An independent review of Synergy will put the state-owned gas and electricity provider’s retail billing practices and complaints management systems under a microscope.
An independent review of Synergy will put the state-owned gas and electricity provider’s retail billing practices and complaints management systems under a microscope.
Energy sector specialist Cara Graham has been selected by the state government to led the independent review after the utility breached its electricity retail licence.
Brisbane-based Ms Graham is a power and utilities, strategy and transactions partner at big four firm EY, and was previously at electricity distributor Energex.
Last week it was revealed Synergy failed to cancel auto-debiting customer payments on closed accounts resulting in 2,845 people being overcharged $2.29 million dating back to 2009.
Energy Minister Amber-Jade Sanderson today outlined the scope of the review would assess “Synergy's retail billing practices to identify any systemic issues that may have a detrimental impact on its customers and the public's confidence in Synergy's performance”.
The review will also look at Synergy’s governance matters and strategic oversight arrangements that enforce legal and ethical standards and the appropriateness of its current refund and restitution policies where a detrimental customer impact has been identified, according to the state government.
Ms Sanderson said she instigated the independent review to ensure the integrity of Synergy's billing system.
"Customers should have confidence that Synergy's billing procedures are robust and operating efficiently,” she said.
"Synergy has said they will assist the independent reviewers in any way possible.
“It is important that the reviewers are now left to execute their duties in line with the terms of reference."
A Synergy spokesperson said they welcomed the independent review and would actively assist the review team.
Of those overcharged, 459 were using Centrepay - a voluntary bill paying service used by some Centrelink customers – and overseen by Services Australia.
Last week the ERA said Synergy’s actions would have likely had a material impact on some of the welfare recipient customers who may be vulnerable and experiencing financial disadvantage.
Synergy chief Kurt Baker said the energy provider sincerely apologised to customers affected by the issue, commenting on the issue last week. He also acknowledged that vulnerable customers were let down in this instance.
Synergy has contacted the affected customers for refunds and cancelled Centrepay payments going to closed accounts since April, the Economic Regulation Authority said.
The utility is now expected to swiftly rectify the overcharges, with about half of the refunds being $250 or less per customer.
