Inequalities in income, housing, and health between Indigenous and non-Indigenous Australians are well documented, yet differences in energy outcomes remain understudied.

While prior research has largely focused on remote areas or specific aspects, this paper provides the first national-level analysis of Indigenous households’ experiences in the energy market, measuring the existence, scale, and structural drivers of energy inequality.

Two indicators are examined: difficulties in paying energy bills on time and self-reported inability to heat homes adequately.

Across two decades and independent datasets, Indigenous households are 9–10 percentage points more likely to experience energy stress, a difference that persists after accounting for income.

Wealth emerges as the strongest explanatory factor, with housing tenure, education, and financial resilience also contributing substantially.

Objective measures—arrears, disconnections, and hardship program participation—account for around 43% of the observed gap and provide practical means of identifying households at risk of energy stress.

Energy stress is highly persistent, with households that had prior bill payment difficulties 47 percentage points more likely to encounter similar challenges again in 2023.

These findings show that energy inequality is not merely a matter of short-term affordability but reflects deeper structural dimensions of economic inequality.

Policies centred on income support alone are unlikely to eliminate these disparities. Access to modest emergency funds of only a few thousand dollars reduces the observed gap by about 73%, highlighting the potential of targeted, government-backed assistance to strengthen household resilience and prevent disconnections.

Authors: Rohan Best & Duygu Yengin & Andrew Taylor & Maneka Jayasinghe & Ruth Wallace, 2025. "Energy Inequality for Indigenous Australians: Evidence on Structural Drivers Across Two Decades," School of Economics and Public Policy Working Papers 2025-06 Classification-., University of Adelaide, School of Economics and Public Policy.

Read the report

There are little things you can do now to keep your house cool or warm.

1. Use curtains or blinds on windows that are exposed to direct sunlight so that you lessen the amount of sun entering your home, keeping your home cooler.
2. Set your air-conditioner between 24–26°C in summer and 18–20°C in winter for the best balance between comfort and efficiency.
3. Close doors and turn off or adjust your air-conditioner when leaving home to save energy, and avoid cooling empty spaces.
4. Use natural light during the day instead of turning on lights.
5. Switch to LED lightbulbs – they use less power and last much longer than regular ones.
6. Wash clothes in cold water and wait until you have a full load before using the washing machine.
7. Dry clothes on the line instead of using the dryer, if possible
8. Check your fridge seals, if air is escaping, your fridge works harder and uses more power.
9. Turn off and unplug devices to save power when they’re not in use.
10. Use a power board with an on/off switch to make it easy to turn off multiple devices at once.

The posters below are from Race for 2030.

Community members and energy providers impacted by widespread electricity outages in the Flinders and Northern Flinders Ranges have come together for a special meeting.

Energy security, disconnections, and community engagement on energy project development were the number one themes at the Network's inaugural First Nations Clean Energy Gathering in South Australia.

Some 90% of First Nations who responded to a recent Heat Survey say their homes get too hot and they're struggling to afford their energy bills.

First Nations are also twice as likely as others surveyed to seek heat-related medical attention.

Distributed by ACOSS Australian Council of Social Service in partnership with the First Nations Energy Network and National Aboriginal and Torres Strait Islander Housing Association (NATSIHA), the annual survey is tracking the intersection between heat, housing, energy costs, and people experiencing financial and social disadvantage.

The ACOSS final report states the situation facing First Nations people surveyed is worse on most indicators and must be prioritised for solutions.

Read the report here

Remote communities often receive significantly reduced levels of public services compared to the rest of Australia. In addition, often these communities are not connected to Australia’s interconnected electricity systems and are not covered by the same regulatory and policy frameworks designed to protect consumer interests. In particular, remote First Nations communities often receive lower public service levels and consumer protections to those provided to other parts of Australia.

For many remote First Nations communities, increasingly regular temperature and climatic extremes are exacerbating energy insecurity issues.

In addition to the issue of regulatory disparities, other arrangements for the current supply of electricity in remote First Nations communities means that members of these communities are unable to participate in and benefit from Australia’s energy transition - e.g. to access the economic
(and associated cultural, health, education and wellbeing) benefits associated with household solar and battery.

Our submission to the Joint Select Committee on Northern Australia’s Inquiry into Energy, Food and Water Security offers three recommendations, including:

1. Ensure the proper implementation and resourcing of the First Nations Clean Energy Strategy so it can achieve its objectives, including through regular reporting at Energy Ministers’ meetings on the steps taken to implement the First Nations Clean Energy Strategy and progress towards meeting its objectives.
2. Ensure that energy systems in First Nations communities are designed to best meet, at least cost to First Nations community members, the economic and social needs of First Nations community members - and which enables First Nations community members to participate in and benefit from Australia’s energy transition.
3. Ensure that First Nations community members/energy consumers in remote locations are protected by equivalent regulatory and policy frameworks that support and protect energy consumers in more populous parts of Australia.

Read our submission here

The impacts of extreme heat, flooding, cyclones and drought is adding to the health and economic pressures and energy insecurity experienced by First Nations families and communities.

Clean renewable energy is a huge opportunity and if done right, may address many of these issues.

This session asks, how can we self-determine and secure our energy future in a changing climate?

SPEAKERS: Heidi Norman, Leslie Schultz, Vanessa Napaltjarri Davis, Vonda Moar Malone, Graeme Gardner (Facilitator)

One of the themes at the 26th World Energy Congress in Rotterdam from 22-25 April 2024 will be clean energy security for First Nations communities.