The Lagos State Electricity Regulatory Commission has issued a clarification regarding what it described as recent media interpretations of its proposed Retail Electricity Supply Code, known as the Code.
In a statement obtained on Tuesday, the agency clarified that the rule limiting billing or recovery for electricity consumed to 12 months “does not wipe out historical debts.”
It said the clarification comes in response to “misinterpretations suggesting an immediate, sweeping cancellation of all debts owed by customers for electricity supply.”
“Firstly, LASERC clarifies that this provision is strictly prospective and will only take effect upon the coming into force of the of the Code. It does not apply retroactively to debts accrued before the Code comes into force.
“All pre-existing electricity debts remain valid and payable by consumers under applicable laws and contractual obligations,” the statement said.
According to the agency, the rule in Paragraph 12 of the Code is a cornerstone of LASERC’s consumer protection agenda.
“It only requires Discos and other suppliers of electricity is issued a bill for electricity consumed by a customer within 12 months of the electricity being supplied and consumed – once the bill is issued within this timeline, it remains effective and collectible in accordance with the normal rules of contract law.
“The Code does not interfere with residents obligation to pay for the actual energy that they consume, but only requires that Discos and other operators issue a bill for such consumption within a reasonable time and in any event, no later than 12 months after the electricity is consumed.”
Mrs Temitope George, the Chief Executive Officer of LASERC, emphasised that the Code is designed to enforce systemic efficiency rather than penalise past operations.
“Our objective with the Retail Electricity Supply Code is to establish an environment of mutual accountability,” stated Mrs Temitope George, the CEO of LASERC.
“By limiting back-billing for electricity consumption to 12 months, we are creating a powerful regulatory incentive for distribution licensees to act responsibly towards their customers. This requirement, which is usual in utility regulation carefully balances the consumer protection interest against the operators requirement of 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,” she said.
LASERC also reiterated that under the Code, distribution licensees are legally obligated to meter all eligible consumers within timelines prescribed by the Commission.
It added that this balanced regulatory approach ensures that consumers are protected from the sudden burden of prolonged back-billing while simultaneously driving private sector operators to modernise the state’s power infrastructure.
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