BUSINESS
LASERC BARS RECOVERY OF ELECTRICITY BILLS BEYOND ONE YEAR
The Lagos State Electricity Regulatory Commission (LASERC) has introduced a new directive prohibiting electricity distribution companies (DisCos) from recovering outstanding bills older than one year from consumers, in a move aimed at protecting residents from arbitrary and prolonged billing practices.
The Commission announced the policy on Friday during a stakeholders’ engagement in Lagos, stating that any electricity debt exceeding 12 months shall no longer be enforceable. Consumers will only be liable for bills issued within the immediate past one-year period, provided they are accurately metered or estimated in line with regulatory guidelines.
LASERC Chairman, Dr. Adekunle Adeoye, explained that the decision addresses widespread complaints about inflated and backdated bills that have burdened households and businesses. “This directive promotes fairness, transparency, and accountability in billing. DisCos must improve their metering and billing efficiency rather than shifting the burden of their operational lapses to consumers,” he said.
The new rule aligns with efforts to sanitise the power sector following the recent electricity tariff hikes and ongoing reforms. It also mandates DisCos to intensify meter rollout and ensure timely issuance of accurate bills. Any attempt to recover bills beyond the one-year window will attract sanctions, including fines and potential licence reviews.
Consumer rights groups have welcomed the development. The Executive Director of the Consumer Protection Network, Mrs. Funke Afolabi, described it as “a major relief for millions of Lagosians who have been harassed with ancient bills.” She urged strict enforcement to prevent loopholes.
However, some DisCos expressed concerns over potential revenue shortfalls, arguing that legacy debts accumulated due to poor infrastructure and low collection rates. LASERC assured that the policy will be implemented alongside incentives for improved service delivery and timely payments.
The Commission called on electricity consumers to settle current bills promptly while challenging any disputed charges through official channels.
This latest intervention is expected to ease the cost-of-living pressure on residents and restore confidence in the power sector.