A new Senate bill meant to eliminate the current barriers hindering private sector investment in the power value chain passed second reading on the floor of the red chamber.It was titled, ‘Electricity Bill 2021.
The sponsor, Senator Gabriel Suswan, says that when passed, the proposed legislation will attract the funds needed to address the current funding gaps confronting the industry since the privatisation of the power sector.
He says that all the constraints had received various interventions by the executive and legislative arms of government over the years.
The challenges have continued to threaten the viability of successor companies, including their financial capacity to invest in network improvement to guarantee reliable power supply as envisaged in their respective performance agreement.
The senator said that the Electricity Power Sector Reform Act 2005 was fraught with gaps and shortcomings that made it unsuitable to adequately regulate activities of market operators and participants in the post-privatised phase of the industry.
He also stressed the need to consolidate all legislations in the power sector into one electric statute in order to align regulatory responsibilities and ensure clarity of statutory roles for ease of compliance with regulatory requirements by operators.
Suswan says the bill had taken care of all issues that require policy, regulation and statutory guidance in the Nigerian power sector
The Electricity Bill, 2021, after scaling second reading was referred by the Senate President, Ahmad Lawan, to the Committee on Power for further work.
