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In order to enhance the availability of electricity and guarantee that it only pays for energy that is really provided to public buildings, the Lagos State Government negotiated three power purchase agreements and implemented a “no power, no pay” policy. The agreements were inked as part of efforts to close power delivery gaps and provide a more dependable supply in the state, according to a statement released on Sunday by Lagos State Governor Babajide Sanwo Olu.
The governor stated, “I saw the signing of three power purchase agreements today at Lagos House, Marina, which are intended to build on existing capacity and address what has not been working.”
Different electricity companies have been designated under the agreement to support particular regions and infrastructure. While Mainland Power will continue to provide energy to Ikeja, Oshodi, and Anthony with plans to increase its coverage, Fenchurch Power will supply electricity to important water facilities in Adiyan and Iju.
In addition to working to further integrate its supply into the distribution network, Viathan will continue to guarantee consistent electricity for the island’s important facilities.
“Our main water facilities in Adiyan and Iju will be supported by Fenchurch Power. Ikeja, Oshodi, and Anthony will still be served by Mainland Power, with potential for growth. As we improve its integration with the distribution network, Viathan will continue to provide a steady power supply to important facilities on the island,” he continued.
The governor added that a new payment structure has been implemented to guarantee accountability and that the agreements have been evaluated to reflect current power industry realities.
“To reflect the current state of the market, we have modified these agreements. Power that is not provided will no longer be paid for. We can cut waste and better control expenses because payments are now linked to actual, metered delivery,” he said.
The governor claims that the action will guarantee better use of state resources, enhance power reliability for public infrastructure, and facilitate future increases in electrical capacity.
The governor stated, “This means better use of state resources, more dependable power for public infrastructure, and a clear path to scale capacity over the next few years.”
