Origin Energy sued by AER for $2.5m in Centrepay overcharges affecting thousands

Origin Energy is facing legal action in the Federal Court after Australia’s energy watchdog accused the company of overcharging thousands of customers by $2.5m.

The Australian Energy Regulator (AER) alleges that between December 2019 and March 2025 more than 3400 customers were charged for using their Centrepay accounts even after closing them despite having fully paid their bills.

The regulator claims these issues led to about 77,000 separate breaches, with one customer reportedly overcharged $11,000 over two years.

Centrepay, a government bill-paying service, allows people to use Centrelink payments for regular expenses such as energy bills.

According to the AER, Origin was aware of problems with the payment system but delayed implementing a process that could have prevented additional charges.

The legal action targets four subsidiaries of Origin Energy, alleging breaches of the National Energy Retail Rules and the National Energy Retail Law.

AER chair Claire Savage said the alleged conduct was particularly concerning because many customers were facing financial hardship at the time.

“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,” she said.

Centrepay allows approved businesses early access to welfare payments before they reach a welfare recipient’s bank account, ensuring individuals always have enough for essentials, including rent and energy.

Origin Energy has expressed regret over the overcharges.

“(We) apologise to all those affected. We self-reported Centrepay overpayments directly to Services Australia in 2021, have worked closely with them to return outstanding funds to those affected, and have made extensive improvements to our processes and systems to better manage Centrepay deductions.,” a spokesperson said.

The Federal Court proceedings will determine whether Origin Energy must compensate affected customers and face penalties under the national energy laws.