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Lagos Assembly firm-up bill for Electricity Agency establishment , parley stakeholders to chart workable framework
The hope of Lagosian and interested players in the Lagos State power sector have been boosted as Lagos State House of Assembly stakeholders organize a public hearing of a bill for Lagos Electrification Agency Law.
Resolved to leverage on the recent alteration of the Nigerian Constitution which devolves to the states of the federation powers to regulate, generation, transmission and distribution of electricity, the house consequently sourced stakeholders’ input to the bill to make it more holistic for the intended move.
It will be recalled that a delegation of the state Governor Advisory Council including Cardinal James Odumbaku, Sen. Anthony Adefuye, Otunba Henry Ajomale, Dr. Yomi Finnih, and Otunba Femi Pedro met with the Speaker Rt. Hon Mudashiru Obasa on this important bill which was June 25th committed to the house committee seeking to repeal the Lagos Electric Power Reform Law, 2018 and provide for the creation and administration of the Lagos Electricity Market.
At the public hearing the Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa, said the Electricity Bill currently before the House is the confirmation of the state government’s zeal to ensure regular and uninterrupted power supply to residents.
The bill when passed into law will afford the agency power to licence, generate, transmit, and distribute electricity to unserved and underserved areas of the state.
The proposed law, according to the Speaker, who was represented by Deputy Speaker Mojisola Lasbat Meranda, “seeks to take care of everything in the electricity sector majorly by contributing to the sustainable development of the State.”
The Speaker added that the bill establishes a mechanism for electricity planning that promotes off-grid solutions for households and micro, small and medium scale enterprises.
“This bill is most timely because electrification is one of the most important aspects of a viable economy and improvement of the wellbeing of the people.
“Being a responsible Government, the Lagos State government has decided to create an agency, market and fund with the responsibility of ensuring adequate access of electricity with professional standards and modern technology.
“The bill is pursuant to our resolve to improve the electricity situation in the State,” he said adding that Lagos is proactive by taking advantage of the movement of electricity to the concurrent list.
The house Committee on Energy and Mineral Resources Chairman Hon. Sobur Oluwa while chatting with newsmen after the public hearing harped on the importance of the bill while charging would be investors to play by the rules and ensure seamless unbundling process to herald a more efficient power sector in the state.
“This bill was birthed as a result of the electricity act 2023 and the alteration of the Nigerian constitution of 2023 that empowers states to regulate power generation, transmission and distribution in their states.
“Basically, what we are trying to do now is that Lagos is trying to have its own future in its own hands. By setting up a commission to regulate the electricity in Lagos state so that teeming citizens and residents of Lagos can have a reliable and affordable electricity in the state.
“Electricity is very essential especially for our economic growth and as humans it has become necessity, in fact electricity affects all facets of our lives and that informs why you see people from all spheres of life here to contribute to this bill.
“The bill narrows down regulation to the state where we will be able to manage our GENCO’s and DISCO’s to make sure that electricity is reliable and affordable for our people.
“We feel that if we are able to regulate electricity at this level there will be coordination for this companies that are generating and distributing electricity so that we can speak for our people when we have naughty issues on metering and tariffs.
Oluwa while speaking further on the bill highlights the major benefits to include establishment of a commercial and technical regulatory framework for the Lagos Electricity Market to ensure reliable and universal access to electricity for all residents of the state.
“The bill outlines the creation of the Lagos State Electrification Agency to manage public electricity works and infrastructure as well as the Lagos State Electrification fund.
“These institutions will play pivotal roles in the delivery of reliable electricity to the unserved and underserved areas of our State.
“Through these initiatives, we aim to bridge the gap in electricity supply and enhance the quality of life for all Lagosians. We understand that reliable electricity is not a luxury but a necessity.
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“There will be competitiveness in terms of electricity and lagosians can be assured that a lot of investors will come in as this bill will be private sector driven.
“People who are interested in generating and distributing electricity will come to our state and if there is competition it drives down the price of commodity and that is what we intend to achieve with this bill.
“The two percent for the host community is not strange in this kind of bill, for most communities that are going to host electricity generating companies, they must find a way to give back to those communities in form of CSR or any other ways just to make sure that they impact their host communities positively.
“The industry is not a new one, it is already running and when we are able to regulate the industry as a state, we are going to put in mechanisms to ensure all Lagosians are safe.”
The Commissioner Energy and Mineral Resources Lagos Biodun Ogunleye expressed his joy over the process adding that it will further help firm-up the Governors poise for a transformed energy revolution in the state.
“This is part of what makes Lagos unique, it makes Lagos truly a global centre of excellence where everybody is carried along, at this stage we have had a public hearing with respect to our new electricity bill.
“We look forward to the third reading after the House of Assembly has taken in all the comments from the stakeholders and we believe the beginning of a revolution that Governor Babajide Sanwo-Olu has promised the people of Lagos.
“At the centre of Governor Babajide Sanwo-Olu’s strategy is an immediate sign up of nothing less 1000 gig of new renewable capacity coming on the market and that also enforces whatever is coming from the national grid so we are going to see a power sector that has a better energy mix.
“It is not just going to fossil fuel alone; you are going to see a great departure from what we had in the past where there will just be an outright collapse. You are going to see our own grid operate in such a way that we are not susceptible to a lot of the challenges that comes from a largely single source feed.
In his comment, the Chairman, South West of the Chartered Institute of Power Engineering, Vincent Umoh, urged the Assembly to ensure the bill mandated the state government to appoint technocrats with 15 years experience to head the proposed agency.
Umoh said Lagos State Government needs about 1,000 megawatts for it to ensure stable electricity supply to residents, while calling on government to give credence to security, supervision and monitoring.
Other stakeholders like Babatunde Oshadare the Chief legal Officer for Ikeja Electricity Distribution Company speaks to the need for people to see electricity as a product, adding that corporate governance is lacking.
Engineer Bayo olushogo of the Nigeria Electrical engineers urged the house to ensure that certified engineers hold key positions in the proposed Lagos state Electricity Agency in order to ensure seamless development in the sector.