12-month billing rule does not wipe out electricity debts -Lagos agency

Reports suggesting that consumers will no longer need to pay electricity bills older than one year have been dismissed by the Lagos State Electricity Regulatory Commission (LASERC). The commission clarified that its proposed 12-month billing rule does not equate to a cancellation of existing electricity debts.

According to a statement released by LASERC, recent media coverage misinterpreted provisions within its proposed Retail Electricity Supply Code. The commission emphasized that the rule, once enacted, will ensure electricity suppliers issue bills promptly after consumption. However, it stressed that debts accumulated before the new code takes effect remain valid and are payable under current laws and contractual agreements.

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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.

LASERC Chief Executive Officer, Temitope George, explained that the reform is designed to foster accountability between suppliers and consumers. The 12-month limit on back billing serves as a regulatory incentive for distribution licensees to act responsibly. While historical debts must still be settled, future bills will be issued in a timely and predictable manner. The commission also reiterated the legal requirement for distribution licensees to meter all eligible consumers within specified timelines, as part of broader efforts to enhance billing transparency, boost investor confidence, and promote a sustainable electricity market in Lagos State.

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Outstanding historical debts must still be settled, but moving forward, bills must be issued in a timely and predictable manner.