- National Assembly moves to reserve 5% GenCos revenues
- Bill scales 2nd reading
- To use 5% for the development of host communities
The House of Representatives, in a Bill which passed the 2nd reading, moves to take 5% of Generating Companies (GenCos) revenues for the development of host communities. The Bill seeks to amend the Electric Power Sector Act (EPSRA) 2005. The Sponsor of the Bill, Babajimi Benson, explaining the Bill stated that the reservation of the funds from the GenCos is in line with global best practices.
”Without prejudice to any existing rights that may be accruing to host communities under the Act or any other enactment, five per cent of the revenue accruing from power generated by the power generating companies in the country shall be set aside for development of the communities”, Benson said.
“The purpose of this amendment is to provide for the development of communities hosting power generating companies across the country. When passed, the bill will help to ameliorate the sufferings and infrastructure deficit often suffered by communities due to the adverse climatic, livelihood and public health effects of their activities”, he added.
Justifying the demand for 5%, Benson said, ”Power generation, transmission, distribution and usage is known to cause harmful environmental and health challenges for host communities”. ”In fact, it is almost impossible to produce, transmit and consume power without significant environmental impact. The electricity sector is unique among industrial sectors”, he added.