• Targets cost-reflective tariffs, 100% smart metering amid tighter consumer rules
• State moves to raise electricity wheeling capacity six-fold, license 14 new operators

Lagos State Electricity Regulatory Commission (LASERC) has unveiled an ambitious electricity market reform agenda aimed at ending decades of blackouts in the country’s commercial capital.

Data showed that the state currently receives barely 930 megawatts (MW) from the national grid against an estimated demand of 12,000MW, leaving a supply gap of more than 11,000MW.

The reforms, unveiled at the maiden edition of LASERC stakeholders’ engagement in Lagos, include plans to expand wheeling capacity six-fold, license 14 new operators, enforce full smart metering, deepen competition and introduce cost-reflective tariffs under a new regulatory framework designed to attract investment and improve electricity reliability across the state.

As part of the reforms, LASERC disclosed plans to license 14 new operators expected to inject additional megawatts into the Lagos electricity market.

The proposed licensees include Axxela Limited, Daybreak, which received six licences, Isolo Power Gen Limited, Isolo Power Supply Limited, New Hampshire Capital Limited, GossLink Engineering Limited with three licences, and Enaro Energy Mini-Grid Limited.

The electricity market reform agenda aims to dismantle what officials described as the “culture of darkness” in the nation’s commercial capital, amid revelations that the state currently meets less than 10 per cent of its projected power needs.

The commission’s officials disclosed that while Lagos State is projected to require about 12,000MW to support its growing economy and industrial base, the state currently receives between 800MW and 930MW from the national grid, exposing a supply deficit exceeding 11,000MW.

Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, declared that the state was determined to permanently alter the structure of electricity delivery and move away from decades of chronic blackouts.

The commissioner, however, assured existing operators and investors that the reforms would not displace businesses already operating within the market.

“We are not going to do a model that now makes government a competitor with you, no. We will not compete with anybody. But we will allow you to compete among yourselves. And we’ll supervise those competitions,” he said.

LASERC also unveiled details of its long-term market roadmap, including plans for full smart metering penetration, cost-reflective tariffs, and the licensing of additional operators to deepen supply competition.

Chief Executive Officer of LASERC, Temitope George, said the state was not promising instant, round-the-clock electricity but was pursuing a phased transition anchored in pilot projects and long-term reforms.

George added that the state’s vision was not only about expanding electricity access but also ensuring affordability and sustainability.

According to her, LASERC’s success targets include 95 to 100 per cent grid availability for all customers, single-digit ATC&C losses, full metering penetration, and fully cost-reflective tariffs for all activities.

The Commission, however, disclosed that it had already licensed subsidiary companies of the two major distribution companies operating in Lagos, Eko Disco and Ikeja Electric, while plans are underway to license 14 additional operators expected to inject more megawatts into the Lagos market.

Meanwhile, the Nigerian Electricity Regulatory Commission’s (NERC) Head of Compliance, Hauwa Yakubu, who represented the Commission’s Chairman, Dr Musiliu Oseni, said collaboration between federal and state regulators would be critical to sustaining ongoing electricity reforms.