BUSINESS
12-MONTH BILLING RULE WON’T WIPE CONSUMERS’ DEBTS – LASERC
The Lagos State Electricity Regulatory Commission (LASERC) has clarified that its 12-month billing rule does not automatically cancel electricity consumers’ debts. The regulation only restricts electricity distribution companies from recovering charges older than one year in most cases.
According to LASERC, electricity supply licensees cannot demand payment for bills exceeding 12 months, except in proven cases of meter tampering, illegal electricity consumption, or deliberate obstruction of meter reading. The provision, contained in Paragraph 35(1) and (2) of the Lagos State Retail Electricity Supply Code, aims to protect consumers from arbitrary back-billing arising from utility errors.
The commission issued the clarification amid growing complaints from residents about sudden demands for historical debts. It urged consumers to know their rights and report violations promptly.
LASERC emphasised that legitimate recent debts remain enforceable. The rule promotes billing accuracy and timely meter reading while encouraging DisCos to improve operational efficiency.
This consumer protection measure forms part of broader reforms in Lagos’ electricity market following the transfer of regulatory powers under the Electricity Act 2023. Stakeholders say it brings much-needed relief but requires strict enforcement to prevent abuse.