Lagos electricity regulator targets ATC&C losses below 10% with AI monitoring — LASERC CEO

Lagos State Electricity Regulatory Commission (LASERC) is stepping up efforts to reshape the state’s electricity market, with stronger consumer protection, universal metering and tighter performance monitoring at the centre of its regulatory agenda.

In this interview with Nairametrics, LASERC Chief Executive Officer, Mrs. Temitope George, explains the Commission’s position on the 12-month limit on electricity charge recovery, the scale of billing and metering complaints, and how the regulator intends to hold electricity providers accountable for poor service delivery.

George also discusses the balance between cost-reflective tariffs and consumer protection, the progress made since Lagos assumed regulatory oversight of its electricity market, and the reforms expected over the next year.

She reveals that LASERC plans to deploy artificial intelligence-enabled monitoring systems as part of efforts to strengthen oversight and reduce Aggregate Technical, Commercial and Collection (ATC&C) losses to below 10%, while expanding competition and participation in the Lagos electricity market.

Nairametrics: LASERC recently clarified that electricity licensees cannot recover charges that are more than 12 months old. What prompted the Commission to issue this clarification now, and was it in response to a pattern of complaints or non-compliance by operators?

George: The clarification became necessary following public discussions and varying interpretations of the provisions of the Retail Electricity Supply Code published on the Commission’s website for Consultation. As a regulator, it is our responsibility to provide regulatory certainty and ensure that both consumers and licensees have a clear understanding of their rights and obligations.

It is important to state that the twelve-month limitation on the recovery of electricity charges applies prospectively from the commencement of the Retail Electricity Supply Code. It does not extinguish electricity debts that accrued before the Supply Code came into force. Such outstanding obligations remain payable in accordance with the applicable laws, contractual arrangements, and the prevailing regulatory framework.

The provision is part of LASERC’s broader consumer protection agenda and is closely linked to our commitment to achieving universal metering across Lagos State. The Supply Code places an obligation on licensees to meter all eligible consumers within the timelines prescribed by the Commission. Where a licensee fails to meet this obligation, it cannot recover electricity charges that are more than twelve months old, except in the limited circumstances expressly provided for in the Supply Code.

This approach ensures fairness by protecting consumers from the accumulation of prolonged unmetered charges while encouraging electricity distribution companies to accelerate meter deployment across Lagos State.

Nairametrics: How will LASERC monitor compliance with the 12-month rule, and what specific sanctions will electricity companies face if they continue to issue prohibited back bills?

George: Compliance with the Retail Electricity Supply Code is a regulatory obligation, and LASERC has established mechanisms to ensure that licensees adhere to its provisions. The Commission will monitor compliance through periodic regulatory reporting, routine compliance inspections, customer complaints, regulatory audits, and ongoing engagement with market participants.

Where a licensee is found to have violated the provisions of the Supply Code, LASERC will apply the appropriate enforcement measures available under the Lagos State Electricity Law 2024 and the Commission’s regulations. These may include directing the withdrawal or adjustment of disputed bills, ordering refunds where applicable, imposing administrative or financial sanctions, and requiring corrective measures to prevent future occurrences. Our objective is not to penalize non-compliance but to foster a culture of accountability, transparency, and improved customer service across the Lagos Electricity Market.

Nairametrics: What practical steps should consumers take if they receive bills containing charges older than 12 months, and how quickly can they expect LASERC to resolve such disputes?

George: Consumers who receive bills they believe are inconsistent with the provisions of the Retail Electricity Supply Code should first raise the issue with their electricity service provider (DISCO) through the provider’s customer complaint process. If the matter is not satisfactorily resolved, they should escalate the complaint to LASERC through the Commission’s established complaint resolution channels, providing copies of the disputed bills and any relevant correspondence.

It is, however, important to note that the twelve-month limitation applies prospectively and does not automatically extinguish electricity debts that accrued before the commencement of the Supply Code. Each complaint will therefore be reviewed on its individual merits and in accordance with the applicable regulatory framework. LASERC remains committed to resolving complaints promptly, fairly, and transparently while ensuring compliance with the law.

Nairametrics: Has LASERC observed an increase in customer complaints relating to back billing or estimated billing since assuming regulatory oversight, and what do the numbers tell you about the scale of the problem?

George: Billing-related complaints constitute the largest share of customer grievances, approximately 48%. While these complaints reflect longstanding challenges within the electricity sector, they also demonstrate increasing consumer confidence in LASERC as an independent regulator committed to protecting electricity consumers.

The trend highlights the urgent need to accelerate metering, improve billing accuracy, strengthen compliance by licensees, and deepen consumer education. These remain key priorities within our regulatory framework.

Nairametrics: Metering remains one of the biggest complaints from electricity consumers. What measurable progress has been made in closing the metering gap in Lagos, and what targets has LASERC set for the next 12 months?

George: Metering is central to consumer protection because accurate metering ensures customers only pay for the electricity they actually consume. LASERC has made universal metering one of its strategic priorities. Through the Retail Electricity Supply Code and other regulatory instruments, we have established clear obligations for licensees to meter eligible consumers within specified timelines based on the provisions of the Lagos State Electricity Law.

Over the next twelve months, the Commission will continue to work closely with licensees and other stakeholders to accelerate meter deployment, reduce estimated billing, improve billing transparency, and significantly narrow the metering gap across Lagos State. Our long-term objective remains universal metering for all eligible electricity consumers in Lagos.

Nairametrics: Lagos assumed regulatory control of its electricity market following the Electricity Act. Looking back, what tangible improvements can consumers point to today that would not have been possible under the previous regulatory framework?

George: The transfer of electricity regulatory oversight to Lagos State has enabled decisions to be made closer to the people and businesses we serve. Since assuming this responsibility, LASERC has developed key subsidiary regulations, introduced the Retail Electricity Supply Code, licensed additional market participants, strengthened consumer protection, improved stakeholder engagement, and established a transparent regulatory framework that reflects the unique characteristics of the Lagos Electricity Market.

These reforms are already creating greater regulatory certainty, promoting investment, improving accountability, and laying the foundation for a more reliable, efficient, and sustainable electricity market.

Nairametrics: Electricity providers argue that cost-reflective tariffs are necessary for investment, while consumers are demanding better service. How is LASERC striking a balance between protecting consumers and ensuring operators remain financially viable?

George: A sustainable electricity market depends on achieving the right balance between protecting consumers and ensuring that operators remain financially viable enough to invest in network expansion and improved service delivery.

At LASERC, we believe these objectives are complementary rather than conflicting.

Investors require regulatory certainty and a commercially sustainable environment, while consumers deserve reliable electricity, transparent billing, quality service, and value for money.

Our role as regulator is to ensure that any tariff framework is accompanied by measurable improvements in service quality, operational efficiency, customer satisfaction, and compliance with regulatory standards on the part of the Operator, while customers pay for electricity supplied to them; and the requisite legal measures in place to swiftly prosecute energy theft and vandalism.

Nairametrics: Many consumers complain that they are paying higher tariffs without seeing corresponding improvements in supply. What benchmarks is LASERC using to hold electricity companies accountable for service quality?

George: Consumers rightly expect improved service delivery when they pay for electricity services.

LASERC monitors licensees against clearly defined performance standards covering network reliability, hours of supply, customer complaint resolution, metering performance, technical compliance, customer service, and operational efficiency.

As part of this monitoring framework, the Commission also produces monthly performance fact sheets to track and communicate key service delivery indicators, helping to provide greater transparency on the performance of electricity companies and the quality of service delivered to consumers.

Through continuous monitoring, regulatory inspections, performance reporting, monthly fact sheets, and stakeholder engagement, the Commission ensures that licensees remain accountable for delivering safe, reliable, and quality electricity services.

Where performance falls below regulatory expectations, the Commission will take the necessary regulatory actions, including the downgrading of poor-performing feeders and orders for compensation to affected consumers.

Nairametrics: What are LASERC’s top regulatory priorities over the next year, and are there any major reforms or initiatives consumers and investors should expect

George: Our priorities over the coming year are guided by our Regulatory Agenda and our vision of building a competitive, reliable and sustainable Lagos Electricity Market.

A key priority is to focus on full market operation by closing existing market gaps, strengthening market participation and ensuring that all players operate within a clear and effective regulatory framework. We will also continue to license more market participants to deepen competition and improve service delivery.

We will be leveraging technology, including the deployment of AI-enabled monitoring systems, to strengthen regulatory oversight, improve transparency and drive down Aggregate Technical, Commercial and Collection (ATC&C) losses to <10%.

Another major focus will be the broadening and development of franchise zones for full market operation, alongside the conclusion of transitional arrangements for the DisCos. This will provide greater clarity and stability for investors and market participants.

We will also strengthen collaboration with Federal Government agencies and other key stakeholders across the electricity value chain. Through these partnerships, we intend to ensure that regulatory interventions are coordinated and deliver measurable improvements for consumers.

Ultimately, our goal is to create a well-regulated, technology-driven and investor-friendly Lagos Electricity Market that delivers greater reliability, efficiency and value to electricity consumers.

Nairametrics: What message would you like to send to electricity consumers in Lagos who believe they are paying more for a service that remains unreliable, and what assurances can you give them that the situation will improve?

George: My message to electricity consumers is one of reassurance and commitment.

LASERC understands the challenges many consumers continue to experience, and we recognize that reliable electricity is essential to economic growth, business productivity, and quality of life.

We are committed to building a Lagos Electricity Market where consumers receive fair treatment, transparent billing, improved service quality, and effective regulatory protection.

Through stronger regulation, accelerated metering, enhanced compliance monitoring, strategic investment, and continuous stakeholder collaboration, we are laying the foundation for long-term improvements in electricity service delivery across Lagos State.

We encourage consumers to continue engaging with the Commission by reporting service-related issues and exercising their rights under the regulatory framework. Consumer participation remains critical to building an electricity market that is transparent, accountable, and responsive to the needs of all Lagos residents.

At LASERC, our vision is “To be the leading electricity regulator that facilitates a safe, affordable and sustainable electricity market, while enhancing the quality of life for all residents in Lagos State”.

Our mission is “to regulate the Lagos Electricity Market by setting and enforcing standards, safeguarding citizens, enabling investment, supporting innovation and promoting clean energy.”

We are building a modern electricity market that is reliable, efficient, sustainable, and investment-friendly. Every regulation we develop, every licenses we issue, and every consumer protection measure we implement is aimed at creating lasting value for the people of Lagos. This cannot happen overnight; however we assure residents of Lagos that we are making steady progress.

We remain committed to working with all stakeholders to deliver an electricity market that supports economic growth, empowers businesses, protects consumers, and positions Lagos as a leading model for electricity market reform in Nigeria and across Africa.”