Lagos state is the latest state on course to take charge of its electricity generation and distribution after Governor Babajide Sanwo-Olu signed the Lagos state 2024 Electricity Act into law.
Signing of Lagos Electricity Act 2024
Signing the Electricity Act into law, Governor Sanwo-Olu stated the state had to take its time to ensure the right thing was done and proper mechanisms were put in place to ensure no stones were left unturned.
“We wanted to take our time, we wanted to learn from mistakes that others would have gotten involved in, we wanted to understand the full scope and extent of what we are trying to get involved in.
“So we took our time and we are happy that over the last twelve months or so we have been able to do extensive work on this.”
Recognising the input of the State House of Assembly, Governor Sanwo Olu said “On behalf of the government and people of Lagos state, i want to thank the speaker and members of the committee on this bill and also other members of the house for working with us tirelessly on this journey.”
Key Objectives of The Lagos Electricity Act
The signing of the Act is to make the Lagos electricity market technically sound, financially viable, and well-regulated ultimately ensuring access to affordable, reliable, and sustainable electricity for all Lagos residents.
The Act also seeks to promote diverse energy sources, including renewable energy, encourage energy efficiency, Foster investment, competition, and innovation in the electricity sector, electrify underserved areas, with the aim of achieving sustainable development in Lagos State.
Creation of New Electricity Institutions
The law establishes critical institutions to manage and oversee the electricity market in Lagos state like the Lagos State Electricity Regulatory Commission empowered to carry out independent oversight for regulatory compliance and licensing.
It also establishes the Lagos Independent System Operator (ISO) to ensure system reliability and operational efficiency in addition to the Lagos State Electrification Agency which would be focused on expanding electricity access to underserved communities.
There is also a Special Funds pool set aside like the Electrification Funds to be used in financing electrification projects and sustainable energy solutions in underserved and Unserved Communities, Host Community Development (Community Trust Fund) which would be financed by a percentage of licensed power generating companies’ previous year’s expenditure and the Power Enforcement Unit charged with addressing issues of Electricity theft, damage and theft of energy infrastructure.
Significance
With the signing of this bill into law, Lagos state joins Enugu, Ekiti, Oyo, Imo and Ondo as states who have signed electricity acts into law and taken steps to take over their power generation following the signing of the Electricity Act by President Tinubu in 2023.
