What the new 12-month electricity billing rule really means for Lagos consumers
By Aboki Forex —
The Lagos State Electricity Regulatory Commission (LASERC) has clarified that its proposed 12-month electricity billing rule will not cancel existing electricity debts owed by consumers. The commission said the rule will only apply after the new Retail Electricity Supply Code takes effect and is meant to ensure electricity companies issue bills within 12 months.
LASERC added that all outstanding electricity debts remain valid and must still be paid. The regulator said the misunderstanding arose from interpretations of its draft Retail Electricity Supply Code, stressing that the provision is forward-looking and will only become effective after the code is officially adopted.
What the proposed rule actually says
In a statement issued on Wednesday, LASERC explained that the proposed rule does not apply to electricity debts accumulated before the new code comes into force. It maintained that all existing liabilities remain legally enforceable and must still be paid in line with applicable laws and contractual agreements.
The clarification follows an earlier social media post by the commission stating that electricity supply licensees would not be permitted to recover charges for electricity consumed more than 12 months earlier, except in cases involving meter tampering, illegal electricity use, or deliberate obstruction of meter readings. According to LASERC, that post was widely misread as meaning all unpaid electricity bills older than one year would automatically be cancelled, prompting the regulator to issue a formal clarification.
How the billing timeline will work
The commission said Paragraph 12 of the proposed Retail Electricity Supply Code requires electricity distribution companies and other licensed suppliers to issue bills within 12 months of the electricity being supplied and consumed. It noted that once a bill is issued within that period, the debt remains legally recoverable regardless of how long the customer takes to settle it.
LASERC emphasised that the proposed regulation does not relieve consumers of their responsibility to pay for electricity they have used. Instead, it is designed to ensure that electricity providers issue bills promptly and within a reasonable timeframe, rather than allowing delayed billing to accumulate over several years.
What LASERC’s CEO says
The Chief Executive Officer of LASERC, Temitope George, said the proposed code is intended to improve operational efficiency and strengthen accountability between electricity suppliers and consumers. She explained that placing a 12-month limit on back-billing would encourage distribution companies to bill customers promptly while providing consumers with greater certainty.
According to her, the approach reflects standard utility regulation practices that balance consumer protection with the operational needs of electricity providers. George stressed that historical electricity debts will remain payable, but once the new code takes effect, electricity suppliers will be expected to issue bills within the prescribed timeframe.
The commission said the clarification became necessary after widespread public debate over the draft regulation, with many consumers mistakenly believing the proposal would automatically wipe out existing electricity debts after one year. LASERC reiterated that the proposed Retail Electricity Supply Code is intended to improve billing efficiency and transparency in the electricity market, not to invalidate outstanding customer obligations.
What this means for Lagos consumers and the naira
For Lagos electricity consumers, the bottom line is clear: old debts are not going away. The new rule, once adopted, will force distribution companies to bill promptly, ending the practice of dumping huge back-bills on customers years after consumption. This should reduce unexpected shocks for households and businesses, helping with cash flow planning. For the broader economy, more predictable billing can lower the risk of payment defaults and improve revenue collection in the electricity sector, which remains a drag on Nigeria’s business environment. However, consumers still must budget for past obligations while waiting for the new discipline to take effect.