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Forced to choose between eating or heating: Inside the shocking energy trap leaving pensioners in the cold

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Forced to choose between eating or heating: Inside the shocking energy trap leaving pensioners in the cold

  • Maan
  • By Maan
1756690391529.png Forced to choose between eating or heating: Inside the shocking energy trap leaving pensioners in the cold
Alice Springs residents pay high price for warmth. Image source: Pexels/Pratik Adarsh | Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.

The desert nights in Alice Springs could freeze through walls thinner than blankets, leaving families to shiver with every passing hour.


For some, the simple act of turning on a heater had become a calculation between hunger and comfort.


In the Northern Territory, warmth itself had quietly become a luxury few could afford.




Grandmother Alfreda Dunn knew this truth better than most.


She lived in a public housing home with six family members, including her grandson, and each night she watched the prepaid electricity metre tick down faster than she could top it up.


Her household spent about $560 every month on power—more than what many pensioners received in rent assistance—forcing them into an impossible choice between staying warm and putting food on the table.




'Our power goes off and we feel cold in the night and we get hungry'

Alfreda Dunn, Alice Springs public housing tenant



This was the reality faced by thousands of Territorians in public housing, where every kilowatt carried a price that punished the most vulnerable.



In this article




The Territory’s Energy Paradox



Electricity in the NT was technically among the cheapest in the nation, thanks to enormous government subsidies.


Without the Community Service Obligation (CSO), the average Darwin household would have paid nearly 50 per cent more for electricity, with the NT Government bridging the gap between true generation costs and what consumers paid.


But this protection did not extend equally.


Residential and commercial electricity prices were regulated through a pricing order, yet prepaid systems created a two-tier market that left public housing tenants like Alfreda disadvantaged.


Standard account holders paid lower usage rates but carried daily connection charges, while prepaid customers avoided supply charges but faced higher per-kilowatt costs.


For low-usage households, this arrangement offered some relief.


But for families needing heaters, fridges, washing machines, and cooling in brutal summers, the mathematics of disadvantage ensured they paid more for every unit of comfort.




The Health Cost of Cold Homes



Energy poverty was not just about budgets—it was about health.


Australian research linked energy affordability with serious health outcomes, particularly among older residents.


Inadequate warmth during winter and inadequate cooling in summer increased risks year-round.



Did you know?


Heating and cooling hit hardest Heating and cooling systems can account for around 40% of household energy consumption in Australian homes, making them the largest single contributor to electricity bills for many families.



Among seniors, cold homes contributed to higher rates of cardiovascular issues, respiratory problems, arthritis flare-ups, and even increased mortality.


‘The prevalence of mental and physical health problems, as well as mortality rates, are higher among those living in cold housing,’ one study concluded.


In Alice Springs, winter temperatures could plunge to 1°C overnight, making heating essential rather than optional.


The same households that froze through winter often struggled to afford cooling in summer’s dangerous heatwaves.


Jonathon Pilbrow, a social policy consultant, called for urgent tariff reform, warning that the NT’s extreme climate magnified the stakes of energy poverty.




A National Problem with Local Consequences



While the NT illustrated the problem starkly, energy poverty was not confined to the desert.


Across Australia, retirees dependent on the Age Pension faced the highest prevalence of energy poverty compared to part-pensioners and self-funded retirees.


This reflected deeper structural issues in the nation’s retirement income system.


Government pensions were designed as a safety net but often left recipients exposed when energy costs spiked or extreme weather drove usage higher.


For seniors, already on fixed incomes, the impact could be devastating.




NT Energy Concession Entitlements


If you hold a Northern Territory Concession Card (available to Age Pension or Disability Pension recipients), you may be eligible for up to $1,200 per year in electricity concessions through the NT Concession Scheme.


However, those receiving JobSeeker payments or Youth Allowance are excluded from this support, despite often having lower incomes than pensioners.




The NT’s geographical isolation compounded the problem.


With only a small market and limited competition, residents had few options to shop around for better electricity deals.




Making Every Kilowatt Count



For families on the brink, every adjustment mattered.


Heating and cooling accounted for about 40 per cent of household energy use, making them the first targets for efficiency savings.


Simple strategies included thermostat adjustments, sealing gaps, replacing inefficient appliances, timing usage during off-peak periods, and adding curtains or blinds.


Using fans to circulate air and considering solar hot water also helped households stretch limited credit.


But efficiency alone could not solve the inequities of the system.



Support That Missed the Mark



The NT Concession Scheme offered up to $1,200 per year, but barriers remained.


Accessing the support required paperwork that many found difficult to supply.


Awareness of programs was inconsistent, meaning eligible residents sometimes went without help.



If you're an Age Pensioner or Disability Support Pensioner in the NT, you should be receiving significant help with electricity costs. Contact Jacana Energy or your electricity provider with your concession card details to ensure you're getting all available discounts. If you're on JobSeeker or Youth Allowance, advocate for policy change by contacting local representatives.



The exclusion of JobSeeker and Youth Allowance recipients created a perverse outcome where the lowest-income households received the least support.


Other states offered broader models of assistance, showing that fairer systems were possible.




Consumer Rights in an Unequal Market



Every year, around 80,000 disconnections took place across the NT.


For prepaid customers, disconnection happened instantly when credit ran out.


There were no hardship programs, payment plans, or protections like those available to post-paid account holders.


Advocates argued that this created unnecessary health and safety risks, particularly for children, elderly residents, and people dependent on powered medical equipment.



The Broader Call for Justice



Jonathon Pilbrow’s call for tariff reform reflected growing recognition that energy policy was fundamentally about social justice.


Affordable energy had already been proven achievable through subsidies.


The CSO alone was estimated to rise to $192 million in 2025–26, up by $51 million from the previous year, showing how much public investment was already committed.


Extending this protection equally to prepaid customers would cost comparatively little but deliver enormous human impact.




Key Takeaways



  • Energy poverty affects health, wellbeing and dignity

  • Elderly Australians face higher health risks from inadequately heated or cooled homes

  • Age Pensioners experience energy poverty at higher rates than other retirees

  • NT's prepaid electricity system creates two-tier pricing that disadvantages vulnerable residents

  • Support exists but access barriers prevent many from receiving help

  • Simple energy efficiency measures can reduce bills significantly




The NT’s energy market revealed a deeper national challenge of inequality in essential services.


While subsidies lowered prices for many, vulnerable households continued to pay more for less.


Alfreda’s story was repeated across thousands of homes, where families juggled impossible choices between food, warmth, and survival.


As another winter approached in Alice Springs, Territorians once again faced the nightly calculation of comfort versus cost.


But with targeted reforms and stronger advocacy, this could be one of the last winters where staying warm was treated as a privilege rather than a right.



What This Means For You


Energy poverty in the Northern Territory had left many vulnerable residents struggling to keep warm, with families like Alfreda Dunn’s paying up to $560 a month just to power their homes. Despite heavy government subsidies keeping tariffs among the lowest in Australia, prepaid systems forced disadvantaged households to pay more per kilowatt.


For seniors, the stakes were especially high, as cold or overheated homes increased risks of illness, worsened arthritis, and even premature death. Concessions of up to $1,200 per year existed but excluded people on JobSeeker or Youth Allowance, leaving many of the lowest-income households without support.


Advocates warned that prepaid customers were treated as ‘second-class citizens’ due to instant disconnections and fewer protections than post-paid users. For readers, particularly seniors, this reality may feel familiar—what changes would make the biggest difference in helping you keep your home safe and comfortable year-round?






Have you experienced energy affordability challenges in your area? We'd love to hear your thoughts on what support would make the biggest difference for seniors facing high electricity costs.

Seniors Discount Club

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Affordability isn't just confined to NT (tho prepaid power/energy possibly is)!

I'm in Vic & have the same choice re per kw cost versus supply cost - energy companies are the only winners here!

I'm on a low income (work casual) but not low enough for concession cards & I have to budget very tightly to be able to keep energy bills down & this has meant the heater has stayed off all winter (same as last winter) & sth west Vic gets pretty cold in winter too, tho not quite as extreme as Alice .

I've been finding warmth in other free alternatives- working as a cleaner helps, but also exercising & walking the dog, extra clothing/coats & bed earlier than "normal"
Food/grocery bills are insanely high (harder to trim the cost now as cant go without food, but have had to budget hard most of my life so have accepted it's just how it is)

Yes the health may suffer as I get older (am 64yo) but won't be able to afford to do anything about that either (have never been able to afford private health insurance & now Medicare is just a scam as nothing is covered by it now days anyway).
I'm doing better than many, but I'm sure there are a lot of us in this same boat here - it's probably only politicians & their CEO cronies & the likes who aren't really struggling these days so nothing will improve!
 
Affordability isn't just confined to NT (tho prepaid power/energy possibly is)!

I'm in Vic & have the same choice re per kw cost versus supply cost - energy companies are the only winners here!

I'm on a low income (work casual) but not low enough for concession cards & I have to budget very tightly to be able to keep energy bills down & this has meant the heater has stayed off all winter (same as last winter) & sth west Vic gets pretty cold in winter too, tho not quite as extreme as Alice .

I've been finding warmth in other free alternatives- working as a cleaner helps, but also exercising & walking the dog, extra clothing/coats & bed earlier than "normal"
Food/grocery bills are insanely high (harder to trim the cost now as cant go without food, but have had to budget hard most of my life so have accepted it's just how it is)

Yes the health may suffer as I get older (am 64yo) but won't be able to afford to do anything about that either (have never been able to afford private health insurance & now Medicare is just a scam as nothing is covered by it now days anyway).
I'm doing better than many, but I'm sure there are a lot of us in this same boat here - it's probably only politicians & their CEO cronies & the likes who aren't really struggling these days so nothing will improve!
I'm in north-west NSW where even today we had a frost. I can no longer carry wood up the stairs & inside to keep a fire going so - no fire. That means all I have is a.c. & that's too expensive to run all day & night. During winter, when I got up I turned the a.c. on until 7 a.m. when the power price spikes, to get the room a bit warmer. Then it's just a case of warm clothes & layers of them to keep warm. I'm 84 years old & really feel the cold now. I don't know how I'll keep warm if we have a really cold winter with lots of big frosts which is normal for this part of the country.
 
The cost of living crisis is hitting right across the board and has for quite some time and is only going to get worse. State and federal governments have no idea how to bring it under control and there is only so much budgeting you can do with limited funds and rising costs. I hate to think where it is actually going to end apart from the rich getting richer and the poor getting poorer.
 
I'm in north-west NSW where even today we had a frost. I can no longer carry wood up the stairs & inside to keep a fire going so - no fire. That means all I have is a.c. & that's too expensive to run all day & night. During winter, when I got up I turned the a.c. on until 7 a.m. when the power price spikes, to get the room a bit warmer. Then it's just a case of warm clothes & layers of them to keep warm. I'm 84 years old & really feel the cold now. I don't know how I'll keep warm if we have a really cold winter with lots of big frosts which is normal for this part of the country.
Have you not got anyone who could bring wood in for you. That's a real shame. I would if I lived near you. Gosh it is an easy thing for a neighbour to do. It's terrible to think people are going cold when there is actually an easy fix!
 
I really don't know what happened to our lucky country
 
I really don't know what happened to our lucky country
The world is what happened to our lucky country. Look at what is happening around the world. Australia is not immune from it.
 
Have you not got anyone who could bring wood in for you. That's a real shame. I would if I lived near you. Gosh it is an easy thing for a neighbour to do. It's terrible to think people are going cold when there is actually an easy fix!
 
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we are on south WA and we live in a retirement village owned by Masonic the houses are old and have no insulation so it is freezing in Winter it js the coldest place we have ever lived and to keep warm we have bills that are very high so we are paying rent for this and struggle to pay for heating
SC
 
One of the essentials for pensioners these days is to have a quality overcoat. We have got used to wrapping up this winter rather than use the aircon which costs a fortune to run. But never mind. Albo couldn't care less about us oldies. Its the young votes he's after.
 
I'm in north-west NSW where even today we had a frost. I can no longer carry wood up the stairs & inside to keep a fire going so - no fire. That means all I have is a.c. & that's too expensive to run all day & night. During winter, when I got up I turned the a.c. on until 7 a.m. when the power price spikes, to get the room a bit warmer. Then it's just a case of warm clothes & layers of them to keep warm. I'm 84 years old & really feel the cold now. I don't know how I'll keep warm if we have a really cold winter with lots of big frosts which is normal for this part of the country.
Meanwhile, Albo & his cronies are not suffering at all or having to make choices btwn heating & food
 
maybe they should check out AMBER and only pay wholesale prices + a $25 monthly fee. but if you dont have a smart meter they will change it for you.
 
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Whoever voted for this shit-show got exactly what they voted for!

This would not have happened under Pauline's watch...
 
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Reactions: Trina G
Meanwhile, Albo & his cronies are not suffering at all or having to make choices btwn heating & food
And neither are any politicians including the ones you like!
 
So long as our new climate change expert Bowen is keeping warm.
Stupid comment. Do you think it would be any better under the drongos you prefer.
 
So, the NT government gives with one hand to make themselves feel good, a pat on the back for seeming to do stuff while their cronies take it away with the other hand to get it back.
 

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