The Lagos State Electricity Regulatory Commission, LASERC has clarified that the proposed 12-month limit for issuing electricity bills under its draft Retail Electricity Supply Code does not cancel existing customer debts, dismissing reports suggesting a blanket debt write-off.
The Commission said the provision is prospective and will only take effect when the new Code comes into force, stressing that all electricity debts incurred before its implementation remain valid and payable under existing laws and contractual obligations.
LASERC explained that the provision, contained in Paragraph 12 of the proposed Code, is aimed at strengthening consumer protection by requiring electricity distribution companies (Discos) and other electricity suppliers to issue bills within 12 months of electricity consumption.
According to the Commission, once a bill is issued within the stipulated period, it remains valid and recoverable in line with normal contractual obligations.
Chief Executive Officer of LASERC, Mrs. Temitope George, said the proposed Code is designed to improve operational efficiency and accountability in the electricity market rather than penalise past operations.
“Our objective with the Retail Electricity Supply Code is to establish an environment of mutual accountability. 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,” she said.
George noted that the framework strikes a balance between protecting consumers from prolonged back-billing and providing operators with a clear and predictable regulatory environment.
She emphasised that while outstanding historical debts remain payable, electricity suppliers would be required to issue bills promptly once the new Code takes effect.
LASERC also reiterated that the proposed Code places a legal obligation on distribution licensees to meter all eligible customers within timelines prescribed by the Commission, describing the requirement as part of efforts to achieve 100 per cent metering across Lagos State.
The Commission said the regulatory framework is intended to protect consumers while encouraging electricity operators to modernise infrastructure and improve service delivery in the state’s electricity market.
LASERC advised stakeholders and members of the public seeking further details on the proposed Retail Electricity Supply Code and other regulatory instruments to consult the Commission’s official consultation portal.