Origin Energy, a giant in the gas and electricity business is hitting customers with a new charge for paying their bills – a credit and debit card “service fee.”

According to Origin Energy they can no longer afford to absorb the annual costs which amount to several millions of dollars. However, Origin made a $530 million profit last year. Their after-tax profit increased 20 per cent last year.

This new charge will affect about 200,000 Victorian customers on market contracts, who are using Visa or Mastercard, unless they change their payment method.

Scott Hargreaves, a spokesman for Origin said the business was no longer able to absorb processing fees levied by financial institutions when customers pay by credit cards. The surcharge is 0.6 per cent, or $1.80 on a $300 energy bill.

Origin sent letters to customers who pay by direct debit and advised them of the change. Those paying by phone received a recorded message alert.

Origin Energy’s key rival, TRUenergy does not have a credit card surcharge. AGL, Victoria’s other major energy retailer has a one per cent on Mastercard or Visa payment fee for customers who signed gas or electricity market offers after March 15, 2006.

Mr. Hargreaves said similar surcharges are common in industries such as airlines and telcos. He said, “It is about cost recovery. Up until now, some customers have been benefitting.”

This new charge comes at a time when households and businesses are preparing for big price increases due to climate change policies and penalties for polluters.

Joseph Dingli, a very angry Origin customer said the fee is robbery. “Charging a fee for the privilege of paying a bill for an essential service sucks,” he said. “Someone is being greedy.”

The fee can be avoided by paying through BPay, Australia Post, or debit from a cheque or savings account.