LASERC: PROPOSED 12-MONTH BILLING RULE DOES NOT ERASE OUTSTANDING ELECTRICITY DEBTS
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By; Sunmola Ganiyat
The Lagos State Electricity Regulatory Commission (LASERC) has clarified that its proposed 12-month billing rule does not cancel existing electricity debts, dismissing reports suggesting that consumers would no longer be required to pay bills older than one year.
In a statement issued on Tuesday, the commission said recent media reports had misinterpreted provisions of its proposed Retail Electricity Supply Code, creating the false impression that electricity debts older than 12 months would automatically be written off.
LASERC explained that the proposed provision is intended to ensure electricity suppliers issue bills within a reasonable period after power is consumed and will only take effect once the new Retail Electricity Supply Code comes into force.
The commission stressed that all electricity debts accumulated before the implementation of the new Code remain valid and must be paid in line with existing laws and contractual obligations.
According to LASERC, the proposed rule simply requires electricity distribution companies (DisCos) and other electricity suppliers to issue bills within 12 months of electricity consumption. Once issued within that timeframe, the bills remain valid and recoverable.
LASERC Chief Executive Officer, Temitope George, said the proposed Retail Electricity Supply Code is designed to strengthen accountability between electricity suppliers and consumers while providing a more transparent and predictable regulatory framework for the sector.
She noted that the reforms are aimed at improving billing practices without exempting customers from paying for electricity already consumed.
“By limiting back billing for electricity consumption to 12 months, we are creating a powerful regulatory incentive for distribution licensees to act responsibly towards their customers. Outstanding historical debts must still be settled, but moving forward, bills must be issued in a timely and predictable manner,” George said.
The commission also reiterated that electricity distribution licensees are legally required to meter all eligible customers within the timelines prescribed by the regulator.
LASERC added that the proposed Code is part of broader reforms aimed at improving billing transparency, strengthening investor confidence, and promoting a safe, reliable, affordable, and sustainable electricity market across Lagos State.
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