Electricity distribution companies have pushed back against plans by the Lagos State Government to eliminate electricity tariff band classifications, warning that the move could create major challenges in the power sector if introduced too soon.
The opposition followed recent comments by the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, who said the state was working towards a system that would provide stable electricity supply without the current customer band structure.
Under the existing framework introduced by the Nigerian Electricity Regulatory Commission in 2024, electricity users are grouped into Bands A to E depending on the number of daily supply hours they receive.
Customers in Band A pay higher cost-reflective tariffs in exchange for a minimum of 20 hours of electricity supply, while lower bands continue to enjoy subsidised rates with fewer hours of power.
However, power distribution operators argued that removing the classification system before improving electricity generation and supply nationwide could worsen tensions among consumers, especially in areas suffering from poor electricity access.
According to industry officials, many communities still experience long outages, and imposing uniform tariffs without guaranteeing steady supply could trigger public resistance.
The operators also stressed that metering remains a major challenge in the sector. They noted that eliminating estimated billing would require massive financial investment to provide prepaid meters for millions of customers across Lagos.
Some of the DisCos warned that customers in underserved areas would strongly oppose paying the same rates as consumers enjoying near-constant electricity supply.
They maintained that the current band system was designed to encourage improved service delivery and motivate operators to expand supply so more consumers could move into higher service categories.
The firms further argued that the focus should remain on increasing electricity generation capacity and strengthening infrastructure before considering the removal of the classification model.
According to them, expanding supply would naturally reduce tariffs over time and create a more stable electricity market.
The operators also expressed concerns about policy continuity, noting that future administrations in the state may adopt different approaches to power sector reforms.
Speaking earlier, Ogunleye said the Lagos State Government was targeting uninterrupted electricity supply for residents and questioned why 24-hour electricity could not be achieved in the state.
He stated that the government’s long-term objective was to build a power system where customer banding would no longer be necessary.
