The Lagos State Government has dismissed reports suggesting that electricity consumers in the state will no longer be required to pay outstanding electricity debts, clarifying that the proposed 12-month billing recovery rule under the new Lagos State Electricity Supply Code does not constitute a blanket waiver of debt.
The government emphasised that the provision, which has attracted significant public attention, applies only to electricity bills issued after the new Supply Code takes effect and does not extinguish debts incurred before its commencement.
It stated that all existing electricity debts remain valid and payable under applicable laws and contractual agreements.
The clarification was contained in a statement issued yesterday by the Lagos State Electricity Regulatory Commission (LASERC), which said recent media reports had misrepresented the proposed regulation as an immediate cancellation of historical electricity debts.
LASERC explained that the 12-month billing recovery rule is prospective and will only take effect once the Lagos State Electricity Supply Code officially comes into force.
It stressed that the provision does not apply retroactively, meaning all electricity debts incurred before the commencement of the Code remain valid and payable.
According to the Commission, the rule simply requires electricity distribution companies (Discos) and other electricity suppliers to issue bills for electricity consumed within 12 months of the date of consumption.
Once a bill is issued within that period, it remains valid and recoverable under existing contractual obligations.
LASERC noted that the policy is intended to protect consumers from prolonged estimated back-billing while encouraging electricity providers to improve operational efficiency and accelerate the rollout of prepaid meters across the state.
Chief Executive Officer and Executive Member of LASERC, Temitope George, said the new Supply Code is designed to promote accountability between electricity providers and consumers.
“Our objective with the Lagos State Electricity Supply Code is to establish an environment of mutual accountability. By limiting back-billing for electricity consumption to 12 months moving forward, we are creating a strong regulatory incentive for distribution licensees to accelerate their metering timelines,” she said.
George added that the policy strikes a balance between consumer protection and the operational needs of electricity providers.
“Outstanding historical debts must still be settled, but moving forward, bills must be issued in a timely and predictable manner. The focus is squarely on universal metering,” she said.
The Commission also reiterated that electricity distribution licensees are legally required to meter all eligible customers within timelines prescribed by the regulator.
It warned that any licensee that fails to meet its metering obligations would forfeit the right to recover unmetered electricity charges older than 12 months, except in specific circumstances provided for under the Supply Code.
LASERC said the approach is intended to shield consumers from sudden, excessive back-billing while driving investment in metering and improving electricity service delivery across Lagos State.