Babajide Sanwo-Olu, governor of Lagos, says the state will set up an electricity regulatory agency to regulate the activities of electricity distribution companies (DisCos).
The governor, speaking during a media chat on Thursday, said the agency will be modelled after the Nigerian Electricity Regulatory Commission (NERC).
Sanwo-Olu said with the unbundling of the Electricity Act, Lagos sits in a unique position, adding that the state is working with the two DisCos in the state.
“We have two distribution companies that are not entangled with any other state (Ikeja DisCo and Eko DisCo). We’re working with them. We realise that we need to collaborate with them for us to have a lasting solution,” he said.
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“So we have designed a Lagos state electricity bill that is gone to the house of assembly now. And that bill fashions out how we want to unbundle and untangle the relationship that currently exists with Ikeja and Eko DisCos so that other players can call into it, we can make the atmosphere investment friendly, and everybody can have a play in it.”
According to the governor, compared to other states, some of the DisCos “are tangled together in three states, ours is unique”.
“So the two of them understand that Lagos state have a big play to it. People want electricity like yesterday, and they’ve agreed with us. We want to play with the relevant regulatory laws,” he said.
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“We’re setting up our equivalent of Nigerian Electricity Regulatory Commission (NERC) and the rest of it. And so, they know that is what we’re going to do. It’s that law that we are waiting for the house to pass, and they are happy with us, they will have input into the law.”
Sanwo-Olu said once the law is passed, the state will secure new investments in both electricity generation and distribution sectors.
“They still have capacity to also grow and the willing buyer willing seller concept work will play better. There will be a lot more investment around gas, and other alternative sources of energy,” he said.
He said the state is well primed for facilitating electricity supply but because the environment was not ‘new entrant friendly’, the state could not proceed with its initiatives.
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Sanwo-Olu, however, said the obstacle has been removed with the passage of the Electricity Act.
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