Electricity billing fraud may have cost the government hundreds of millions of dollars

Following Tuesday morning raids of the offices of the publicly owned National Electricity Corporation (CNEL), investigators claim dozens of employees received millions of dollars in bribes to lower the electric bills for large power users. The government says the corruption amounted to an estimated $20 million in 2025 and at least $300 million since 2014.

President Daniel Noboa and Interior Minister John Reimberg participated in the police raid of CNEL offices in Guayaquil on Tuesday morning.

According to Interior Minister John Reimberg, the suspects redrafted electric bills for dozens of business customers, lowering charges by as much 80%. Although the practice was centered in Santa Elena, Guayas, Los Ríos, Manabí and Sucumbíos Provinces, the offices of Centrosur in Cuenca were also raided.

In a press conference, Reimberg said 46 suspects are currently under investigation, but he expects the number to rise.

Prosecutors say the raids followed an audit of electric bills ordered by the Energy Ministry which showed large discrepancies between electric usage by some customers and the bills they paid. “These customers, in many cases, were charged for a fraction of the electricity they actually used,” Reimberg said. “When auditors checked the records, they discovered that original invoices were thrown out and new invoices were drafted for lower amounts by CNEL employees.”

Although no arrests were made Tuesday, they will be soon, Reimberg said. “We are in the process of gathering information and evidence, so we have a solid case to take to court,” he said. “Our intention is to put the corrupt employees in prison for a long time.”

Prior to the audit, a preliminary investigation found that some CNEL employees with salaries of less than $1,000 a month had personal assets in real estate and bank accounts of as much as $3 million. In one case in Santa Elena, a CNEL employee who reduced electricity charges by more than $5.9 million had assets of $2.3 million.

President Daniel Noboa, who participated in a CNEL raid in Guayaquil said that total loses to the government could amount to “far more” than the preliminary estimate of $300 million. “We are just beginning this investigation and don’t know where it will lead,” he said. “We are also investigating personnel at Arconel (Agency for Regulation and Control of Electricity) who may have participated in the corruption.”

Noboa added that he expects prosecutors to also indict business owners who bribed CNEL employees.

Government Minister Nataly Morillo led the raid at Centrosur headquarters in Cuenca but provided no details. Centrosur, a branch of CNEL, provides electricity to four provinces in southern Ecuador, including Azuay.