GEBE is owed 184.7 million in unpaid bills, putting company under severe financial strain

GREAT BAY--NV GEBE is carrying Cg. 184.7 million in unpaid customer bills, placing significant financial pressure on the utility company as it continues efforts to maintain electricity and water services, recover outstanding balances, and address long-standing public concerns over billing and payment arrangements.

The amount represents outstanding bills owed to GEBE by residential and business customers, with the majority linked to residential accounts. Of that total, Cg. 104.3 million is categorized as doubtful trade receivables, meaning a substantial portion of the money owed may be difficult for the company to collect.

The figures place GEBE’s financial condition at the center of the wider discussion on relief, disconnections, disputed bills, payment plans and the company’s ability to remain financially stable while continuing to serve the public. Despite this reality, GEBE is still urging the public to approach the company to make payment arrangements re-iterating that the company is always willing to work with residents.

While consumers have continued to raise concerns about affordability, disputed balances and billing accuracy, the size of GEBE’s unpaid receivables highlights the other side of the crisis: the utility company is also under pressure from unpaid bills that affect cash flow, fuel procurement, maintenance, system upgrades and continuity of service.

In response to the outstanding receivables, GEBE has implemented and continues to implement several structural recovery and collection measures aimed at improving transparency, consistency and effectiveness in its billing and collection process.

One of those measures is the display of outstanding balances on monthly invoices. This measure has been in effect since the October billing cycle and applies uniformly to all customers.

GEBE has also activated its SAP automated dunning and collections process, intended to provide a more systematic, timely and standardized approach to following up on overdue accounts.

Customers with overdue balances who have provided an email address now receive formal default notices. These notices formally place customers in default, request settlement of outstanding balances, and include a detailed statement of overdue invoices.

GEBE is also in the process of replacing its legacy AS/400 system with SAP S/4HANA, which includes processes for receivables management, collection strategies and financial control. The company is also working on customer self-service improvements through the development of a client portal focused on customer service and payment compliance.

The unpaid bills issue is closely tied to the current debate over disconnections and payment arrangements. GEBE currently applies disconnections based on internal operational practices rather than a formally approved standalone disconnection policy.

A full review is underway to develop a comprehensive and legally sound collection and disconnection policy. That policy is expected to define escalation steps, customer communication, safeguards for vulnerable customers, and the circumstances under which disconnections may occur.

The finalized policy is expected to be submitted to the Supervisory Board for approval in June 2026.

GEBE is said to be operating in line with the principle that disconnection should be used only as a measure of last resort, while the company works to formally align that practice with national and international standards. Until the formal policy is approved, the company continues to apply disconnection practices conservatively and proportionately.

Disconnections are currently being limited to customers with outstanding balances originating from 2025 or earlier invoices. When a customer contacts GEBE and enters into a payment arrangement, reconnection can take place immediately.

For residential customers, GEBE generally offers payment arrangements requiring an upfront payment of 10 to 25 percent of the outstanding amount, with the remaining balance to be paid over a maximum of 24 months.

If the amount owed is too large compared to the customer’s ability to pay, GEBE may lower the monthly payment and allocate the balance over the 24-month period, after which a new payment arrangement can be discussed.

For customers who do not have the capacity to make the 10 percent upfront payment, including some seniors, payment arrangements can be based on the customer’s actual payment capacity.

For commercial and industrial customers, the payment arrangement generally requires an upfront payment of 25 percent of the outstanding amount, with the remaining balance to be paid over a period of 12 to 24 months.

The issue of unpaid bills is also connected to the aftermath of the 2022 cyberattack. After the cyberattack and loss of data, customer outstanding balances were re-entered into the system based on outstanding balance reports from before the incident.

When GEBE restarted billing for March, April and May 2022, incorrect meter readings from January 2022 were used, resulting in incorrect bills during that period. Correct meter readings were entered in June 2022, and the incorrect bills from March to May 2022 were reversed and replaced with corrected bills.

That process took considerable time and effort and continued during 2023. Payments that had been applied to bills that were later reversed were reallocated to the correct bills.

Disputes over financial errors are handled through engagement with customers by email or in person and by performing a full reconciliation of meter readings, invoices and payments. Consumer disputes can also be handled through direct contact by email, WhatsApp or in person at GEBE when necessary.

GEBE has also put control mechanisms in place to help prevent incorrect claims. One such mechanism flags bills where consumption differs by more than 30 percent above or below the previous bill. When that threshold is exceeded, the bill is prevented from being automatically processed until it is reviewed.

The large outstanding receivables highlight the difficult balance now facing GEBE and government. On one side, many customers are demanding clarity on disputed balances, billing history and affordability. On the other side, the utility company is carrying a large amount of unpaid customer debt, including more than Cg. 100 million considered doubtful.

The situation reinforces the broader challenge facing the utility: providing reliable electricity and water service, maintaining financial stability, addressing disputed balances, and rebuilding public confidence after years of billing concerns and operational disruptions.

The information was provided in Parliament by Prime Minister Dr. Luc Mercelina during Friday’s public meeting on GEBE, in response to questions from Members of Parliament about the company’s receivables, billing practices, payment arrangements, disconnection policy and post-cyberattack corrections.

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