Follow Us on Google
…Says unlicensed firms’ll be sanctioned
By Adewale Sanyaolu
The Lagos State government has said that it will establish its own off-grid power solution, separate from the unstable national electricity grid, through its Independent Off-Grid Electrification Strategy and Action Plan.
The initiative, to be completed within 18 months, aims to provide a more reliable and sustainable power source for the state.
The details of the plan are outlined in the Lagos State Electricity Law 2024, which was recently enacted by the state Assembly.
The law warned that stringent penalties have been highlighted for companies operating without obtaining relevant licence(s).
Consequently, the law advised that potential investors approach professionals to assist with obtaining these licences to avoid penalties.
The Plan would detail Lagos State’s target for off-grid solution, map potential cost effective off-grid solutions suitable to every area and details of the role of Lagos State in ensuring that the State is an enabling environment for such investment.
It is anticipated that embracing off-grid energy solutions would address the energy poverty faced by many households and businesses. Furthermore, off-grid solutions could provide the State with reliable and sustainable electricity. Therefore, the introduction of a strategy on off-grid solutions in the electricity system should encourage investments in the sector.
Another provision in the Law is the inclusion of renewable energy sources for energy generation in Lagos State. The Law enforces the development of a plan detailing the state’s renewable energy, energy efficiency and demand management targets and incentives.
Furthermore, the Plan would state the role of the state in incentivising and creating an enabling environment to encourage generation of energy from renewable energy sources.
President Bola Tinubu, had in June assented to the electricity bill, which empowers states, companies and individuals to generate, transmit, and distribute electricity.
Other News
The new electricity law repeals the Electricity and Power Sector Reform Act of 2005 and consolidates the laws relating to the Nigerian Electricity Supply Industry (NESI).
The Electricity Act of 2023 allows states to generate and distribute electricity, and the Nigerian Electricity Regulatory Commission (NERC) will no longer regulate electricity distribution within states that establish their own electricity markets.
Deriving its power from the Electricity Act of 2023, Lagos State Governor, Mr. Babajide Sanwo-Olu on December 3, 2024 signed the Lagos Electricity Bill 2024 into law, marking a significant step toward achieving 24-hour electricity supply across the state.
The new law also facilitates the delegation of regulatory powers from the Nigerian Electricity Regulatory Commission (NERC) to the Lagos State electricity agency, empowering Lagos State to regulate, generate, transmit, and distribute electricity for its residents.
The Lagos Electricity Bill 2024 repeals the Lagos State Electric Power Sector Reform Law 2018 and establishes the Lagos Electricity Market (LEM), providing the legal framework for its regulation.
The law also provides for the creation and administration of the Lagos Electricity Market and the establishment of a regulatory framework for the Lagos Electricity Market. It is expected that the Law would afford residents of Lagos the opportunity to access reliable and uninterrupted power supply.
Being the commercial capital of Nigeria and the economic hub of West Africa, it is expected that the creation of the Lagos Electricity Market would not just attract investment but also serve as a model for other states to emulate.
The law also establishes the Lagos State Electricity Regulatory Commission (The Commission) as the sole regulator of the electricity market in Lagos State.
The Commission is expected to regulate the Lagos Electricity Market and ensure compliance with the Lagos Integrated Electricity Policy and Strategic Implementation Plan.
Among the numerous powers endowed on the Commission by the Law, are powers to oversee licensing of companies and develop the methodologies to set tariff in Lagos State.
The powers conferred on the Commission by the Law would afford the Commission the opportunity to monitor/ control investments related to electricity and develop policies that would attract investors to Lagos State.
