The Lagos State Electricity Regulatory Commission (LASERC) has issued a formal clarification regarding its 12-month billing rule under the Retail Electricity Supply Code, dismissing reports suggesting that electricity consumers in the state will automatically have their historical electricity debts written off.
The Chief Executive Officer of LASERC, Temitope George, explained that while the rule prevents electricity distribution companies (DisCos) from recovering unmetered or back-billed charges older than 12 months moving forward, it does not cancel pre-existing liabilities accrued before the regulatory code takes effect.
Understanding the 12-Month Rule: Prospective vs. Retrospective
The commission noted that public misunderstanding arose following the release of Paragraph 35(1)–(2) of the proposed supply code, which caps historical back-billing. LASERC emphasized the key distinction between pre-existing customer debts and future billing limits:
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Pre-Existing Debts Remain Enforceable: Any valid electricity charges, arrears, or unpaid bills accumulated by consumers prior to the commencement of the new code remain valid and fully collectible under existing laws and supply agreements.
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12-Month Limit for DisCos Going Forward: Moving forward, once an unmetered customer consumes electricity, DisCos must issue the corresponding bill within 12 months. If a DisCo fails to bill the customer within that 12-month window due to its own administrative delays or estimated billing errors, it forfeits the legal right to back-bill or demand payment for those older unbilled periods.
“Our objective with the Retail Electricity Supply Code is to establish an environment of mutual accountability… By limiting the recovery of unmetered bills to 12 months moving forward, we are creating a powerful regulatory incentive for distribution licensees to accelerate their metering timelines. Outstanding historical debts must still be settled, but moving forward, bills must be issued in a timely, predictable manner.” — Temitope George, CEO of LASERC
Core Framework of the LASERC Rule
┌────────────────────────────────────────────────────────────────────────┐
│ LASERC 12-MONTH RULE BREAKDOWN │
├────────────────────────────────────────────────────────────────────────┤
│ • Historical Accrued Debts : Valid and recoverable; must be paid by │
│ customers as contracted. │
│ │
│ • DisCo Billing Window : DisCos have a maximum of 12 months to │
│ bill for unmetered energy consumed. │
│ │
│ • Forfeiture Clause : Unbilled charges older than 12 months │
│ cannot be back-billed later, except in cases of verified fraud. │
│ │
│ • Fraud/Tampering Exceptions: The 12-month cap DOES NOT apply if a │
│ customer engaged in meter bypass, tampering, or obstruction. │
└────────────────────────────────────────────────────────────────────────┘
(Sources: LASERC Official Directives & Public Statements)
Key Exceptions: When the 12-Month Cap Is Voided
The commission stressed that the 12-month limitation is a protection for law-abiding consumers against administrative delays by utilities, not a shield for illegal activity. DisCos retain the statutory right to back-bill beyond 12 months under three specific conditions:
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Meter Tampering: Physical or electronic alteration of the metering equipment.
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Illegal Hookups / Energy Theft: Unauthorized direct connections or energy theft.
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Obstruction of Access: Preventing utility officials or meter readers from accessing the premises to verify consumption records.
Driving Universal Metering in Lagos
The regulatory adjustment aligns with LASERC’s wider mandate following the transfer of electricity oversight from NERC to the Lagos State Government under the Electricity Act 2023. By penalizing DisCos that delay billing or rely on long-term estimated billing, the commission aims to force operators to accelerate smart meter deployment across all residential and commercial feeders in Lagos State.
Ayodele Quadri
Correspondent
