Billing Error and Resolution
Bill Nedeff, an 85-year-old former customer of energy provider ENGIE, initially received a letter in June 2025 stating he had been overcharged $10,763. Nedeff had ceased services with ENGIE three months prior due to increasing bills.
Following this, subsequent communications from ENGIE indicated a reduction in the initial credit. By August, Mr. Nedeff was informed that the credit had become a debt, with ENGIE claiming he owed $1,120. A debt collection agency subsequently contacted Mr. Nedeff regarding this alleged amount.
Mr. Nedeff and his daughter, Fiona Han, referred the matter to the South Australian Energy and Water Ombudsman. By November 17, the alleged debt had been reduced to $280. Ms. Han continued to seek further clarification from ENGIE regarding the billing discrepancies.
On December 9, ENGIE confirmed that Mr. Nedeff did not owe money and had in fact been overcharged by $2,470.
Company Explanation and Past Issues
In a statement, ENGIE attributed the incident to manual data entry errors made by an agent during the adjustment of Mr. Nedeff's account. The company stated this also affected one other customer and apologized for the confusion caused.
Ms. Han further noted that analysis of her father's past bills indicated that ENGIE had increased his electricity rates by over 70% in 2022, with peak rates rising from 43c per kilowatt-hour (kWh) in June 2022 to 75c per kWh in July 2022, and reaching 83c per kWh by 2024/25 before his departure from the retailer.
This incident follows previous issues for ENGIE. In August of the preceding year, ENGIE adjusted the bills of approximately 3,000 customers in South Australia due to acknowledged overcharging. In late November, the company was fined $1.2 million by the Essential Services Commission in Victoria for failing to respond to customer complaints in a timely manner. ENGIE has acknowledged not meeting customer expectations "for a period of time last year" and stated it has implemented changes to staffing, training, and customer processes.
Industry Commentary and Regulatory Proposals
South Australian Energy Minister Tom Koutsantonis commented on the case, stating that such incidents can reduce public confidence in the electricity market.
Professor Ron Ben-David, former chair of the Essential Service Commission in Victoria, described a "loyalty tax" phenomenon where energy companies may gradually increase prices for long-term customers. He suggested the current "buyer beware" model of the electricity retail market is not effective for consumers. The ACCC Electricity Inquiry Report from 2025 found that 73.3% of Australian households were not utilizing the best available deals.
Professor Ben-David advocated for a "consumer duty" or "best interest obligation" that would legally require energy companies to act in the best interests of their customers, rather than solely prioritizing profit in contract recommendations.
Ms. Han suggested a need for stronger regulatory frameworks to protect vulnerable consumers.