State Ombudsman finds Coober Pedy Council was ‘unjust and wrong’ when dealing with water and power customers

SA’s Ombudsman has slammed a regional council over an electricity scheme that inflicted onerous debts and illegal disconnections on vulnerable residents.

Coober Pedy’s Aboriginal community members were allowed to accumulate huge debts – some totalling more than $15,000 – for electricity and water and felt pressured to sign up to onerous payment plans, the State Ombudsman has heard.

Ombudsman Wayne Lines investigated concerns about how Coober Pedy Council managed its water and electricity service billing, releasing his findings on Monday.

The Aboriginal Legal Rights Movement and community members said people felt pressured to enter payment plans that left them with little money for day-to-day living, or face having their water or power cut off.

Locals worked up large debts without understanding how they accumulated.

The Ombudsman’s office said there were at least six people with debts of between $9000 and $15,500. Mr Lines found the council appeared to have broken the law by disconnecting numerous community members’ power after they didn’t pay bills, without first offering instalment plans.

Mr Lines said the council acted in a way that was “unreasonable, unjust and wrong” by failing to identify people eligible for hardship discussions, requiring “significant” payments under hardship agreements, including third parties such as family members in those agreements and not providing people with energy saving tips.

He said allowing people to rack up “considerable debts” over several years had a significant impact on their quality of life.

South Australian Ombudsman Wayne Lines. Picture: Tait Schmaal

“In seeking to recover the amounts owed, the council has created hardship agreements that require oppressively high payments to be made by community members,” he said.

Mr Lines said he was “troubled” that many people “felt pressured” to seek native title payments to contribute towards their debts.

“I make it abundantly clear that I do not consider it is appropriate for a council to in any way suggest that a ratepayer 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,” he said.

He said many of the alleged actions happened under a previous council administration.

Coober Pedy Council chief executive Dean Miller said the Aboriginal Legal Rights Movement’s original complaint was made in 2018.

The Ombudsman’s findings were a “sad indictment on the council” but it was implementing improvements, he said.

These included emphasising financial assistance available and offering for staff to visit homes and advise on electricity-saving measures.

The council is also about to implement a voluntary “electricity smart meter” scheme allowing people to pre-pay for power and monitor their usage. Staff will also undergo cultural awareness training and a meeting with local services is planned to discuss support available for people experiencing hardship.

Mr Miller said many Aboriginal community members felt embarrased asking for help and the council needed to find ways to “better engage” with them.

Mr Lines heard a claim from one man who said he was told he should “go out and live in the bush and that he did not deserve to have a home with electricity”.

His power was shut off on a day in January 2018 when the temperature reached 42C.

Other people reported payment plans being so onerous they had little money left to pay for food or other expenses.

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