Aboriginal people in one of Australia’s most remote councils were forced to live without power, make backyard campfires and told to “get used to being in the dark” due to accumulated electricity and water debts, a report has found. 

Key points:

  • The SA Ombudsman investigated the council after a complaint by the Aboriginal Legal Rights Movement
  • He found the council’s management of utility debts for Aboriginal people was contrary to law
  • The council cut electricity to many Aboriginal customers

South Australia’s Ombudsman Wayne Lines investigated Coober Pedy Council’s management of utility bills for Aboriginal people after a complaint from the Aboriginal Legal Rights Movement on behalf of a number of residents. 

Mr Lines found the Coober Pedy Council’s overall management of electricity and water debts for members of its Aboriginal community was “unreasonable”, “unjust”, “wrong” and “contrary to law”. 

He found debt collection processes made residents feel pressured to use native title money to pay outstanding bills to the local council — a practice that he said effectively “propped up” the council’s utility debts.

The ombudsman’s report stated the council had cut electricity to numerous Aboriginal customers because of outstanding bills accumulated over several years without offering a repayment plan, and did not identify customers who were eligible for hardship support. 

Some customers were charged for non-existing debts and died while they were thousands of dollars in credit, while others were not provided a translator to assist them in negotiating their debts with council.

In 2019, the council was placed into administration after a different report detailing serious maladministration over a $200 million power deal.

The issues raised in the report occurred under the former council.

While the current council has accepted the report’s recommendations, ongoing issues remain over the supply of water and power in the town.

Power cut on 42C day

Mr Lines spoke to several Aboriginal customers as part of his investigation, while council documentation was also sought and analysed.

A traditional Yankunytjatjara man told the investigation he was not offered an interpreter when discussing $12,000 of debt he had racked up with the council. 

His electricity was cut off in early January 2018 on a day when the temperature reached 42 degrees Celsius.

SA Ombudsman Wayne Lines conducted an investigation.(

ABC News: Isabel Dayman

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The ombudsman was told the man had regularly had his power cut and had “been unable to keep food in the house so instead he goes ‘out bush'”. 

The report found that the man “felt bullied and pressured into signing documents where he did not have time to read and understand them”. 

The Coober Pedy water treatment plant.(

ABC North and West SA: Luke Radford

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Locals reported feeling “pressured by the council to seek emergency payments from a Native Title trust fund” to pay off electricity and water debts.

The ombudsman said he did not consider it appropriate for a council “to in any way suggest that a rate payer should seek financial assistance from a Native Title body as a means to managing a council debt or to have a necessary resource, such as a connection to electricity or water, reconnected”.

The council’s chief executive Dean Miller told Mr Lines that the council “has never had any formal or informal policy or practice about advising or requesting members to make a claim for Native Title payments”.

The council said it had updated its policy to ensure hardship agreements no longer include the option to use native title money to repay debts.

‘Get used to being in the dark’

Mr Lines said the council had failed to properly inform customers about the impact of repayments made under financial hardship agreements.

One woman who lived on $60 per fortnight, after her bills and rent, said she had felt pressured to enter into a hardship agreement in which she paid $200 per fortnight to “cover her electricity consumption” as well as $126 per fortnight to reduce the amount she owed.

Another resident said she felt very distressed when a council official told a young family member that they “would need to get used to being in the dark if she would not sign an agreement” to pay $450 per fortnight.

“Shortly after this exchange [the woman] went to Adelaide to have dental treatment for [a family member] and returned to find the power switched off and, amongst other things, rotting meat in her refrigerator,” the report noted.  

Coober Pedy Council is facing mounting debts topping $10 million with difficulties recouping outstanding bills from people who cannot afford to repay them.(

Audience submitted: Helen Vercoe

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While some customers were financially stressed paying off debts, others were signed up to unnecessary repayments.

Mr Lines noted one woman had been making payments of $200 each fortnight for electricity before the council advised that the electricity account had always been in credit.

Mr Lines ultimately found the council had acted in a way that appeared “contrary to law” because it had breached the conditions of the electricity and water retail and distribution licence by:

  • Disconnecting customers for non-payment without offering an instalment plan
  • Disconnecting customers on a Friday, leaving them without power over the weekend
  • Omitting key information from its utility bills
  • Failing to comply with hardship policy for water customers
  • Failing to report its non-compliance with the electricity and water retail licence to the Essential Services Commission of SA

He also found the council was unreasonable, unjust and wrong by failing to identify customers who were eligible to enter hardship discussions, require significant payments from those under repayment plans, including third parties in repayment plans and failing to provide consumers with energy saving advice.

The council remains in administration, with its chief executive telling the ombudsman that it was “on its knees financially with $10 million in debt … partly caused by a lack of debt recovery over many years”.

“Electricity arrears have averaged $915,000 over the last 6 years. This has cost ratepayers about $200,000 in lost interest alone over that period,” Mr Miller said.

The State Government is working with the council to address its challenges. (

Pixabay: Albrecht Fietz

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He said the organisation had made several steps forward in finance and governance in recent years, including updating its hardship policies.

Mr Lines acknowledged the council’s difficult financial position before making several recommendations, including that council review all hardship agreements signed up to since 2014, and consider waiving “part or all of” residents’ electricity and water debts.

He also recommended that the SA government review alternative options for electricity and water supply that would be less of a burden on the council.