Chongqing Gas Group, a Chinese state-backed gas supplier, has been fined CNY8.1 million (USD1.1 million) by the market regulator in the southwestern municipality for failing to take adequate actions to resolve problems with abnormal gas bills.

The Chongqing Administration for Market Regulation imposed the penalty and ordered immediate action after Chongqing Gas failed to fulfill its rectification duties since the issues were first found last April, the regulator said on Feb. 14. Chaotic meter reading cycles, unauthorized estimated readings, incorrect readings, insufficient meter reading staff, and other problems persist, harming the public interests, it added.

Chongqing Gas will promptly complete rectification work, ensure clients' rights are protected, and hold relevant individuals and departments accountable, it announced yesterday.

Early last year, many residents in Chongqing reported significant increases in their gas bills following the replacement of meters at the end of 2023. The widespread public concern prompted the local government to launch a probe into Chongqing Gas last April, which found overcharges.

Consequently, Chongqing Gas was required to refund the overcharged bills, while Che Dechen, its chairman and general manager at the time, was removed from his posts.

On Apr. 28, Chongqing Gas said it had refunded CNY2.9 million (USD400,000) in overcharges and pledged to optimize its billing process and enhance employee service capabilities. However, residents again reported abnormal bills earlier this year, prompting regulatory attention.

China Resources Gas Group, a unit of state-owned conglomerate China Resources Group and one of the country's biggest city gas suppliers, is the largest shareholder of Chongqing Gas, with a stake of about 39 percent.