Power Struggles: The Crisis of Prepaid Energy in First Nations Communities

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Power Struggles: The Crisis of Prepaid Energy in First Nations Communities

In the remote Djarindjin community, Bernadette Angus checks her electricity meter every morning, a ritual that underscores the harsh realities of life under a prepaid power system. This community, like many others across Australia, grapples with the challenges of energy insecurity, particularly during extreme weather conditions. Our recent report “The Right to Power” drew attention to the struggle of these roughly 65,000 First Nations people. This report, entirely written by Original Power and the First Nations Clean Energy Network, dives deeply into their struggles with mandatory prepayment systems.

The report exposes shocking numbers, projecting 440,000 disconnections affecting 8,800 households within the last year alone. Residents such as Audrey Shadforth frequently must make hard decisions in the blistering summer heat. They shouldn’t have to choose between running their air conditioning or keeping their food freezers cold. The consequences of these decisions fall hardest on the families that have to figure out how to make all of their constrained resources go as far as possible.

Angus reports that her daily cost of power is less than $20. When it gets hot, that expense can increase to at least double or even triple. On days when she can’t find cooling, she and her family sometimes pack into one cooled room. They close these heavy curtains to create a refuge from the scorching heat that absorbs their village. “It breaks my heart,” Angus reflects. He shares along with us the anxiety that is produced by the unending struggle with escalating energy expenses.

Power outages became the norm in Djarindjin creating a cycle of distress and insecurity for its residents. Her Shadforth shares the reality of that frustration, “For example, today I ran out of power. The urgency is felt through the page as she recounts having to stock up on supplies in advance of coming disconnections. One last caveat and then we’ll be speeding, she adds. Through Koltiska’s lens, Lily shows us the precariousness of life when we’re under a prepaid energy system.

As Lloyd Pigram from Original Power reminds us, this is a conjoined systemic problem. It’s a clear system that shifts the burden of risk back down to the person,” he says. For many families, the reality is stark: “If you run out of money, the power’s cut instantly — there’s no safety net.” This absence of support has made an already dire situation even worse, particularly for vulnerable and disadvantaged communities.

The report outlines six key reforms aimed at addressing these pressing issues, including a proposed ban on disconnections during extreme heat. It also calls for the temporary energy relief payments to be extended and for retailers to be incentivised to establish fairer tariffs. Electricity rates for prepaid customers now vary from 11 to 34 cents per kilowatt-hour. This broad spectrum further compounds the economic hardship felt by families such as Angus and Shadforth.

Audrey Shadforth articulates the emotional toll these circumstances take: “Oh, all depressed, you know.” The challenge isn’t just economic—it’s a blow to mental health too. She continues, “Because if you’ve got a baby in your home, you need to be concerned about her. And it is very hard.” Yet this sentiment reverberates across Djarindjin as families are faced every single day with dwindling resources and ever-increasing expectations.

Further, the report estimates that keeping these households connected during extreme heat has cost an average of $1.57 million per year. This figure vividly demonstrates just how crucial it is to put these solutions to work to achieve energy equity for First Nations communities. The evidence leaves no doubt—it’s time to act. It’s more important than ever to lower the number of disconnections and make certain that all people can access positive energy services.

The Original Power research team has been instrumental in crafting this groundbreaking report. No doubt, Thomas Longden, Lauren Mellor, Lloyd Pigram and Kathryn Thorburn have toiled endlessly to put the spotlight on these issues. Their advocacy has helped shine a light on the need for change to energy policies that impact First Nations communities.

A spokesperson for Horizon Power addressed the key findings in “The Right to Power.” They acknowledged the report’s intent and expressed wide support for it, but highlighted that, as a Government Trading Enterprise, they are unable to speak on policy issues.

As the debate over energy equity intensifies, Bernadette Angus and Audrey Shadforth shed light on the human toll of energy disconnections. As these students explain, reform is desperately needed in this area. Angus reflects on her daily challenges: “When my kids go to school, I have to look around for power just to cook a feed.” Her story outlines the personal fight to achieve a solution that so many others like her have lived in rural and regional Australia.

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