The Lagos State Electricity Regulatory Commission (LASERC) has said that its proposed 12-month billing rule will not cancel existing electricity debts, debunking some media reports that consumers will no longer be required to pay old bills.
Iin a statement issued by the Commission on Tuesday it clarified that the proposed provision in its draft new Retail Electricity Supply Code was aimed at ensuring that electricity suppliers issue bills within a reasonable timeframe after electricity had been supplied and would only apply when the new code takes effect.
According to the LASERC, recent media reports have misinterpreted provisions of its proposed Code, with most of them creating the false impression that electricity debts older than 12 months would automatically be cancelled.
The commission maintained that the provision remained prospective and would apply only after the Code becomes operational.
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It clarified: “Lagos State Electricity Regulatory Commission (LASERC) has issued a vital clarification regarding recent media interpretations of its proposed Retail Electricity Supply Code, explicitly clarifying that the rule limiting billing or recovery for electricity consumed to 12 months does not wipe out historical debts.
“This clarification comes in response to misinterpretations suggesting an immediate, sweeping cancellation of all debts owed by customers for electricity supply”, LASERC added.
The Commission stated that electricity debts accumulated before the Code takes effect remained valid and payable under existing laws and contractual obligations, adding that the proposed Code simply requires electricity distribution companies (DisCos) and other electricity suppliers to issue bills within 12 months of electricity consumption, after which those bills remain valid and recoverable.
Commenting on the draft regulatory framework, the Chief Executive Officer of LASERC, Mrs. Temitope George, said the proposed Code was designed to strengthen accountability between electricity suppliers and consumers while providing a clear and predictable regulatory framework for the sector.
Specifically, she said the ongoing reforms of the commission were intended to improve billing regime without relieving customers of their responsibility to pay for electricity consumed.
The LASERC boss stressed: “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”, she added.
To disabuse electricity consumers’ minds in the state, the commission stated that its distribution licensees were legally required to meter all eligible consumers within timelines prescribed by it.
The LASERC explained that the proposed Code formed part of its broader reform initiatives aimed at improving billing transparency, strengthening investor confidence and promoting a safe, reliable, affordable and sustainable electricity market across Lagos.
It would be recalled that the commission was established under the Lagos Electricity Law, signed by Governor Babajide Sanwo-Olu in December 2024, and following the constitution of its governing board in May this year commenced full regulatory roles in the state’s electricity sector.
In the month, the LASERC board approved 14 electricity licences and permits for off-grid electricity generation, distribution, metering services and interconnected mini-grid operations
