The Lagos State Electricity Regulatory Commission (LASERC) has clarified that its proposed 12-month billing rule does not cancel existing electricity debts, dismissing reports that consumers will no longer be required to pay bills older than one year.

The clarification was contained in a statement issued by the Commission on Tuesday and made available to Nairametrics.

LASERC said the proposed provision is intended to ensure electricity suppliers issue bills within a reasonable timeframe after electricity is consumed and will only apply when the new Retail Electricity Supply Code takes effect.

What LASERC is saying

LASERC said recent media reports had misinterpreted provisions of its proposed Retail Electricity Supply Code, creating the false impression that electricity debts older than 12 months would automatically be cancelled. The Commission stressed that the provision is prospective and will apply only after the Code takes effect.

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  • “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.”

The Commission said electricity debts accumulated before the Code takes effect remain valid and payable under existing laws and contractual obligations. It added that the proposed rule 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.

More insights

LASERC Chief Executive Officer, Temitope George, said the proposed Retail Electricity Supply Code is designed to strengthen accountability between electricity suppliers and consumers while providing a clear and predictable regulatory framework for the sector. She said the reforms are intended to improve billing practices without relieving customers of their responsibility to pay for electricity consumed.

  • “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.”

The Commission also reiterated that distribution licensees are legally required to meter all eligible consumers within timelines prescribed by the regulator. It said the proposed Code forms part of broader reforms aimed at improving billing transparency, strengthening investor confidence and promoting a safe, reliable, affordable and sustainable electricity market across Lagos.

What you should know

LASERC was established under the Lagos Electricity Law, signed by Governor Babajide Sanwo-Olu in December 2024, and assumed full regulatory responsibilities following the inauguration of its board in March 2026. The proposed Retail Electricity Supply Code forms part of the regulatory framework being developed to govern electricity supply in the state.

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The proposed Code sets out the rights and obligations of electricity consumers, distribution licensees and other electricity market participants.

The reforms form part of Lagos’ plan to build an independent electricity market and achieve 97.5% electricity availability across the state by 2030.