26 Jul 2025, Sat

Discos Obstructing Lagos State’s Push for Power Control – Commissioner

Lagos State’s ambitious plan to take control of its electricity market is being stalled by electricity distribution companies (Discos), according to Biodun Ogunleye, the state’s Commissioner for Energy and Mineral Resources. In an exclusive interview with The PUNCH on Monday, Ogunleye revealed that the state’s efforts to transition into a power-generating entity and independently set tariffs are being undermined by the lack of cooperation from Discos, particularly Eko Electricity Distribution Plc (EKEDP) and Ikeja Electric Plc (IE). The commissioner’s remarks come amid growing tensions following the Enugu Electricity Regulatory Commission’s recent tariff cut for Band A customers from N209 per kilowatt-hour (kWh) to N160/kWh, effective August 1, 2025.

Ogunleye expressed frustration, stating, “You see that we have done everything that is required, but we don’t have the cooperation of the Discos. They are the challenge.” He accused the Discos of delaying negotiations by citing ongoing meetings without taking action, hindering Lagos’ ability to implement its tariff plan, which is set to be announced next week. The state’s push for control is anchored in the Lagos State Electricity Law, signed by Governor Babajide Sanwo-Olu in December 2024, which empowers the Lagos State Electricity Regulatory Commission (LASERC) to regulate generation, transmission, distribution, and trading within the state.

The transition, formalized in March 2025, saw regulatory oversight shift from the Nigerian Electricity Regulatory Commission (NERC) to LASERC, making Lagos one of seven states, alongside Enugu, Ondo, Ekiti, Imo, Oyo, and Edo, to control their electricity markets under the Electricity Act 2023. However, Ogunleye noted that, unlike Enugu, negotiations with Discos in Lagos have been “increasingly difficult.” He suggested the Discos are pushing back against state-led regulation, with some allegedly supporting a Senate bill to reverse the Electricity Act’s decentralization mandate.

The Discos’ resistance has sparked outrage, with X users like @isumunna and @jo_comms amplifying Ogunleye’s comments, tweeting, “Discos frustrating Lagos effort to control electricity — Commissioner.” @RealSeanCurtis criticized the Discos’ focus on elite areas while neglecting others, noting, “My area has had the worst year of electricity supply in a decade with unaccountable excuses from IBEDC.” The Forum of Commissioners of Power and Energy, led by Cross River’s Prince Eka Williams, defended state-led regulation, arguing it ensures affordable and reliable power, and dismissed Disco claims that tariff cuts threaten the sector’s viability.

The standoff highlights broader issues in Nigeria’s power sector, where Discos face accusations of overbilling, poor metering, and inadequate infrastructure. A recent audit revealed eight Discos overbilled 278,649 consumers by N47.81 billion in a single month to mask inefficiencies, further eroding trust. Lagos, Nigeria’s commercial hub with a daily power demand of 216,000 megawatt-hours, receives only a fraction from the national grid, underscoring the urgency of its push for autonomy.

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