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

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.

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

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.

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.

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.

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.

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.