12-MONTH BILLING RULE DOES NOT WIPE OUT ELECTRICITY DEBTS -LAGOS AGENCY

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

As reported by Nairametrics on Wednesday, the clarification was contained in a statement issued by the commission on Tuesday.

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 written off.

According to the commission, the proposed provision is intended to ensure that 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.

It stressed that electricity debts accumulated before the Code comes into force remain valid and payable under existing laws and contractual obligations.

The commission explained 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 such bills remain valid and recoverable.

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,” George said.

The commission also reiterated that distribution licensees are legally required to meter all eligible consumers within timelines prescribed by the regulator.

It added that 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 State.