Regulatory Transfer to LASERC will boost efficiency, says expert

Regulatory Transfer to LASERC will boost efficiency, says expert

CHIGOZIE AMADI

Dr Olukayode Akinrolabu, a power expert, says the transfer of regulatory oversight from Nigeria Electric Regulatory Commission (NERC) to Lagos State Electric Regulatory Commission (LASERC) will enhance the state’s electricity market.

Akinrolabu said this in an interview with the Business intelligence Monday in Lagos.

He lauded the move, stating LASERC’s leadership would enable tailored regulations, potentially improving service delivery and efficiency, provided necessary infrastructure was in place.

Akinrolabu, who is also the Chairman of the Customer Consultative Forum for Festac/Satellite Town in Lagos State, said that this could result in better service delivery and greater efficiency, provided that the necessary infrastructure, such as a well-prepared database is in place.

The move comes as Lagos State officially assumes control of its electricity market, following the transfer of authority from NERC to LASERC.

According to Akinrolabu, the new regulatory body will have the power to issue licenses and set tariffs specifically designed for Lagos’s dynamic electricity market, fostering healthy competition within the sector.

Akinrolabu, however, noted several challenges that might arise from the transition, such as concern on whether LASERC had the capacity to manage the complexities of the electricity market in Lagos.

The expert stressed that LASERC would need to build the necessary expertise, resources, and manpower to effectively oversee the market.

“There may also be conflicts with federal regulations, especially in areas where the federal government maintains jurisdiction, such as electricity transmission and distribution across state borders,” he said.

In spite of these potential hurdles, Akinrolabu was optimistic about the benefits of the transition, highlighting that LASERC’s localised approach would allow it to better address the state’s specific needs and implement tailored, innovative solutions.

He also emphasised that LASERC’s strengthened regulatory capacity would help improve service delivery and reduce electricity theft.

To ensure LASERC’s success, Akinrolabu called for investment in capacity building, suggesting that the organisation should focus on eliminating bureaucracy and mediocrity in its operations.

He also urged LASERC to engage actively with stakeholders, including consumers, power generators, and distributors, to address concerns like inaccurate billing and energy theft, which often lead to unfair costs being passed on to consumers.

The expert further stressed that transparency and accountability should be at the forefront of LASERC’s regulatory decisions.

He added that the collaboration with federal regulators would also be crucial to facilitate a smooth transition and address any potential conflicts regarding regulatory jurisdiction.

Akinrolabu acknowledged that the development could reshape the relationship between state and federal regulatory bodies in Nigeria’s electricity sector.

On one hand, he noted, it could lead to greater collaboration between the two levels of government, ensuring a smooth transition of oversight.

He cautioned that there could be power struggles if disagreements arise over regulatory authority or jurisdiction.

Akinrolabu said that as Lagos State embarks on this new chapter in managing its electricity sector, the move would lead to a more reliable and efficient power supply for the city’s residents.