Senate passes bill to enable private generation, distribution of electricity, hooks Abia’s ‘Energy Policy’

Senate has passed a bill opening the door for states and individuals to operate electricity generation and distribution businesses across the country.

Senate said, during its Wednesday plenary, that the bill when signed into law by President Muhammadu Buhari will permanently address the issue of recurrent and frequent collapse of the country’s national grid.

The passed Electricity Bill 2022 also allows for private entities to operate mini grids across the country.

The senate’s Electricity Bill 2022 is said to be similar to the one before the Abia State House of Assembly moved by the lawmaker representing Umunneochi State Constituency, Hon. Okey Igwe, and called the Abia Energy Policy bill.

According to the Chairman of the Senate Committee on Power, Senator Gabriel Suswam (PDP-Benue) in his presentation after the Wednesday plenary, the Electricity bill will help policy and regulatory measures to improve power generation, transmission and distribution capabilities of the sector.

“Since electricity is on the concurrent list in the constitution, the bill has allowed state governments to license people who intend to operate mini-grids within the states.

“The bill also gives legal backing to renewable energy. If you decide to generate one megawatt of power using solar as an energy source, that is also provided for.

“That is the only way the power problem would be solved. The space is now open; there is little restriction as to who can generate power and distribute it.

“What is obtainable now is that any power that is generated must be put on the national grid for transmission and distribution.”

Remarking, Senate President, Ahmed Lawan, after consideration of the bill assured of a quick passage by the House of Representatives followed by assent by President Muhammadu Buhari.

“We believe that this piece of legislation can change the fortunes of the electricity industry in Nigeria for the better.”

Already, the national grid has collapse six times this year alone, owing to load.

Senator Suswam, who informed the Red Chambers that the recent takeover of some distribution companies (DisCos) by banks was duly carried out in collaboration with the Nigerian Electricity Regulatory Commission (NERC) and the Bureau of Public Enterprises (BPE), said the Federal had disbursed $100m to Siemens to kick-start transmission in the distribution end of the power sector.

It would be recalled that speaking with Oracle Today, in an exclusive interview, in May, this year, Hon. Okey Igwe, currently a Member of the Abia House of Assembly, and also the Deputy Governorship candidate of the Peoples Democratic Party (PDP) in the state, ahead of the 2023 General Elections, had also disclosed introducing a similar Electricity bill before the state’s Assembly.

Hon. Igwe disclosed in the interview of introducing a bill containing an energy policy for Abia State, which, according to him, allows the state ‘to unbundle or truly privatise power,’ as he also described the policy as ‘my signature bill.’

“Since I have been in the House of Assembly, obviously my major function is to make laws, represent my people as well as do oversight.

“I am someone that believes that Nigeria was and still is and will remain a key player; if we want to get Africa right, then we have to get Nigeria right.  Unfortunately, the major failing of us as a nation, the tragedy of our democracy is that we have refused or have been unable to industrialise.  For me at the bedrock of that is, it is shameful, in my estimation, that in 2022, we are still talking about electricity because I think it is the key infrastructure that we need to get right; and you will see this economy take off like a rocket.

“Just by way of legislation or law making, I have introduced a bill that will, more or less, formulate an energy policy, within the limits permissible by the Nigerian constitution. It allows us to have an energy policy for Abia State. Basically what that bill seeks to do, when it becomes law before we round off, is to do what we did in the telecoms industry which is to unbundle or truly privatise power in Abia State and if we do that, I am confident that we will get a lot of investors come in.

“A state like Abia State should have five to 10 key electricity companies. Once we do that, obviously there will be private businesses; you will see that the problem of electricity evaporate like a melting ice. “That is my signature bill. 

“I am also continuing to talk about restoring electricity in Umunneochi. I have something called the Okey Igwe Energise Umunneochi. I am continually trying to energise communities; make donations, connect them to the so-called national grid. However I can, I intervene in those areas,” the lawmaker said.