The Australian Energy Regulator (AER) has instituted proceedings in the Federal Court against four Origin Energy subsidiaries (collectively, Origin) for alleged breaches of the National Energy Retail Rules (Retail Rules) and the National Energy Retail Law (Retail Law).
The proceedings relate to Origin allegedly continuing to receive payments from Centrepay customers who had closed their accounts with Origin and had fully paid all amounts they owed.
It is alleged that Origin failed to inform these customers about these overcharged payments or refund them within the timeframe required by the Retail Rules. The AER alleges that Origin knew that its systems were processing payments in this way as early as 2017 and put on hold a previously approved process that could have prevented further payments from occurring.
Centrepay is a government bill paying service where people use their Centrelink payments to make regular payments for essential goods and services.
Between December 2019 and March 2025, Origin’s alleged conduct affected more than 3,400 electricity and gas customers. It’s alleged this conduct resulted in more than 77,000 breaches and Origin retaining more than $2.5 million from affected customers. This included one customer who was allegedly overcharged by more than $11,000 over a period of almost 2 years.
The AER also alleges that Origin breached the Retail Law by failing to establish policies, systems and procedures to monitor compliance with the Retail Rules.
AER Chair Ms Clare Savage said the scale and duration of the alleged conduct was particularly concerning.
“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,” said Ms Savage.
The AER is seeking orders for pecuniary penalties, declarations, customer remediation, a compliance program and an independent review of such a program, and costs.
Today’s filing of court proceedings follows an AER investigation prompted by a referral from Services Australia.
A separate AER investigation from the same referral resulted in Alinta Energy Retail Sales Pty Ltd last month paying $1,089,000 in penalties for similar alleged conduct.
In December 2024, the Federal Court imposed a $25 million penalty on AGL for failing to comply with overcharging obligations related to Centrepay payments. AGL appealed the decision to the Full Federal Court. The appeal was heard in November 2025 and the decision is pending.
Notes to Editors
Court proceedings
As the matter is now before the Court, the AER will not be making any further comment, and no further documents will be made available by the AER.
National Energy Retail Rules and National Energy Retail Law
The National Energy Retail Rules impose legal obligations on energy retailers in respect of circumstances where a customer has been overcharged.
The National Energy Retail Law imposes legal obligations on regulated entities to establish arrangements to monitor compliance with the National Energy Retail Law and Rules.