Lagos rules out subsidy for electricity consumers

Electricity consumers in Lagos may need to brace themselves for a hike in electricity tariffs as the state government says there will be no subsidy in Lagos.

As the state transitions to an autonomous electricity market, the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said consumers in the state would pay the real cost of electricity as directed by the Governor, Babajide Sanwo-Olu.

Unless the governor changes his mind, Ogunleye insisted that there is no power subsidy in Lagos. Speaking at the recent maiden stakeholders forum organised by the Lagos State Electricity Regulatory Commission in Ikeja, Ogunleye said everybody in the Lagos electricity value chain must get paid, adding that LASERC is working with the federal authorities to get the gas-to-power price for Lagos producers.

“Everybody who contributes to every kilowatt that we are receiving, whether it’s renewable or whatever, must get paid. We are not carrying anything over. Lagos is saying it repeatedly: Mr Governor’s mandate is that there is no subsidy in Lagos. If he calls me tomorrow and says he wants to change his mind, I will still convey that again. But as of today, there is no subsidy in Lagos,” he emphasised.

Ogunleye advocated different approaches to the power situation in Nigeria to get the desired results. He appealed to investors to believe in the Lagos electricity market, with a promise that there would be returns on investments.

“No need for you to build a one-gigawatt plant; do 200 to 300 (megawatts). Let’s walk on this road together, and lines will fall in pleasant places. Everything will come together. There are things we need to do differently.

“We cannot do things the same way. And I’m appealing to everyone; we may not be sounding like you want us to sound. We may not be the people you think we are supposed to be. But please, let’s make these changes, this improvement. Let’s walk on it for four or five years and let’s see if God will crown it all,” Ogunleye said.

The commissioner stressed that the current power distributors in Lagos may have to hand over underserved and unserved areas to new operators to ensure electricity gets to all Lagosians.

In her words, the Chief Executive Officer of LASERC, Mrs Temitope George, stressed the need for appropriate pricing. George added that Lagos is targeting a 24-hour power supply within the state with 100 per cent metering, reiterating LASERC’s vision of becoming a leading electricity regulator by facilitating sustainable electricity development and improving the quality of life of residents.

She added that the commission remained committed to setting and enforcing standards, safeguarding consumers, enabling investments, supporting innovation, and promoting clean energy solutions across the state.

As part of efforts to strengthen consumer protection, George disclosed that LASERC was establishing zonal offices in the Ikorodu, Amuwo Odofin/Badagry, and Sangotedo/Epe axes to improve complaint resolution and enhance access to regulatory services. “The offices are expected to become operational in the third quarter of the year,” she said.(Punch)