Thousands of Australians are set to receive a huge payout after one of the country’s biggest energy retailers was accused of misleading customers about the cost of its plans.
Origin Energy will refund $270,000 to more than 4,500 customers after a consumer watchdog reviewed claims that the company may have misrepresented some of its pricing options.
Origin will be forced to refund money to more than 4,500 customers. Chris Hopkins
Each customer is expected to receive about $60.
The Australian Competition and Consumer Commission (ACCC) launched an investigation following a complaint from consumer advocacy group CHOICE.
The group accused Origin of telling customers that its Lifetime Savings plan was cheaper in the long run than its Basic plan.
However, CHOICE claims that some customers were actually charged more for the Economy plan than for the Basic plan.
Origin did not admit to breaching Australian consumer law but decided to offer redress during the ACCC investigation.
Commissioner Anna Breakey said retailers must ensure promised savings are actually passed on to customers.
“Electricity retailers that claim or offer savings to consumers on their plans, including on behalf of the plan, must ensure that the savings are actually delivered to customers over the life of the plan,” she said.
“Energy plans are complex, and the combination of usage and supply charges makes it difficult for many consumers to estimate potential savings.
“Retailers must provide clear and accurate information about their plans to help consumers make informed decisions.”
The ACCC said it would take no further action after Origin offered a refund and complied with the investigation.
Current customers will be given the opportunity to request a refund or automatic credit, and former customers will be contacted directly by the company to discuss compensation.
Origin said only 0.5 percent of its customers were affected by the “bug.”
“(These customers) paid an average of $28 more than they should have,” an Origin spokesperson told nine.com.au.
“We have since made improvements and are now returning an average of about $60 to these customers.”
The company was also sued by Australia’s energy regulator for allegedly overcharging customers by millions of dollars.
The Australian Energy Regulator (AER) claims thousands of customers continued to be charged for using their Centrepay accounts after they were closed, despite paying off the full amount owed.
It is alleged that 77,000 such violations occurred between December 2019 and March 2025, with one customer allegedly overcharged by $11,000 over two years.
Centrepay is the government’s bill payment service where people use Centrelink payments to make regular payments for goods and services.