No More Band A as Govt Reveals Next Action on Electricity Tariffs

The Lagos State Government says it is planning to phase out the classification of electricity customers into different bands as introduced by the Nigerian Electricity Regulatory Commission in 2024, as reported by The Punch.

In April 2024, NERC placed electricity customers into bands A to E. Band A customers are premium customers mandated to pay the real cost of electricity while enjoying a minimum of 20-hour stable power supplies. Customers in other bands still enjoy government subsidies but with fewer electricity supplies.

Speaking at a ministerial press briefing in Alausa, Ikeja, on Monday, the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, said the Lagos State Government is eyeing stable electricity for all without any need for the banding system.

As the Lagos State Electricity Regulatory Commission now oversees the Lagos electricity market, Ogunleye said Governor Babajide Sanwo-Olu is interested in ensuring stable power in all homes.

“Let me say this: Part of what we are trying to enable is an environment that eliminates banding. Banding says that you have 3, 8, 12, or 21 hours of electricity.

“What we are saying is, is it impossible to have a continuous power supply? The governor has thrown the challenge and even repeated it again this morning. Is it impossible to have a 24-hour power supply?

“I strongly believe that we can do it. We have seen it before in this city. Banding is not what we want to focus our attention on,” he said.

Ogunleye had earlier said that the Lagos State Government would not allow an electricity subsidy, saying consumers in the state would pay the real cost of electricity as directed by the governor.

He said the state had expanded solar streetlight deployment, strengthened electricity infrastructure, and accelerated clean energy initiatives as part of efforts to transform Lagos into a reliable 24-hour economy.

Ogunleye said the state had intensified implementation of the Lagos State Electricity Law 2024 to establish a competitive electricity market driven by private sector participation.

According to him, the state has updated its Integrated Resource Plan and finalised a Strategic Implementation Plan aimed at eliminating the single-buyer electricity model and encouraging bilateral energy trading.

He said the Lagos State Electricity Regulatory Commission had strengthened licensing and enforcement activities, while the Lagos Independent System Operator was being positioned to improve grid stability and market performance.

On renewable energy deployment, Ogunleye said the government had replaced 22,000 conventional streetlights with smart solar-powered systems across major highways and roads, including Gbagada-Oshodi Expressway, Lekki-Epe Expressway, Ikorodu Road, and Funsho Williams Avenue, adding that another 20,000 solar streetlights had been installed, bringing the total number of operational smart solar streetlights in the state to about 42,000.

The commissioner said critical public facilities had also benefited from improved power supply interventions. He noted that Gbagada General Hospital now enjoyed between 21 and 22 hours of daily electricity following the installation of 2MVA and 1MVA transformers.

According to him, lithium-ion battery storage systems had been deployed across 11 primary healthcare centres and 52 secondary schools, while the Lagos State Television had been equipped with a 200KVA solar-powered energy system.