EFFECT OF ESTIMATED ELECTRICITY BILLING ON THE FINANCIAL PERFORMANCE OF SMES IN EBONYI STATE NIGERIA

This study investigates the effect of estimated electricity billings on the net profits of small businesses, household’s incomes and the internally generated revenue in Ebonyi State Nigeria, employing a quantitative approach with structured questionnaires. The demographic profile of the sample population, comprising 150 SMEs, reflects a diverse cross-section of Abakaliki, ensuring a comprehensive exploration of the subject matter. Quantitative analysis, relying on regression models, tests hypotheses related to the effects of estimated billings on net profit for small businesses, disposable income for households, and the Internally Generated Revenue (IGR) of SMEs in Ebonyi State. Findings from the study reveal a pervasive dissatisfaction among small businesses with the current system of estimated billings, with a significant proportion expressing that it significantly reduces their net profit. Similar sentiments emerge from households, where a considerable number believe that estimated billings impact their income, contributing to financial challenges and affecting their overall financial stability. Recommendations include a transparent billing system review, targeted policies, and the promotion of prepaid meters for enhanced consumer control and efficiency. This research contributes to understanding energy poverty dynamics and offers practical insights for stakeholders to foster a more sustainable and consumer-centric energy framework in urban Nigerian contexts.