Australian Energy Retailer Faces Penalties Over Long-Running Failures

Key Takeaways

• Alinta Penalty: Alinta has paid $718,740 ($1,089,000 AUD) in penalties after the Australian Energy Regulator issued a record 15 infringement notices over alleged mishandling of Centrepay deductions.
• Customer Overcharges: Electricity and gas customers across New South Wales, Queensland and South Australia were overcharged between April 2019 and September 2024, with individual overcharges ranging from about $66 to $6,435 (over $100 AUD to nearly $9,750 AUD).
• Consumer Protection Breaches: The AER alleges Alinta continued to receive Centrepay payments from former customers and failed to notify and refund overcharged customers within 10 business days, as required under the National Energy Retail Rules.
• Wider Enforcement Context: The action follows a separate $16.5 million ($25 million AUD) Federal Court penalty against AGL over similar Centrepay overcharging issues, which AGL is currently appealing, and comes as the AER investigates other retailers referred by Services Australia.

Deep Dive

Alinta Energy has paid $718,740 ($1,089,000 AUD) in penalties after the Australian Energy Regulator (AER) issued a record 15 infringement notices over alleged mishandling of Centrepay deductions and failures to refund and notify customers within the required timeframe.

According to the AER, Alinta continued to receive Centrepay deductions from customers who were no longer receiving energy services from the company, in some cases after all outstanding amounts had already been settled. The overcharged amounts, drawn directly from customers’ Centrelink welfare payments through the Centrepay platform, affected electricity and gas customers across New South Wales, Queensland and South Australia between April 2019 and September 2024. Individual overcharges ranged from about $66 to $6,435 (over $100 AUD to nearly $9,750 AUD).

The AER said the alleged breaches related to Alinta’s failure to comply with several requirements under the National Energy Retail Rules, including obligations to notify customers of overcharges of $50 or more within 10 business days and to use its best endeavours to issue refunds within the same period. These requirements apply even when a customer has moved to another retailer.

AER Deputy Chair Justin Oliver said the regulator was troubled by how long the alleged issues went undetected and the impact on customers who may already have been experiencing vulnerability.

“It’s highly concerning that the alleged breaches went undetected for so long and impacted Australians using the Centrepay service across multiple states,” Oliver said. “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.”

After becoming aware of the issue, Alinta conducted its own investigation in consultation with Services Australia and began contacting and refunding affected customers from January 2023. The company has since implemented measures to prevent its systems from receiving excess Centrepay credits on closed or inactive accounts.

Oliver said the action underscores the responsibility of energy retailers to provide full protections for all consumers, particularly those experiencing vulnerability, under the National Energy Customer Framework.

The infringement notices follow a separate $16.5 million ($25 million AUD) penalty issued by the Federal Court against AGL for failing to comply with overcharging obligations related to Centrepay deductions. AGL has appealed the ruling, with a hearing scheduled for 27–28 November 2025. The AER also confirmed it is investigating several other energy retailers referred by Services Australia in May 2024 for similar conduct.

Under the Retail Rules, retailers must notify customers of overcharges within 10 business days of identifying them and issue refunds within the same period. The AER noted that paying an infringement notice does not constitute an admission of liability.

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