Centrepay system—again, for closed accounts dating back to 2009.
The Economic Regulation Authority (ERA) found that Synergy had continued taking money from customers' Centrelink payments through automatic deductions even after they had closed their power accounts.
This breach particularly impacted vulnerable Western Australians relying on Centrelink support, potentially affecting their budgets and wellbeing.
'It's a kick in the guts. I've been paying my bills on time, and then I find out I've been overcharged by thousands of dollars'
The connection between these scandals runs deeper than coincidence. The Centrelink overcharging saga served as a catalyst, raising red flags that perhaps other types of payments might be slipping into closed accounts.
Once Synergy conducted a deep audit, they discovered the problem was far more widespread, affecting regular direct-debit customers and manual payments, not just those on Centrelink.
How the money stacks up
The numbers tell a sobering story of systematic billing failures. Almost 13,000 accounts accumulated more than $500 in overcharges, while 467 accounts racked up credits exceeding $5,000.
The majority of affected customers are residential—ordinary families and individuals who trusted their government-owned energy provider to get their bills right.
Most customers were overcharged less than $100, but some faced bills reaching thousands of dollars, money that for many seniors on fixed incomes represents significant financial hardship.
What is Synergy?
Synergy is government-owned and Western Australia's largest electricity generator and gas retailer.
It provides 52 per cent of electricity to households and businesses in the South West Interconnected System.
Coverage extends from Kalbarri in the north, east to Kalgoorlie and south to Albany.
Regulators sound the alarm: 'Just the tip of the iceberg'
Perhaps most concerning for Australian energy consumers is what regulators discovered during their investigation.
According to the Economic Regulation Authority of Western Australia (ERAWA), other energy companies may be guilty of similar overcharging, with a review currently underway to root out what officials called an 'endemic problem'.
ERAWA chair Steve Edwell warned that Synergy's $40 million bungle was just the tip of the iceberg, with the watchdog 'considering enforcement action' against other retailers.
This suggests the problem may extend well beyond Western Australia's borders, potentially affecting energy customers across the country.
The trust factor
Opposition Shadow Energy Minister Steve Thomas hasn't minced words about the broader implications: 'This is an issue of trust, the people of Western Australia have to be able to trust that their government departments are doing the right thing by them.'
Thomas highlighted what should be obvious to any billing system: a closed account should not be able to accept payments - 'that should be an absolute red light.'
For this to happen not once but twice at massive scale in one year suggests deep systemic issues.
What this means for your energy bills
The Synergy scandals offer important lessons for all Australian energy consumers, particularly those who favour the convenience of automatic payments.
Protecting yourself from billing errors
- Always confirm automatic payments are cancelled when closing any utility account
- Check your bank statements monthly for unexpected direct debits
- Keep records of account closures and cancellation confirmations
- Contact your energy provider immediately if you notice payments continuing after account closure
- Consider setting up account alerts for any automatic payments
From a customer perspective, this episode serves as a reminder to always double-check that automatic payments are cancelled when you close an account.
If you move house or switch energy providers, ensure your direct debits or Centrepay deductions are stopped and confirm you've settled the final bill.
Did you know?
Did you know?
Synergy has not mentioned paying any interest or additional compensation beyond returning the principal amount overcharged. Customers are essentially getting back the money they paid, likely without interest, meaning the company had an effectively interest-free loan from the public for years.
The bigger picture
The billing mistakes occur against a backdrop of significant financial strain at Synergy, as the company navigates a major energy transition.
While this doesn't excuse the overcharging blunders, it provides insight into an environment of tightening budgets, possibly underinvestment in systems, and immense pressure to transform the business.
This context became even more relevant when it was revealed that Synergy nearly required a $1 billion taxpayer bailout, with Energy Minister Reece Whitby approaching WA Treasury for almost $1 billion in extra operating subsidies in late 2024.
For Australian energy consumers, these revelations highlight the importance of staying vigilant about billing practices, regardless of whether your provider is government-owned or private.
Getting your money back
Synergy has committed to reimburse all affected customers, though the process has been slow. The ERA reported that the utility had been contacting affected customers since April, with around 30 per cent of the money owed paid back so far.
If you're a Synergy customer who suspects you may have been overcharged, contact Synergy on 13 13 53 or visit their website to enquire about potential refunds.
What This Means For You
The Synergy saga serves as a stark reminder that even government-owned utilities aren't immune to serious billing failures. For Australian seniors who often rely on the stability and trustworthiness of government services, these revelations are particularly troubling.
Have you experienced unexpected charges from your energy provider, or do you have concerns about automatic payment systems? We'd love to hear about your experiences with energy billing and any tips you might have for fellow readers navigating these systems.
Primary Source
https://au.finance.yahoo.com/news/aussies-overcharged-40m-electricity-bills-040445189.html
Synergy’s $40 Million Billing Bungle Rips Off Thousands of Aussies
Cited text: Almost 13,000 accounts accrued more than $500 in overcharges, while 467 accounts racked up credits of over $5,000.
Excerpt: Kurt Baker stepped up to apologise for his company's 'serious governance failures,' few West Australians could have imagined the scale of what he was about to reveal: nearly 175,000 customers systematically overcharged $40 million by their…
https://australian5.com/2025/10/11/synergys-40-million-billing-bungle-rips-off-thousands-of-aussies/
Synergy apologises after overcharging customers $40 million
Cited text: The overpayments range from amounts under a dollar, to thousands of dollars, according to Synergy CEO Kurt Baker, who said most of those affected were...
Excerpt: Kurt Baker stepped up to apologise for his company's 'serious governance failures,' few West Australians could have imagined the scale of what he was about to reveal: nearly 175,000 customers systematically overcharged $40 million by their…
https://freerepublic.com/focus/f-news/4345405/posts
WA’s Synergy overcharges customers $40 million on electricity bills—Australian Online News
Cited text: Synergy revealed Friday it had been charging customers for non-existent bills since 2009.
Excerpt: Synergy, Western Australia's state-owned electricity retailer, had been quietly allowing customers to keep paying into closed accounts—even when no bills existed—since 2009
https://australianonlinenews.com.au...es-customers-40-million-on-electricity-bills/
Synergy apologises after overcharging customers $40 million
Cited text: 'In many cases this has happened because Synergy's allowed customers to continue to pay to their closed account, even in the absence of a bill.'
Excerpt: Synergy, Western Australia's state-owned electricity retailer, had been quietly allowing customers to keep paying into closed accounts—even when no bills existed—since 2009
https://freerepublic.com/focus/f-news/4345405/posts
Synergy’s $40 Million Billing Bungle Rips Off Thousands of Aussies
Cited text: ‘I’ve been paying my bills on time, and then I find out I’ve been overcharged by thousands of dollars.
Excerpt: this meant being slugged with fake bills ranging from less than a dollar to tens of thousands of dollars
https://australian5.com/2025/10/11/synergys-40-million-billing-bungle-rips-off-thousands-of-aussies/
Synergy to Refund $2.29 Million After Overcharging Centrelink Customers—Australian Business Journal
Cited text: Synergy is refunding $2.29 million after overcharging nearly 2,850 Centrelink customers via Centrepay—even after accounts were closed.
Excerpt: In July, the company was forced to refund $2.29 million after overcharging nearly 2,850 Centrelink customers through the Centrepay system
https://theabj.com.au/2025/07/16/synergy-centrepay-refund-centrelink-overcharge-2025/
Synergy admits to overcharging customers by $40 million
Cited text: In July, WA’s Economic Regulation Authority found 2,845 instances where Synergy had continued to take money from customers using Centrepay after they ...
Excerpt: In July, the company was forced to refund $2.29 million after overcharging nearly 2,850 Centrelink customers through the Centrepay system
https://esdnews.com.au/synergy-admits-to-overcharging-customers-by-40-million/
Synergy to repay $2.29 million after overcharging Centrelink customers for electricity | YourLifeChoices
Cited text: WA’s economic watchdog has been probing issues related to customers paying their power bills using Centrepay, which allows for automatic deductions fr...
Excerpt: The Economic Regulation Authority (ERA) found that Synergy had continued taking money from customers' Centrelink payments through automatic deductions even after they had closed their power accounts
https://www.yourlifechoices.com.au/...harging-centrelink-customers-for-electricity/
Synergy to Refund $2.29 Million After Overcharging Centrelink Customers—Australian Business Journal
Cited text: This breach struck a vulnerable segment of Western Australians relying on Centrelink support, potentially impacting their budgets and wellbeing.
Excerpt: This breach particularly impacted vulnerable Western Australians relying on Centrelink support, potentially affecting their budgets and wellbeing
https://theabj.com.au/2025/07/16/synergy-centrepay-refund-centrelink-overcharge-2025/
Power Bill Bombshell: Synergy’s $40 Million Overcharge Scandal Shakes WA Customers
Cited text: Indeed, once Synergy did a deep audit, they found the problem was far more widespread—affecting regular direct-debit customers, manual payments, etc...
Excerpt: The Centrelink overcharging saga served as a catalyst, raising red flags that perhaps other types of payments might be slipping into closed accounts.
https://ts2.tech/en/power-bill-bombshell-synergys-40-million-overcharge-scandal-shakes-wa-customers/
Synergy apologises after overcharging customers $40 million
Cited text: Synergy is government-owned and WA’s largest electricity generator and gas retailer. It provides 52 per cent of electricity to households and business...
Excerpt: Synergy is government-owned and Western Australia's largest electricity generator and gas retailer.
https://freerepublic.com/focus/f-news/4345405/posts
Synergy’s $40 Million Billing Bungle Rips Off Thousands of Aussies
Cited text: According to the Economic Regulation Authority of WA (ERAWA), other energy companies may be guilty of similar overcharging, with a review currently un...
Excerpt: According to the Economic Regulation Authority of Western Australia (ERAWA), other energy companies may be guilty of similar overcharging, with a review currently underway to root out what officials called an 'endemic problem'.
https://australian5.com/2025/10/11/synergys-40-million-billing-bungle-rips-off-thousands-of-aussies/
Synergy to repay $2.29 million after overcharging Centrelink customers for electricity | YourLifeChoices
Cited text: Shadow Energy Minister Steve Thomas said the revelation raised a range of questions for both Synergy and Energy Minister Amber-Jade Sanderson.
Excerpt: Opposition Shadow Energy Minister Steve Thomas hasn't minced words about the broader implications: 'This is an issue of trust, the people of Western Australia have to be able to trust that their government departments are doing the right…
https://www.yourlifechoices.com.au/...harging-centrelink-customers-for-electricity/
Power Bill Bombshell: Synergy’s $40 Million Overcharge Scandal Shakes WA Customers
Cited text: Shadow Energy Minister Steve Thomas has been vocal about what he dubs Synergy’s “overcharging fiascos” eroding public trust [74].
Excerpt: Opposition Shadow Energy Minister Steve Thomas hasn't minced words about the broader implications: 'This is an issue of trust, the people of Western Australia have to be able to trust that their government departments are doing the right…
https://ts2.tech/en/power-bill-bombshell-synergys-40-million-overcharge-scandal-shakes-wa-customers/
Power Bill Bombshell: Synergy’s $40 Million Overcharge Scandal Shakes WA Customers
Cited text: He highlighted the obvious: a closed account should not be able to accept payments—“that should be an absolute red light,” Thomas said [75]. For it ...
Excerpt: Thomas highlighted what should be obvious to any billing system: a closed account should not be able to accept payments - 'that should be an absolute red light…
https://ts2.tech/en/power-bill-bombshell-synergys-40-million-overcharge-scandal-shakes-wa-customers/
Power Bill Bombshell: Synergy’s $40 Million Overcharge Scandal Shakes WA Customers
Cited text: From a customer perspective, this episode is a reminder: always double-check that automatic payments are canceled when you close an account. If you mo...
Excerpt: From a customer perspective, this episode serves as a reminder to always double-check that automatic payments are cancelled when you close an account.
https://ts2.tech/en/power-bill-bombshell-synergys-40-million-overcharge-scandal-shakes-wa-customers/
Power Bill Bombshell: Synergy’s $40 Million Overcharge Scandal Shakes WA Customers
Cited text: Notably, Synergy has not mentioned any interest or compensation beyond the principal amount overcharged. Customers are essentially getting back the mo...
Excerpt: Synergy has not mentioned paying any interest or additional compensation beyond returning the principal amount overcharged.
https://ts2.tech/en/power-bill-bombshell-synergys-40-million-overcharge-scandal-shakes-wa-customers/
Power Bill Bombshell: Synergy’s $40 Million Overcharge Scandal Shakes WA Customers
Cited text: Overlaying this story of billing mistakes is a broader context: Synergy is a company under significant financial strain, navigating a major energy tra...
Excerpt: The billing mistakes occur against a backdrop of significant financial strain at Synergy, as the company navigates a major energy transition.
https://ts2.tech/en/power-bill-bombshell-synergys-40-million-overcharge-scandal-shakes-wa-customers/
Power Bill Bombshell: Synergy’s $40 Million Overcharge Scandal Shakes WA Customers
Cited text: All this led to an extraordinary revelation earlier this year: Synergy nearly required a ~$1 billion taxpayer bailout. In late 2024, Energy Minister R...
Excerpt: This context became even more relevant when it was revealed that Synergy nearly required a $1 billion taxpayer bailout, with Energy Minister Reece Whitby approaching WA Treasury for almost $1 billion in extra operating subsidies in late…
https://ts2.tech/en/power-bill-bombshell-synergys-40-million-overcharge-scandal-shakes-wa-customers/
Synergy admits to overcharging customers by $40 million
Cited text: Synergy said it would reimburse all customers affected.
Excerpt: Synergy has committed to reimburse all affected customers
https://esdnews.com.au/synergy-admits-to-overcharging-customers-by-40-million/
Synergy to repay $2.29 million after overcharging Centrelink customers for electricity | YourLifeChoices
Cited text: The ERA said the utility had been contacting affected customers since April, with around 30 per cent of the money owed paid back so far.
Excerpt: The ERA reported that the utility had been contacting affected customers since April, with around 30 per cent of the money owed paid back so far
https://www.yourlifechoices.com.au/...harging-centrelink-customers-for-electricity/
Household electricity credit
Cited text: Contact Synergy on 13 13 53 or see their website.
Excerpt: contact Synergy on 13 13 53 or visit their website
https://www.wa.gov.au/government/publications/household-electricity-credit
Seniors Discount Club
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