A Queens, New York, woman spent a decade trying to reduce her electricity bills, only to discover she had been paying for her upstairs neighbor’s power the entire time.
Nicole Niceforo told FOX 5 NY in October that her unusually high bills made her afraid to run her air conditioner, even on scorching summer days. She even resorted to washing dishes by hand and limiting her electricity use, but her bills kept climbing.
Niceforo first raised concerns with her utility provider, Con Edison, in 2016, when she asked for her electricity meter to be inspected. Instead, the company directed her to building management.
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More than nine years and numerous complaints later, an inspection finally revealed that her electricity bill had been switched with her upstairs neighbor’s.
Niceforo said she was “outraged” by the discovery, but also relieved to finally have an explanation for her unusually high bills.
Con Edison acknowledged the error in writing and refunded her more than $6,000. But the refund covered only six of the roughly 10 years she had been overcharged, leaving nearly four years of possible overcharges unpaid.
Niceforo took her case to the New York State Department of Public Service, hoping to recover the rest. But the regulator sided with Con Edison, which argued it wasn’t obligated to revisit bills more than six years old.
The regulator also said it had no record of a formal complaint from Niceforo in 2016, even though emails obtained by FOX 5 NY reportedly showed she had questioned her bills that year.
What to do when your electric bill doesn’t add up
Niceforo’s case may be very unusual, but it shows why consumers shouldn’t ignore high electricity bills, especially when cutting back on power doesn’t seem to help.
New York has several laws designed to protect utility customers from billing errors and other disputes. Among them is the Home Energy Fair Practices Act (HEFPA), which sets rules for billing, payments, customer complaints and service shutoffs.
Similar consumer protections exist elsewhere in the country. All 50 states have utility regulatory agencies, though their authority varies by state and utility type, according to the National Association of Regulatory Utility Commissioners, which represents state utility regulators.
Customers who believe they’re being overcharged should contact their utility provider to dispute the bill or request a review. If the issue remains unresolved, they can contact their state utility regulator. The Citizens Utility Board, a consumer advocacy group, also has a complaint form where customers can report billing issues and other grievances.
As Consumer Reports recently recommended, customers should also keep copies of their electricity bills and any correspondence with their utility provider, particularly if they suspect something is wrong. Keeping records can help establish when a problem was first reported and provide evidence if the dispute drags on.
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When utilities outpace inflation
Billing disputes are especially frustrating when Americans are already struggling with rising electricity costs. According to data from the Bureau of Labor Statistics, the average price of electricity in U.S. cities reached 19.6 cents per kilowatt-hour in September, up 46% since January 2020. Electricity prices have sharply outpaced overall inflation, with the Consumer Price Index for urban consumers climbing nearly 30% over the same period.
For some households, higher electricity bills are already eating into grocery budgets. An October survey by Consumer Reports found that roughly one in five Americans had cut back on groceries because of rising electricity costs.
With electricity demand rising, partly because of the expansion of AI data centers, consumers face the prospect of even higher bills. Many are also unhappy with how utility companies are regulated. The Consumer Reports survey found that most respondents didn’t believe state regulators were protecting their interests.
“The public is becoming increasingly distrustful that government is looking out for them,” Sara Enright, senior director of safety and energy at Consumer Reports, told CBS News.
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Sam Bourgi is a US based financial markets specialist with over a decade of experience covering investing, economics and digital assets. His work has been cited by Congress, the DOJ, the Bank for International Settlements, Bloomberg, Reuters, CNBC, Fox and Newsweek, as well as academic institutions.
