The Lagos State Electricity Regulatory Commission (LASERC) has clarified that the proposed 12-month limit on the recovery of unmetered electricity charges under the Lagos State Electricity Supply Code will not amount to a waiver of existing electricity debts, insisting that liabilities accumulated before the regulation comes into effect remain valid and payable.

The clarification followed media reports suggesting that the provision would automatically cancel all outstanding electricity debts owed by customers.

LASERC explained that the provision is strictly prospective and will only take effect from the official commencement of the Lagos State Electricity Supply Code, stressing that it does not apply retrospectively to debts accrued before the code comes into force.

According to the commission, all pre-existing electricity debts remain enforceable and recoverable in line with applicable laws and contractual obligations.

It explained that Paragraph 12 of the proposed code requires electricity distribution companies (DisCos) and other electricity suppliers to issue bills for electricity consumed by customers within 12 months of consumption, adding that once a bill is issued within that period, it remains valid and collectible in accordance with normal contractual rules.

The commission said the provision is part of its consumer protection framework aimed at achieving universal metering across Lagos State, eliminating estimated billing and ensuring residents pay only for electricity actually consumed, while requiring operators to issue bills within a reasonable period and, in any event, not later than 12 months after consumption.

Chief Executive Officer and Executive Member of LASERC, Temitope George, said the regulation was designed to improve operational efficiency rather than invalidate historical obligations.

“Our objective with the Lagos State 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. This policy requirement, which is usual in utility regulation, carefully balances the consumer protection interest against prolonged estimated charges while giving operators a clear, predictable framework to operate within. Outstanding historical debts must still be settled, but moving forward, bills must be issued in a timely, predictable manner. The focus is squarely on universal metering,” She said.

LASERC also reiterated that under the new Supply Code, distribution licensees are legally required to meter all eligible consumers within timelines prescribed by the commission.

It warned that any licensee that fails to meet the metering obligations would forfeit the right to recover unmetered electricity charges that are more than 12 months old, except under specific, verified exceptions expressly provided for in the Supply Code.

The commission said the approach strikes a balance between protecting consumers from prolonged back-billing and compelling electricity operators to accelerate meter deployment and modernise Lagos State’s electricity distribution network.