LASERC: 12-Month Billing Rule Doesn’t Erase Old Electricity Debts

The Lagos State Electricity Regulatory Commission (LASERC) has moved to clear the air over widespread misconceptions surrounding its proposed 12-month electricity billing rule, emphasising that it does not cancel existing debts owed by consumers.

The clarification comes after reports suggested that electricity bills older than one year would automatically be written off. LASERC said those claims are misleading, explaining that the proposed provision under the Lagos State Retail Electricity Supply Code is aimed at regulating future billing practices rather than forgiving outstanding debts accumulated before the code takes effect.

In a statement, LASERC Chief Executive Officer Temitope George said all electricity debts incurred before the implementation of the new regulatory framework remain valid and enforceable under existing laws and contractual agreements. She stressed that customers are still obligated to settle legitimate outstanding bills.

According to the commission, the proposed 12-month limit is designed to curb excessive back-billing by electricity distribution companies and strengthen consumer protection. Once the new code becomes operational, electricity providers will generally be restricted from recovering charges that are more than 12 months old, except in cases involving meter tampering, electricity theft or situations where customers deliberately prevented meter readings.

LASERC explained that the policy is intended to improve fairness, transparency and accountability within Lagos’ electricity market while providing greater certainty for both consumers and service providers.

The commission urged residents not to rely on misleading interpretations circulating on social media and other platforms, reiterating that the proposed rule applies only to future billing under the new regulatory regime and has no effect on previously incurred liabilities.

The clarification forms part of Lagos State’s ongoing electricity sector reforms following the transfer of regulatory oversight to the state under the Electricity Act 2023. LASERC said the reforms are focused on building a more efficient, transparent and consumer-friendly electricity market that balances customer rights with the financial sustainability of electricity operators.