The Lagos State Electricity Regulatory Commission (LASERC) has clarified that its proposed 12-month billing rule will not cancel existing electricity debts, dismissing reports suggesting consumers would no longer be required to pay bills older than one year.
In a statement issued on Tuesday, the Commission explained that the proposed provision under its new Retail Electricity Supply Code is intended to ensure electricity suppliers issue bills within a reasonable period after electricity is consumed. It stressed that the rule will only take effect when the new Code becomes operational.
LASERC said recent media reports had misinterpreted the proposed regulation, creating the false impression that outstanding electricity debts exceeding 12 months would automatically be written off.
The Commission emphasised that all electricity debts incurred before the new Code comes into force remain valid and must be paid in accordance with existing laws and contractual obligations.
According to LASERC, the proposed rule simply requires electricity distribution companies (DisCos) and other licensed suppliers to issue bills within 12 months of electricity consumption. Once issued within that period, the bills remain legally recoverable.
Temitope George, LASERC Chief Executive Officer, said the proposed Retail Electricity Supply Code is designed to promote accountability between electricity suppliers and consumers while creating a more transparent and predictable electricity market.
She explained that limiting back billing to 12 months is intended to discourage delayed billing and improve customer confidence, not excuse consumers from paying for electricity already used.
“By limiting back-billing for electricity consumption to 12 months, we are creating a strong regulatory incentive for electricity distribution companies to bill customers promptly,” George said.
She added that while future bills must be issued within the prescribed timeframe, outstanding historical debts remain payable.
The Commission also reiterated that electricity distribution companies are legally required to meter eligible customers within timelines set by the regulator.
LASERC said the proposed Code forms part of wider reforms aimed at improving billing transparency, boosting investor confidence, and delivering a safer, more reliable, affordable and sustainable electricity market in Lagos.
Established under the Lagos Electricity Law signed by Governor Babajide Sanwo-Olu in December 2024, LASERC assumed full regulatory oversight of the state’s electricity market in March 2026.
The Commission has already approved 14 electricity licences covering off-grid generation, embedded generation, independent electricity distribution, metering services and interconnected mini-grid operations. These reforms support Lagos State’s target of achieving 97.5 per cent electricity availability by 2030 through expanded metering, private sector investment and decentralised power supply.
