Synergy under fire after admitting to taking $40 million from customers

Synergy has come under fire for a second time this year after admitting to taking $40 million from Western Australia customers.

The state-owned utility is blaming a “system failure” for the error as they work to pay back hundreds of thousands of people.

“This isn’t good enough, it’s not acceptable and we’ve let our customers down,” Synergy chief executive Kurt Baker said.

Synergy under fire after admitting to taking $40 million from customers
Synergy has come under fire for a second time this year after admitting to taking $40 million dollars from their Western Australia customers. (9News)

The provider collected overpayments from accounts that were meant to be closed, impacting 174,000 customers – both residential and business.

The payments date back to 2009 for amounts ranging from $1 to tens of thousands of dollars.

“Our systems and our processes should identify that, but they haven’t, so our systems have let us down,” Baker said.

He reassures customers they’ve now been stopped but wouldn’t reveal exactly when Synergy discovered the blunder.

Synergy CEO
Synergy chief executive Kurt Baker reassures customers they’ve now been stopped but wouldn’t reveal exactly when Synergy discovered the blunder. (9News)

“We’ve only concluded that in recent times,” he said.

It’s expected to take several months for customers to be reimbursed but Synergy’s CEO said the company had hired extra staff to speed up the process.

“It’s utterly unacceptable that this situation occurred, and those who have overpaid deserve reimbursement immediately,” declared Reece Whitby, the state minister.

Person using microwave
Person using microwave (9News)

It isn’t the first time Synergy has slipped up.

In March, it was discovered that nearly 3000 vulnerable customers using Centrepay experienced overcharges on closed accounts, with automatic deductions amounting to a total of $2.29 million.

“This is a matter of trust. The people of Western Australia must be confident that their government departments are acting in their best interest, and in this instance, that trust has been compromised,” stated opposition energy minister Steve Thomas.

You May Also Like

Scotland lock Scott Cummings rises highest to win the ball in a line-out

Scotland 21-43 New Zealand: All Blacks claim emphatic Murrayfield win

Any suggestion that Scotland were closing the gap on the All Blacks…
Sales and foot traffic at David Jones have hit record levels as Aussies flock to the retailer following its collapse into voluntary administration and receivership

Australian Retailer David Jones Sets Sales Record Amid Administration

David Jones has recorded its strongest-ever sales and foot traffic, according to…
New Zealand look menacing as they perform a pre-match Haka before setting about Scotland

Scotland’s Near-Perfect All Blacks Record Marred by Two Draws

The hope was that Scotland might finally make history. Instead, the afternoon…