.Senate passes Electricity Bill to boost power distribution.

.As power outage stalls Rep’s public hearing fuel subsidy

By Adekunle Adesuji

The national power grid has collapsed again on Wednesday.

The Eko Electricity Distribution Company confirmed that the grid collapse occurred at about 11:27 am.

“Dear customers, we regret to inform you of a system collapse on the national grid at precisely 11:27 am today, Wednesday, July 20. We are in talks with the Transmission Company of Nigeria to ascertain the cause of the collapse and a possible restoration timeline.

“We will keep you updated on the situation,” the Disco company said via its Twitter handle on Wednesday.

The collapse of the national power grid made it the sixth time this year, as it was reported on June 13 that the grid had collapsed for the fifth time in 2022.

The collapse is expected to, as usual, halt electricity supplies to some parts of the country.

Nigeria’s power grid had collapsed twice in March and twice again in April this year, as the power generation on the system had continued to fluctuate due to various concerns such as gas constraints, water management challenges, and gas pipeline vandalism, among others.

Recall that the quantum of electricity on the grid crashed from over 3,000MW on April 8, 2022, to as low as 10MW around 21.00 hours the same day.

The report further stated that another collapse of the grid occurred on April 9, 2022, as the nation’s power system collapsed to 33MW around 01.00 hours after it had earlier posted a peak generation of 3,281.50MW at 00.00 hours the same day.

Also, the national grid collapsed twice in March and this happened within a space of two days, a development that made the Federal Government summon a meeting of stakeholders to address the issue.

In another development, A bill seeking to increase power generation in the country has been  passed into  law .

The bill titled , “Electricity Bill, 2022 passed  sequel to the consideration of a report by the Committee on Power.

Chairman of the Committee, Senator Gabriel Suswan in  his presentation, said the bill seeks to, amongst others, provide an Ideal legal and institutional framework to leverage on the modest gains of the privatisation phase of the electricity power sector in Nigeria.

He added that when signed into law, the bill would improve utilisation of generated power through increased investments in new technologies to enhance transmission and distribution of generated power to minimise aggregate value chain loses.

According to the lawmaker, the piece of legislation would “reinvigorate the Institutional framework for the reform of the Nigerian Electricity Supply Industry (NESI) initiated and implemented by the Federal Government.”

He disclosed that the provisions of the bill seeks to promote policies and regulatory measures that would ensure the expansion of power transmission networks in Nigeria in order to address any imbalance in the existing transmission infrastructure.

Suswam noted that the bill would stimulate policy and regulatory measures to scale up efficient power generation, transmission and distribution capabilities of the sector; as well as address technological limitations and outdated infrastructure that are responsible for value chain loses.

The Senate President, midway through consideration of the bill, sought to know the role and operational capacity of banks that had taken over distribution companies (discos) indebted to them.

Responding, Senator Suswam explained that the take-over of entities (Discos) by banks was duly carried out in collaboration with the Nigerian Electricity Regulatory Commission (NER) and Bureau of Public Enterprise (BPE).

According to him, there was a transitional process put in place during the take-over of the Abuja Electricity Distribution Company (AEDC) by the United Bank for Africa (UBA) to ensure efficiency in service delivery.

He noted that such transitional process usually involves the invitation of new investors to scale up generation and distribution capacities.

He further disclosed that the Federal Government had disbursed $100 million (USD) to Siemens to kickstart transmission in the distribution end of the power sector.

On his part, Senator Ahmad Babba-Kaita (PDP – Katsina North), said the faulty way in which Discos were created was largely responsible for their inability to live up to expectations.

He, therefore, advised the federal government to ensure a transparent process in the selection of companies to take-over power generation and distribution across the country.

The Deputy Chief Whip, Senator Aliyu Sabi Abdullahi (APC – Niger North), noted that the aspect of renewable energy in the bill, was given prominence amidst the energy mix.

The Electricity Bill, 2022, after a clause-by-clause consideration of the Committee’s report by the Committee of the Whole, was passed by the upper chamber.

The Senate President, Ahmad Lawan, in his remarks after the passage of the bill, said, “because of its importance and sensitivity, we would like to see a quick concurrence by the House of Representatives, because time is of essence as far as Nigeria is concerned when you talk about electricity and energy supplies in Nigeria.

“So, we would like to see that this bill is fully processed in the National Assembly and sent to the Executive side of government for the consideration for assent by Mr. President.

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