Electricity distribution companies have faulted the Lagos State Government’s proposed plan to phase out electricity customer band classification, warning that the move could trigger consumer unrest, worsen market distortions, and lead to blackouts if implemented prematurely.
Officials of the power firms, who spoke anonymously with The PUNCH due to the sensitivity of the matter, said the intention of the Lagos State Government was commendable but argued that the state must first guarantee a stable electricity supply across all areas before abolishing the banding structure introduced by the Nigerian Electricity Regulatory Commission in 2024.
The criticism follows comments by the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, who said at a ministerial press briefing in Alausa, Ikeja, on Monday that the state was working towards eliminating electricity band classification and ensuring stable power supply for all residents.
Under the NERC framework introduced in April 2024, electricity consumers were categorised into Bands A to E based on the number of hours of electricity supplied daily. Band A customers, who enjoy a minimum of 20 hours of electricity supply, pay cost-reflective tariffs, while customers in lower bands continue to enjoy government subsidies with fewer hours of supply.
