Government fails to audit alleged $700,000 overpayments to AGL
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In a world where trust in corporations and government systems is paramount, the recent revelations surrounding AGL's use of Centrepay have raised serious concerns.
The energy giant, a household name for many Australians, has been caught up in a scandal that affected vulnerable Australians, many of whom had not been AGL customers for years.
A Guardian Australia investigation has uncovered that the Centrepay system may have been exploited instead of safeguarding the vulnerable due to a lack of oversight.
The investigation found that more than $700,000 in Centrepay payments were taken from approximately 575 former AGL customers despite no longer receiving services from the company.
Services Australia, the agency responsible for administering Centrepay, has also been working to retrieve overpayments made to Ergon Energy, another energy company.
The investigation also revealed that Services Australia has not conducted an audit of AGL's or Ergon Energy's use of Centrepay in the past two years despite these overpayment issues coming to light.
When questioned about the absence of audits, Services Australia spokesperson Hank Jongen emphasised that compliance efforts are ongoing and not solely reliant on formal audits.
‘We have direct lines of communication with Centrepay-approved businesses and prioritise working with them directly to become and remain compliant,’ Jongen said.
‘We work closely with regulators and refer cases to them to investigate to ensure they meet legislative requirements, including consumer protection legislation.’
The government is currently reviewing the Centrepay system, with ‘compliance is one of the focus points of our review’.
‘We’ll have more to say on this soon,’ Jongen said.
Meanwhile, the Australian Energy Regulator has initiated federal court proceedings against AGL over its use of Centrepay, highlighting that the government provided daily updates to AGL on its Centrepay usage, which should have flagged the issue of former customers still being charged.
AGL's defence claimed that it had no control over stopping the deductions, which were managed by Services Australia, and that it had informed some customers to cancel their Centrepay deductions upon leaving AGL.
Despite these claims, the overpayments remained as credits on the accounts of former customers, diverting funds from the intended recipients' bank accounts.
In one case, about $4,111 was taken from a person's welfare payments nearly four years after they stopped being an AGL customer.
All the money has since been refunded, and AGL has stated that it acted promptly upon discovering the overpayments, reaching out to Services Australia to cancel the deductions and facilitate refunds.
‘Since becoming aware of the issue, AGL has engaged with Services Australia on a remediation program aimed at improving its processes,’ a spokesperson for the AGL said.
Have you or someone you know been affected by issues with Centrepay or similar services? Share your experiences in the comments below.
The energy giant, a household name for many Australians, has been caught up in a scandal that affected vulnerable Australians, many of whom had not been AGL customers for years.
A Guardian Australia investigation has uncovered that the Centrepay system may have been exploited instead of safeguarding the vulnerable due to a lack of oversight.
The investigation found that more than $700,000 in Centrepay payments were taken from approximately 575 former AGL customers despite no longer receiving services from the company.
An investigation revealed that over $700,000 in Centrepay payments were dedicated from former customers. Credit: Shutterstock
Services Australia, the agency responsible for administering Centrepay, has also been working to retrieve overpayments made to Ergon Energy, another energy company.
The investigation also revealed that Services Australia has not conducted an audit of AGL's or Ergon Energy's use of Centrepay in the past two years despite these overpayment issues coming to light.
When questioned about the absence of audits, Services Australia spokesperson Hank Jongen emphasised that compliance efforts are ongoing and not solely reliant on formal audits.
‘We have direct lines of communication with Centrepay-approved businesses and prioritise working with them directly to become and remain compliant,’ Jongen said.
‘We work closely with regulators and refer cases to them to investigate to ensure they meet legislative requirements, including consumer protection legislation.’
The government is currently reviewing the Centrepay system, with ‘compliance is one of the focus points of our review’.
‘We’ll have more to say on this soon,’ Jongen said.
Meanwhile, the Australian Energy Regulator has initiated federal court proceedings against AGL over its use of Centrepay, highlighting that the government provided daily updates to AGL on its Centrepay usage, which should have flagged the issue of former customers still being charged.
AGL's defence claimed that it had no control over stopping the deductions, which were managed by Services Australia, and that it had informed some customers to cancel their Centrepay deductions upon leaving AGL.
Despite these claims, the overpayments remained as credits on the accounts of former customers, diverting funds from the intended recipients' bank accounts.
In one case, about $4,111 was taken from a person's welfare payments nearly four years after they stopped being an AGL customer.
All the money has since been refunded, and AGL has stated that it acted promptly upon discovering the overpayments, reaching out to Services Australia to cancel the deductions and facilitate refunds.
‘Since becoming aware of the issue, AGL has engaged with Services Australia on a remediation program aimed at improving its processes,’ a spokesperson for the AGL said.
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