Regulator takes Origin Energy to court for allegedly overcharging Centrelink recipients
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The news: The Australian Energy Regulator (AER) has taken Origin Energy to court, alleging the company continued to charge Centrelink recipients who had closed their accounts and fully paid their bills.
The AER alleges four Origin subsidiaries breached the National Energy Retail Rules and Law by failing to inform customers it was charging them, or refund them in the required timeframe.
The regulator claims Origin knew the system was processing payments in this way as early as 2017 and had put on hold a process that would have prevented these payments from continuing to occur.
It claims 3,400 electricity and gas customers were affected between December 2019 and March 2025 using Centrepay, a government bill paying services for people on Centrelink payments.
During that period, the AER alleges there were 77,000 breaches, claiming more than $2.5 million, and as much as $11,000 from at least one customer.
What they said: In a statement, AER chair Clare Savage said the regulator was concerned by the scale and duration of the alleged breaches.
“Many customers affected by this alleged conduct were likely experiencing economic vulnerability and could have otherwise used the money they were overcharged to spend on essentials,” Savage said.
The context: The court proceedings followed a referral from Services Australia, which resulted in a separate investigation and a subsequent $1 million penalty against Alinta Energy for similar alleged conduct.
Last December the federal court ordered AGL to pay a $25 million penalty for failing its Centrepay obligations. AGL appealed that verdict in November and a final decision remains pending.
The source: AER
