BUSINESS DAY
Lagos State Governor, Babajide Sanwo-Olu, has signed the Lagos Electricity Bill 2024 into law, a pivotal step towards ensuring 24-hour electricity supply across the state.
The new law replaces the Lagos State Power Sector Reform Law of 2018 and aligns with the Federal Government’s 2023 approval allowing states to generate and distribute electricity.
“The bill is a major step by the state government to ensure a 24-hour electricity supply to every corner of the state, following the Federal Government’s approval for states to generate and distribute energy in 2023,” said Gboyega Akosile, the governor’s special adviser on media and publicity on X.
Here are eight major changes to watch for under this landmark legislation:
Creation of a localised electricity market
The law establishes the Lagos Electricity Market, a state-governed system that will oversee the generation, transmission, and distribution of electricity within Lagos State.
This move reduces dependence on the national grid, offering Lagos more autonomy in addressing its energy demands. This restructuring could improve efficiency and reliability in power supply for the state’s industries and residents.
Establishment of Key Regulatory Bodies
It also creates four new agencies to promote off-grid solutions and enhance electricity access in underserved areas.
The four new institutions will drive the implementation and governance of this law:
Lagos State Electricity Regulatory Commission will regulate market players, issue licenses, and ensure compliance with industry standards.
Lagos Independent System Operator (ISO) will manage operational efficiency and grid reliability.
Lagos State Electrification Agency will lead efforts to electrify underserved areas.
These bodies provide a regulatory and operational framework to ensure the market runs smoothly and fairly.
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