LASERC Clarifies 12 Month Billing Rule Does Not Cancel Outstanding Electricity Debts

By Benson Daniel

The Lagos State Electricity Regulatory Commission (LASERC) has clarified that the recently introduced 12 month billing rule does not erase or forgive outstanding electricity debts owed by consumers, urging customers to continue meeting their financial obligations to electricity distribution companies.

The commission explained that the regulation is designed to promote fairness, transparency and accountability in electricity billing rather than provide debt amnesty for unpaid bills. It noted that the rule limits the period within which distribution companies can recover previously unbilled charges under specific circumstances but does not invalidate legitimate debts already incurred by customers.

According to LASERC, consumers who have accumulated verified electricity bills remain responsible for settling those obligations in line with existing contractual and regulatory provisions. The commission stressed that the policy should not be interpreted as a blanket waiver for historical debts.

The clarification follows growing public misunderstanding over the implementation of the new billing framework, with some electricity consumers believing that all debts exceeding 12 months would automatically be written off. LASERC said such interpretations are inaccurate and could create unnecessary disputes between customers and electricity service providers.

The regulator reiterated that the policy seeks to encourage efficient billing practices by ensuring electricity distribution companies issue bills promptly and maintain accurate customer records. It added that the framework also protects consumers from being presented with excessive backdated bills resulting from administrative lapses by service providers.

LASERC urged electricity consumers to verify their account balances through their respective distribution companies and report billing disputes through established complaint resolution channels. The commission assured residents that it remains committed to protecting consumer rights while ensuring operators comply with regulatory standards.

Industry stakeholders have described the clarification as important for preventing misinformation and promoting greater confidence in the electricity market. They noted that improved billing transparency would strengthen trust between consumers and electricity providers while supporting a more sustainable power sector.

The commission reaffirmed its commitment to ensuring a fair, transparent and accountable electricity market that balances consumer protection with the financial sustainability of electricity distribution companies.