Lagos Limits Electricity Back-Billing to 12 Months

The Lagos State Electricity Regulatory Commission (LASERC) has directed electricity distribution companies operating in the state not to recover electricity charges that are more than 12 months old, except in cases involving meter tampering, illegal electricity use or obstruction of meter reading.

The commission issued the clarification in a consumer awareness notice published on its official social media platforms, saying the restriction is intended to protect electricity consumers from unlawful back-billing.

According to LASERC, electricity supply licensees are prohibited from recovering charges older than one year unless investigations establish cases of meter tampering, illegal electricity consumption or deliberate obstruction of meter reading.

The commission said the provision is contained in Paragraph 35(1) and (2) of the Lagos State Retail Electricity Supply Code and urged consumers to familiarise themselves with their rights under the state's electricity regulatory framework.

Consumer protection takes centre stage

The directive comes amid longstanding complaints by electricity consumers over back-billing and attempts by electricity providers to recover charges dating back several years.

LASERC assumed responsibility for regulating Lagos State's electricity market following the enactment of the Electricity Act 2023, which empowered states to establish and regulate their own electricity markets.

Since taking over from the Nigerian Electricity Regulatory Commission (NERC), the Lagos regulator has introduced measures aimed at strengthening consumer protection while laying the foundation for a more efficient and financially sustainable electricity market.

Lagos Pursues Wider Electricity Market Reforms

Even as it expands consumer protections, LASERC has maintained that electricity tariffs in Lagos must reflect the actual cost of supplying power.

Lagos State Commissioner for Energy and Mineral Resources, Abiodun Ogunleye, recently said the state would not operate an electricity subsidy regime, insisting that all participants in the electricity value chain must recover their costs.

The commission has also announced plans to phase out the existing electricity tariff band system, pursue universal metering, and work towards a 24-hour electricity supply across the state.

To improve access to regulatory services, LASERC is establishing zonal offices in Ikorodu, Amuwo-Odofin/Badagry and Sangotedo/Epe, which are scheduled to commence operations in the third quarter of the year.