Lagos electricity customers must still pay old debts despite new 12-month rule
LASERC clarified its 12-month billing limit targets future unmetered charges only and leaves all prior debts intact.
The Lagos State Electricity Regulatory Commission clarified that its proposed 12-month billing rule does not cancel existing electricity debts.
LASERC issued the statement to counter reports claiming consumers would no longer owe bills older than one year. The rule forms part of the Lagos State Electricity Supply Code and applies only from the code’s official start date.
Details of the clarification
The commission stated that debts accrued before the code takes effect remain valid and recoverable under existing laws and contracts. Under the code, licensees must issue bills for consumed electricity within 12 months of the date of consumption. If a bill is issued inside that window it stays collectible. The 12-month limit mainly restricts recovery of unbilled unmetered charges older than one year, except in proven cases of meter tampering, illegal use or obstruction of meter reading, according to Paragraph 12 of the Supply Code and Paragraph 35(1) and (2) of the Retail Electricity Supply Code.
LASERC emphasised the provision is prospective only. It will not wipe out historic obligations. Licensees that fail to meet metering timelines will generally forfeit the right to recover unmetered charges beyond 12 months, except where specific exceptions apply. The measure is framed as consumer protection aimed at universal metering and the end of estimated billing so residents pay only for electricity they actually consume.
Background and timing
The clarification follows Nigeria’s Electricity Act 2023, which lets states regulate local electricity markets. Lagos is the first to publish a detailed Retail Electricity Supply Code with explicit timelines for billing. Media and social reports had interpreted the 12-month window as a debt waiver, prompting LASERC to correct the record through official channels according to The Guardian Nigeria.
The rule shifts operational risk onto distribution licensees. Any failure to detect or bill consumption inside 12 months can result in irrecoverable revenue losses for them as reported by Africa Energy Pulse. Analysts note this creates stronger incentives for utilities to accelerate metering across Lagos.
Impact on consumers and businesses
Residents and businesses in Lagos, including tech startups, data centres and co-working spaces, gain protection against sudden long-delayed back-bills. The change improves billing predictability but does not reduce amounts already owed. Utilities must now meet stricter metering deadlines or lose revenue on older unmetered consumption.
The policy also opens opportunities for smart-metering startups and pay-as-you-go energy platforms that help licensees comply with the new timelines.
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.
— Temitope George, Chief Executive Officer and Executive Member, LASERC
What happens next
Stakeholders should watch for the official commencement date of the Supply Code, after which the 12-month clock begins. Distribution licensees will face enforcement pressure to roll out meters and issue timely bills, with non-compliance risking lost revenue on older unmetered usage per Sawabiya News and EUROS.
