People without power

Dear Editor,

I write with concern about the plight of the thousands of Territorians who rely on prepaid electricity to keep their lights on each day – along with their air conditioners (especially in the searing heat of Central Australia), fridges as well as to keep other critical appliances and devices running.

In the 2022/23 financial year, there were just under 104,000 (largely involuntary) self-disconnections across 2430 households in regional areas of the NT with prepaid electricity meters, with an average duration of around six hours without electricity.

These figures do not include the thousands of other households in remote areas using pre-paid electricity, where disconnections would be occurring at a similar rate.

Prepaid electricity is clearly unaffordable for so many of the households who use it.

This Christmas, as you pass by the bright lights and decorations in the neighbourhoods around you, spare a thought for those households who may have the lights go out this week – maybe once, maybe twice or even more.

I implore the Northern Territory Government to take urgent action to help rectify this situation. While rolling out solar across public and social housing is required in the medium term, there are immediate things that can be done.

One of the factors contributing to the high rate of self-disconnections is that households using prepaid meters are charged a higher kilowatt/per hour rate (32.11c) than people on post payment meters (29.21c), arguably based on the fact that they are not billed for a fixed daily rate charge.

In reality, once a prepayment household’s daily consumption goes above around 20 kWh, they pay a larger dollar amount than post payment households – yet prepayment households are some of the lowest income households in the NT.

The NT Government could help fix this now, by charging the same kW/h tariff rate for all households in the NT – which would immediately increase affordability and decrease the rate of disconnections.

Secondly, people on the lowest incomes (Jobseeker ($786 a fortnight) and Youth Allowance ($646 fortnight) are not eligible for the NT Concession scheme which provides concessions on electricity ($1200 a year for people on prepayment meters) but a someone on a part time wage can earn up to $2501 per fortnight and still qualify for a part pension payment – and therefore is eligible to receive an electricity concession.

The NT Government can fix this now, by expanding the NT Concession Scheme to people on the lowest income support payments such as Job Seeker and Youth Allowance.

The crisis of prepaid electricity requires an immediate response.

Jonathan Pilbrow, Alice Springs