Alinta has paid $1.089 million in penalties following a record 15 infringement notices issued by the Australian Energy Regulator (AER) after overcharging Centrepay customers and then allegedly failing to refund and inform them about overcharges within the required timeframe.
The overcharged amounts were received by Alinta from customers’ welfare payments through the Centrepay platform—a government bill paying service where people use their Centrelink payments to make regular payments for essential goods and services.
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The alleged conduct affected electricity and gas customers across New South Wales, Queensland and South Australia between April 2019 and September 2024, with total overcharged amounts for each customer ranging from over $100 to nearly $9,750.
This outcome follows an AER investigation, prompted by a referral from Services Australia, in which the AER alleged that Alinta breached the National Energy Retail Rules by continuing to receive Centrepay deductions from customers who were no longer receiving energy services from Alinta and had already paid any outstanding amounts.
AER deputy chair Justin Oliver said the AER was concerned by the number of alleged breaches and their potential impact on consumers.
“It’s highly concerning that the alleged breaches went undetected for so long and impacted Australians using the Centrepay service across multiple states.
“While Alinta has taken action to refund affected customers, the size of this penalty reflects the serious nature of the alleged conduct and its impact on consumers that may have already been experiencing vulnerability,” Oliver said.
After becoming aware of the alleged conduct, Alinta undertook an investigation in consultation with Services Australia and began contacting and refunding impacted customers from January 2023.
It has since implemented a series of measures to prevent its systems from receiving excess Centrepay credits on closed and inactive accounts.
“It’s an important reminder to energy retailers of their responsibility to ensure all consumers, and especially those experiencing vulnerability, receive the full protection of the rules and laws they’re entitled to under the National Energy Customer Framework,” Oliver said.
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The payment of infringement notices by Alinta follows a $25 million Federal Court penalty issued to AGL for failing to comply with overcharging obligations related to Centrepay payments. AGL has appealed the decision to the Full Federal Court, with the appeal to be heard on 27-28 November 2025.
The AER is currently investigating other energy retailers which were referred to it by Services Australia in May 2024 for similar conduct.
