- Lagos Targets 24-Hour Power Supply, Ends Electricity Subsidy
- Insists Lagos Power Consumers Must Pay Real Cost
- Seeks Investor Confidence
Electricity consumers in Lagos may soon face higher tariffs as the state government has declared that there will be no subsidy in the state’s emerging electricity market.
Eko Hot Blog reports that the Commissioner for Energy and Mineral Resources, Biodun Ogunleye, disclosed this during the maiden stakeholders’ forum organised by the Lagos State Electricity Regulatory Commission in Ikeja.
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According to Ogunleye, the administration of Governor Babajide Sanwo-Olu has made it clear that electricity users in Lagos must pay the actual cost of power supply as the state moves towards an autonomous electricity market.
He stressed that every player involved in electricity generation and distribution must be adequately compensated, adding that the state was already engaging federal authorities on gas pricing for power producers operating in Lagos.
“Everybody who contributes to every kilowatt that we receive must get paid. Lagos is saying it repeatedly: Mr Governor’s mandate is that there is no subsidy in Lagos,” Ogunleye said.
The commissioner also called on investors to take advantage of opportunities in the Lagos electricity sector, assuring them of returns on investment as the state reforms its power market.
He explained that Lagos was open to smaller-scale power generation projects ranging from 200 to 300 megawatts, instead of depending solely on large plants.
Ogunleye further noted that electricity distribution companies operating in Lagos may be required to release underserved and unserved communities to new operators in order to improve access to power across the state.
Also speaking at the forum, the Chief Executive Officer of LASERC, Mrs Temitope George, said the commission was focused on ensuring proper electricity pricing while working towards achieving 24-hour power supply and full metering coverage in Lagos.
George stated that the commission remained committed to consumer protection, investment growth, innovation, and the promotion of clean energy solutions.
She also disclosed plans to establish LASERC zonal offices in Ikorodu, Amuwo Odofin/Badagry, and Sangotedo/Epe to improve complaint resolution and make regulatory services more accessible to residents.
According to her, the offices are expected to begin operations in the third quarter of the year.
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