WA Energy Retailer Synergy’s $40 MILLION Billing Bungle: Thousands of Customers Ripped Off for Non-Existent Bills – But That’s Not the Worst of It…
- Synergy’s shocking $40 million overcharging scandal affects almost 175,000 customers, with some hit with tens of thousands of dollars in fake bills.
- State-owned energy retailer’s CEO Kurt Baker admits to ‘serious governance failures’ and promises refunds – but it may take months.
- Economic watchdog flags other energy companies may be guilty of similar overcharging, with review underway to root out ‘endemic problem’.
In a stunning admission, WA’s largest energy retailer Synergy has confessed to ripping off its customers to the tune of $40 million in a shocking billing bungle. The state-owned company’s CEO Kurt Baker has apologised for the ‘serious governance failures’ that led to the scandal, which affects almost 175,000 customers.
But that’s not the worst of it. According to the Economic Regulation Authority of WA (ERAWA), other energy companies may be guilty of similar overcharging, with a review currently underway to root out the ‘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.
So how did this happen? In many cases, Synergy allowed customers to continue paying into closed accounts, even when no bills were being issued. Customers were debited for accounts that had already been shut down, with some receiving fake bills ranging from less than a dollar to tens of thousands of dollars. Almost 13,000 accounts accrued more than $500 in overcharges, while 467 accounts racked up credits of over $5,000.
‘To be frank, it’s a very, very serious lapse in Synergy governance,’ said Mr Edwell. ‘We think there’s been a very serious deficiency.’ Mr Baker promised that Synergy would contact all affected customers and issue cash refunds or credits for future bills, but admitted that the process could take several months.
‘On behalf of Synergy, I’d like to say I’m sincerely sorry for the impact that we’ve had on our customers,’ Mr Baker said. ‘We’ve done our own internal reviews, we’ve got the state government’s independent review, we’ll be taking our findings, the state government’s findings, to improve our systems.’
But for some customers, the damage has already been done. ‘It’s a kick in the guts,’ said one affected customer, who wished to remain anonymous. ‘I’ve been paying my bills on time, and then I find out I’ve been overcharged by thousands of dollars. It’s just not right.’
As the fallout continues, ERAWA is urging other energy retailers to come clean about their own billing practices. ‘We want to get to the bottom of this,’ said Mr Edwell. ‘We want to make sure that all energy retailers are treating their customers fairly.’