The SA Ombudsman has revealed “unjust” and “unreasonable” treatment of Aboriginal residents' bills by the Coober Pedy Council. 

Aboriginal people in highly remote council have been forced to live without power, told to “get used to being in the dark” if their electricity and water debts grow too high, according to reports. 

South Australia's Ombudsman Wayne Lines was sent to review Coober Pedy Council's management of utility bills for Aboriginal people, following a complaint from the Aboriginal Legal Rights Movement on behalf of residents. 

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

Debt collection processes were found to have made residents feel pressured to use native title money to pay outstanding bills to the local council. 

Mr Lines said this practice effectively “propped up” the council's utility debts.

The council reportedly cut electricity to several Aboriginal customers because of outstanding bills accumulated over several years without offering a repayment plan. It also did not identify which customers might be eligible for hardship support. 

Customers were charged for non-existing debts, while others did not have a translator to assist them in negotiating their council debts.

The Coober Pedy council was placed into administration in 2019 after a report that revealed serious maladministration in a $200 million power deal.

The issues raised in Mr Lines’ latest report occurred under the former council.

The current council has accepted the report's recommendations, but reports say there are still some ongoing issues over the supply of water and power in the town.

Mr Lines said the council should consider waiving “part or all of” residents’ electricity and water debts, and called on the SA government to look for alternative options for electricity and water supply that would reduce the burden on the council.