Two-Month Free Electricity: Hope Rises as Stakeholders Reach Concensus
POLITICS DIGEST – The House of Representatives and major stakeholders in the power sector have agreed to set up a joint implementation committee on the planned two-month free power supply to Nigerians to cushion the effect of the COVID-19 pandemic.
The House recently announced its plan to consider a fresh Stimulus Bill that would ensure Nigerians get free electricity supply for two months.
Giving some hope in a statement Thursday, Speaker Femi Gbajabiamila said the mandate of the joint panel was to work out modalities for the proposed two-month bill waiver for the most vulnerable people in the country.
He said it was also expected to identify the group of Nigerians to benefit from the free power supply; the number of households connected to the national grid as well as find the way forward for regular power supply to Nigerians after the COVID-19 crisis.
Addressing the meeting, Hon Gbajabiamila said the essence of the meeting was to proffer means of alleviating the socio-economic effects of COVID-19 on Nigerians during and after the crisis period through the supply of power.
The meeting had in attendance Minister of Power Mamman Sale; Chairman and Chief Executive Officer (CEO) of the Nigerian Electricity Regulatory Commission (NERC) James Momoh; Group Managing Director (GMD) Nigerian National Petroleum Corporation (NNPC) Mele Kyari, and Managing Director/Chief Executive Officer (CEO) Nigeria Bulk Electricity Trading Plc (NBET) Marilyn Amobi, as well as representatives of Distribution Companies.
The rest include; House Leader Alhassan Doguwa; Chief Whip Mohammed Monguno; Deputy Leader Peter Akpatason; Deputy Chief Whip Nkeiruka Onyejeocha; Minority Leader, Ndudi Elumelu, and Chairman House Committee on Power Magaji Da’u-Aliyu.
On the committee’s mandate, Gbajabiamila said: “We are here to find out how we go about it. I’m happy that in my previous engagements with the NNPC GMD, he was very interested.
“Whatever the issues are within the power supply chain, they have to be dealt with and set aside, but how we deal with the issue at stake is why we are here today.
“This is not about technicalities or blaming any part of the power supply value chain; it is just about how we find a solution.
“The objective is very simple: we are asking people to stay at home for several days or weeks, so we need to make their stay at home comfortable. We need to help the poorest of the poorest at this time in Nigeria.
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“How we go about it is why we are here today. So, the mandate is very simple with all the stakeholders here. I believe that the best stimulus that we can give our people right now is the supply of electricity to the very vulnerable households.”
“Even if we agree that this proposal as an investment scheme according to the power sector stakeholders, I think we need to keep our eyes on the ball. What is that ball? Get to the end-user, who is the beneficiary of that investment scheme
“I wouldn’t want to look at it as the DisCos or GenCos or even the Transmission Company as the beneficiaries. For me, the ultimate beneficiary is the Nigerian people.
“If that is what the investment scheme takes, to supply power, it may not be 100 per cent, but let’s say 70 or 80 per cent, then we would have succeeded.
“So, we set up a group that will look into all the possibilities and implications and come up with a solution, so that the Nigerian poor can be taken care of during this period.”
The House expressed dismay at the non-existence of the Power Consumer Assistance Fund by NERC, which he said “would have served the purpose it was meant for, at this point, if it were in existence.”
Upon being informed that the fund was not in existence, he declared citing Section 83 of the Electricity Power Sector Act: “We have broken the law because the law mandated it; it is not optional. It is the Act that mandated its establishment.
“If that had been set up, way back, perhaps we would have had the fund with which to assist this proposal. This is the kind of time that this fund was anticipating.
“I think we should look into setting up this fund because we don’t know when next this kind of issue may come up.”
Also speaking, the Minister of Power, Mr. Sale, said the executive arm was ready to contribute its part to the success of the proposal.
“We will give all the support as well as technical advice toward the realisation of this objective. We are ready whenever our input is needed.”
In his remarks, , the NNPC GMD, Mr. Kyari, said the issue of gas supply to the GenCos was critical to power supply in the country, and that “the proposal is workable if the issue of who is to carry the burden of cost and margins in the supply value chain is settled and agreed on by all the parties.”
He said special note should be taken of the actual beneficiaries of the two-month free supply palliative because not every Nigerian falls into the category of the poorest.
The NNPC boss further noted that the existence of the industrial sector should be of concern at the end of the crisis period.
