Electricity consumers in Lagos have backed the state government’s planned phase-out of electricity band classification, describing the current Band A tariff regime as exploitative and insensitive to consumers battling rising economic hardship.

The consumers, under the aegis of the All Electricity Consumers Protection Forum, were reacting to concerns raised by electricity distribution companies over the Lagos State Government’s proposal to abolish electricity customer banding in the state.

The debate followed comments by the Lagos State Commissioner for Energy and Mineral Resources, Biodun Ogunleye, who said at a ministerial press briefing in Alausa, Ikeja, recently, that the state was working towards eliminating electricity band classification and ensuring a stable power supply for all residents.

In April 2024, the Nigerian Electricity Regulatory Commission categorised electricity consumers into Bands A to E based on the number of hours of electricity supplied daily.

Under the arrangement, Band A customers, who are expected to receive a minimum of 20 hours of electricity supply daily, pay cost-reflective tariffs, while consumers in lower bands continue to enjoy subsidies with fewer supply hours.

However, some distribution companies had faulted the Lagos proposal, warning that removing the classification system without first improving electricity generation and supply could trigger protests and instability in the electricity market.

Reacting, the National Coordinator of the All Electricity Consumers Protection Forum, Adeola Samuel, accused the DisCos of defending a system that benefits operators more than consumers.

“It is quite disingenuous for the DisCos to suggest that consumers will protest against the removal of the electricity band classification. Nigerians have endured years of exploitative billing under the band system, and many consumers see it as a framework designed mainly to enrich operators,” he said.

Samuel argued that the service-based tariff system introduced by the regulator had failed to deliver improved electricity supply despite the tariff increment.

“The reality is that consumers are paying more without enjoying commensurate improvement in power supply. What we have seen over the years is a continuous increase in tariffs without stable electricity. Many households are still suffering blackouts despite being placed on higher bands,” he stated.

He recalled that consumer groups had challenged previous electricity tariff increases in court. “The 2016 cost-based tariff increase was challenged by consumer advocacy groups because tariffs were raised without a corresponding improvement in electricity supply. The Federal High Court in Ikoyi ruled against it in June 2016 and declared it illegal,” he said.

According to him, electricity consumers also resisted the introduction of service-based tariffs during the COVID-19 lockdown in 2020. “When the service-based tariff was introduced in 2020, we opposed it because Nigerians were already struggling with the economic effects of the COVID-19 lockdown. Increasing tariffs at that period was insensitive,” Samuel added.

He maintained that the banding framework had failed to solve the country’s electricity challenges and had instead worsened the burden on consumers, especially unmetered customers.

“The band system allows DisCos to charge consumers based on projected supply hours even when many customers do not receive up to a quarter of the promised electricity. Those on estimated billing suffer the most because there is hardly any effective mechanism to verify actual supply,” he said.

Samuel accused electricity distribution companies of resisting reforms that could reduce their earnings from the current tariff structure, saying, “I can boldly say that the DisCos are fighting for the continuation of a system that has become a cash cow for them, not necessarily for the benefit of consumers.”

The consumer advocate argued that the Lagos electricity law placed stronger obligations on operators regarding metering and consumer protection, telling the DisCos that poor metering would not be overlooked by the Lagos regulator.

“Under the Lagos electricity law, operators are expected to meter customers before rendering service. That responsibility should not be shifted to consumers again. Metering is the duty of the operators. The issue of metering can only be the problem of any DisCo registered with LASERC, as the law in Section 75 aptly criminalises any licensee operating without first metering the consumers,” he said.

Samuel added that many electricity consumers considered Band A billing unfair because they were allegedly not receiving the minimum supply hours tied to the tariff category. “Many consumers see the band classification system as fraudulent and insensitive because people are paying huge tariffs without getting value for their money. Supply has not improved in many areas despite the higher charges,” he added.

He, therefore, urged the Lagos State Electricity Regulatory Commission to proceed with its proposed reforms. “For consumers in Lagos, the planned removal of the banding system is a welcome development. If implemented properly by LASERC, it will bring relief to many households across the state,” Samuel said.

Speaking earlier, Ogunleye had said the Lagos State Government was working towards an uninterrupted electricity supply instead of a framework built around supply bands. “Let me say this: Part of what we are trying to enable is an environment that eliminates banding. Banding says that you have 3, 8, 12, or 21 hours of electricity.

“What we are saying is, is it impossible to have a continuous power supply? The governor has thrown the challenge and even repeated it again this morning. Is it impossible to have a 24-hour power supply? I strongly believe that we can do it. We have seen it before in this city. Banding is not what we want to focus our attention on,” the commissioner had said.